UAE private sector companies urged to reach 2% Emiratisation target by year-end

UAE authorities have urged private companies to crack down Emirates Meet the target by the end of the year or face financial penalties.

Companies with more than 50 employees must ensure that 2% of their workforce are Emiratis by early 2023, a target in line with government targets elegant initiative.

Any company that fails to meet the target must pay AED 6,000 per month for each Emiratis it fails to employ.

The UAE wants 10% of the private sector workforce to be made up of citizens by 2026.

The Ministry of Human Resources and Emirates said on Thursday that fines for non-compliance will be collected from January.

The ministry called on companies to support the country’s push to invest in local talent and benefit from the incentives offered.

“We are keen to support and empower private sector companies to achieve the Emiratisation target by the end of this year,” said Saif Souwadi, the Ministry’s Undersecretary for Emiratisation.

“We are working closely with the private sector, which stems from our belief that it is a key partner in developing and shaping the future.

“Given the role of the private sector in the UAE job market, achieving the UAE’s goals and direction requires joint efforts by government entities and the private sector to improve the business climate and create an investment climate that encourages investment from companies, investors, entrepreneurs and talent. The world is working in the UAE, especially in strategic priority areas.

“It is in the interest of private sector companies and their employees to comply with laws that regulate the job market.

“Our aim is to develop the capacity of the private sector so that it can keep pace with changes in global business models, and through the Nafis programme to attract the UAE’s national talent for technical jobs, is the cornerstone of these efforts.”

Reward companies for doing their part

In May, the United Arab Emirates indicated that it would voluntarily exceed Emirates Target.

This means companies that go beyond the legal requirements will only have to pay AED 250 for certain licenses instead of AED 3,750.

The move is part of a new classification system for private sector companies introduced by the Ministry of Human Resources and Emirates.

The Ministry offers a package of incentives to private sector companies that meet the Emiratization goals, including membership in the Tawteen Partner Club in the Category 1 Classification and Institutional Classification System, through which members can receive discounts of up to 80% on the Ministry’s services cost.

Updated: 10/20/2022 4:47pm