Emiratisation Requirement for Private Sector Employees

04 Jan 2024

From 1st January 2024, Emiratisation targets will no longer be just applicable to companies employing 50 or more employees. Certain private sector companies with a workforce of 20 to 49 workers will be required to hire at least one UAE citizen and from 2025, they will be required to hire at least two UAE citizens.

This requirement is applicable to companies operating in the following 14 main sectors (which are further divided into sub-categories of business activities):

1. Information and communications

2. Financial and insurance activities

3. Real estate activities

4. Professional, scientific and technical activities

5. Administrative and support services

6. Education

7. Healthcare and social work activities

8. Arts and entertainment

9. Mining and quarrying industry

10. Manufacturing

11. Construction

12. Wholesale and retail trade

13. Transportation and warehousing

14. Hospitality services.

Companies with 20 to 49 workers that fail to employ at least one UAE national in 2024 will have to pay a fine of AED 96,000 to the government. This fine will increase to AED 108,000 for companies that have not employed two UAE nationals by 2025.

For more information regarding this, or to check if your business falls within the remit of these recent changes please contact James Berry for further information.

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