The United Arab Emirates (UAE) has long been a global business hub, attracting entrepreneurs and companies from around the world. Its strategic location, flourishing economy, and business-friendly policies have made it an ideal destination for businesses to thrive. As part of its commitment to its citizens and to promote sustainable growth, the UAE government introduced the Emiratization program. This initiative focuses on increasing the participation of Emiratis in the workforce. In this blog post, we’ll delve into the new Emiratization rules in the UAE and explore how a Business Setup Consultant in Dubai can assist companies in navigating these regulations.
Understanding Emiratization Rules in the UAE
Emiratization is a comprehensive government program aimed at enhancing the employment prospects of UAE nationals, commonly referred to as Emiratis. The program spans various sectors, including banking, healthcare, education, and the private sector. Its primary objectives are as follows:
- Provide Emiratis with increased access to job opportunities in both the public and private sectors.
- To equip Emiratis with the necessary skills and qualifications to make them competitive in the job market.
- To encourage Emiratis to take on leadership positions, fostering a sense of pride and ownership in shaping the nation’s future.
New Emiratization Rules
The UAE government has recently implemented a series of new Emiratization rules to further strengthen the program. These rules affect various aspects of business operations, including recruitment, training, and workforce composition. The new rules now apply to companies across 14 economic sectors including property, education, construction and health care. Here are some key changes:
1. Elevated Emiratization Targets:
Companies are now required to meet higher Emiratization targets across various job categories. These targets may vary depending on the sector and the size of the company.
Companies in the private sector that have 50 or more employees must gradually hire more Emirati workers every year, increasing by 2% each year. This continues until they reach a total of 10% Emirati workers by the year 2026. The exact number of Emirati workers needed will be based on the total number of skilled workers in the company.
Now, even smaller companies with 20 to 49 employees need to hire at least one Emirati citizen by 2024 and another by 2025.
This change means fresh Emirati graduates have more chances to work in smaller businesses, which can help them grow in their careers. It shows that the UAE keeps working hard to make sure more Emiratis get good job opportunities, making the economy stronger and more diverse
2. Increased in monthly payments
Let’s say an Emirati graduate was offered Dh13,000 a month for their first job. With the original Nafis program from September 2021, they would receive Dh18,000 each month.
But in November 2022, this amount increased to Dh20,000.
For Emiratis with kids, there are extra perks. They get Dh800 for each child every month, and a family can receive up to Dh3,200 in total.
3. Investment in Skill Development:
Employers are encouraged to invest in training and development programs for their Emirati employees, ensuring they acquire the skills needed for their roles.
4. Job Posting on MOHRE Portal:
Firms must post job vacancies on the Ministry of Human Resources and Emiratization’s (MOHRE) portal. This portal serves as a bridge between job seekers and employers, streamlining the hiring process.
The rules apply to jobs that need special skills. Companies in free zones don’t have to follow these rules, but it’s suggested that they join in voluntarily.
5. Priority in Hiring:
When recruiting for specific positions, companies must prioritize Emirati candidates before considering expatriate workers. This ensures Emiratis are given the first opportunity to fill available positions.
A year later, the leaders said they want 75,000 Emiratis to work in private companies in the next four years.
6. Government Contracts:
Businesses bidding for government contracts must adhere to specific Emiratization requirements as part of the qualification process.
Semi-government companies and local banks are currently the main employers of Emiratis in the private sector.
But Emiratis have been employed for jobs in teaching and healthcare since then.
7. Penalties for Non-Compliance:
Companies failing to meet Emiratization targets or violating the rules may face penalties, including fines, suspension of services, and even the suspension of work permits.
If a company doesn’t hire enough Emirati workers as required, they will be fined AED 6,000 per month for each Emirati worker they are short of the quota. This fine increases by AED 1,000 every year.
Why Consult a Business Setup Consultant in Dubai?
The new Emiratization rules mark a significant transformation in the UAE’s employment landscape, necessitating adjustments in hiring and training approaches for businesses. Herein lies the crucial role of a business setup consultant in Dubai, who can offer the following benefits: They possess expertise in local regulations, including Emiratization rules, ensuring your business stays compliant. They provide customized Emiratization strategies tailored to your unique business requirements, aiding in effective target achievement. These experts streamline the process of posting job openings on the MOHRE portal, enhancing the attraction of Emirati talent. Leveraging their network and connections, they simplify recruitment efforts by tapping into local talent pools. Ultimately, their guidance helps in avoiding penalties and fines by ensuring your business adheres to Emiratization regulations.
The UAE’s Emiratization program reflects the government’s commitment to its citizens and to fostering sustainable growth. While the new emiratization rules may present challenges, they also offer opportunities for businesses to collaborate, invest in local talent, and contribute to the nation’s long-term prosperity. With the guidance of a business setup consultant in Dubai, companies can successfully navigate these regulations, ensuring compliance and thriving in this evolving business landscape. Embracing Emiratization not only benefits the UAE’s workforce but also positions businesses for sustainable success in this dynamic market.