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Understanding the Emiratisation Program: What Employers Need to Know

The UAE’s Emiratisation program is more than just a policy; it’s a key initiative shaping the nation’s workforce. For businesses operating in the UAE, understanding and aligning with this program is essential to remain compliant and support the country’s vision for economic sustainability. This article explores the objectives, requirements, and strategies employers can adopt to meet Emiratisation goals while maintaining operational efficiency.
Mark Stephens
Chief Digital Officer

What Is the Emiratisation Program?

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.

Objectives of Emiratisation

  • Boosting Emirati Employment: Ensure Emirati nationals gain meaningful employment opportunities, particularly in the private sector.
  • Developing National Talent: Provide training and skill development programs for Emiratis to enhance their employability and competitiveness.
  • Enhancing Economic Sustainability: Foster a workforce that aligns with the UAE’s economic vision for long-term growth and self-reliance.

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.

UAE Private Sector: Emiratisation Targets for December 2025

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.

Key Requirements for Employers

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.

Industry-specific Quotas

Different industries have varying Emiratisation targets based on their strategic importance to the economy. For instance:

  • Banking Sector: Must meet a higher percentage of Emirati hires compared to other industries.
  • Insurance Sector: Also has strict quotas to ensure a consistent increase in Emirati employees.

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:

  • Employment data, including the percentage of Emiratis in the workforce.
  • Updates on training programs or initiatives aimed at enhancing Emirati skillsets.

Penalties for Non-compliance

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.

Emiratisation Achievements in 2024

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.

Challenges Employers Face with Emiratisation

Despite its benefits, meeting Emiratisation goals can be challenging for businesses, particularly those with a heavy reliance on expatriate talent. Common challenges include:

  • Talent Shortages: Some industries face a limited pool of Emirati candidates with the required skillsets.
  • Retention of Emirati Employees: Competing with public sector roles, which often offer more attractive benefits.
  • Balancing Costs: Integrating Emiratisation into HR strategies may involve increased hiring and training costs.

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.

MOHRE Advice and Support

Employers can utilise several resources to meet their Emiratisation targets, including:

  • Nafis Platform: Connect with Emirati job-seekers.
  • Emiratisation Partners Club: Explore partnership opportunities for sustainable compliance.
  • Pension and Social Security Systems: Ensure all Emirati employees are registered for long-term financial security.

How an EOR Can Support Emiratisation Goals

An EOR provides businesses with the necessary infrastructure to comply with Emiratisation requirements while minimising administrative burdens.

Key Benefits of Using an EOR

  • Local Expertise: An EOR understands Emiratisation regulations and ensures employment contracts meet all legal requirements.
  • Efficient Recruitment: The EOR can help identify Emirati talent through its partner network and streamline the onboarding process.
  • Ongoing Compliance: Regular monitoring of Emiratisation quotas and handling reporting obligations to MOHRE.

Partnering with an EOR allows businesses to focus on their core operations while remaining compliant with national employment policies.

Strategies for Successful Emiratisation

To align with Emiratisation objectives, businesses should adopt proactive HR strategies that integrate compliance with national policies.

Building a Local Talent Pipeline

Investing in long-term strategies to develop Emirati talent is vital. Companies can:

  • Partner with local universities to offer internships and training opportunities.
  • Launch mentorship programs to help Emirati employees grow into leadership roles.
  • Create flexible work arrangements that cater to Emirati job seekers’ preferences.

Enhancing Retention Strategies

To retain Emirati employees, companies should:

  • Offer competitive compensation packages tailored to the local market.
  • Provide career development programs to foster loyalty and engagement.
  • Create a workplace culture that values diversity and inclusion.

Emiratisation Compliance as a Growth Opportunity

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.

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