Emiratisation is a government-driven initiative aimed at increasing the participation of Emirati nationals in the private sector. Introduced to support the UAE’s Vision 2021 and beyond, the program seeks to balance the workforce by encouraging businesses to hire and nurture local talent. The initiative also reflects the UAE’s broader aim to diversify its economy and reduce reliance on foreign labour.
For companies operating in sectors such as banking, insurance, and retail, meeting Emiratisation quotas is a legal obligation. Understanding these objectives helps employers align their recruitment and compliance strategies with national policies.
Private sector companies with 50 or more employees are required to increase the number of Emirati employees in skilled positions to 8% by the end of 2025. This regulation applies to all private companies with 50+ employees, with non-compliance resulting in an AED96,000 penalty for each unfilled position.
For specific companies with 20 to 49 employees, the requirement is to employ at least one Emirati in 2024 and one Emirati in 2025. This applies to companies operating in 14 identified sectors, with a similar AED96,000 penalty for non-compliance.
To comply with Emiratisation requirements, companies must adhere to specific guidelines set by the UAE government. These vary depending on the industry and size of the organisation.
Different industries have varying Emiratisation targets based on their strategic importance to the economy. For instance:
Alway check with MOHRE to ensure you know your target for the year, your company PRO can check this online.Mandatory Reporting
Businesses must regularly submit reports to the Ministry of Human Resources and Emiratisation (MOHRE) detailing their progress in meeting Emiratisation targets. This includes:
Failing to meet Emiratisation requirements can result in penalties, including fines or restrictions on new work permits. Staying compliant is therefore crucial not only for legal reasons but also for maintaining a strong reputation in the UAE’s business ecosystem.
As of this year, over 117,000 Emiratis are employed across 22,000 private-sector companies. These milestones highlight the effectiveness of the program in integrating Emirati talent into the workforce and its pivotal role in achieving the UAE’s economic vision.
Despite its benefits, meeting Emiratisation goals can be challenging for businesses, particularly those with a heavy reliance on expatriate talent. Common challenges include:
This is where partnering with an Employer of Record (EOR) can help. By managing recruitment compliance and offering expertise in Emiratisation policies, an EOR can ease the process for businesses.
Employers can utilise several resources to meet their Emiratisation targets, including:
An EOR provides businesses with the necessary infrastructure to comply with Emiratisation requirements while minimising administrative burdens.
Partnering with an EOR allows businesses to focus on their core operations while remaining compliant with national employment policies.
To align with Emiratisation objectives, businesses should adopt proactive HR strategies that integrate compliance with national policies.
Investing in long-term strategies to develop Emirati talent is vital. Companies can:
To retain Emirati employees, companies should:
Complying with Emiratisation requirements isn’t just about meeting quotas; it’s an opportunity to build a workforce that reflects the UAE’s vision for sustainable growth. Businesses that invest in Emirati talent can gain a competitive edge by fostering stronger relationships with local communities and government bodies.
For growth-driven businesses looking to launch or expand operations in the GCC, Auxilium is your ideal partner. As a leading Employer of Record (EOR) and outsourced staffing solutions provider in the region, we specialise in helping organisations establish and scale their businesses in Saudi Arabia, the UAE, Kuwait, Qatar, Bahrain, and Oman. Our expertise ensures your business navigates local regulations seamlessly. Discover how we can support your expansion journey by reaching out to our dedicated team today.