UPDATE ON THE UAE PRIVATE SECTOR EMIRATISATION RULES: MORE PRIVATE COMPANIES ARE NOW INCLUDED

On 11th July 2023, the Ministry of Human Resources and Emiratisation (“MoHRE”) in the UAE issued a new update on the companies subject to the Emiratisation targets in the private sector in the UAE.

Previously, only companies with a workforce of 50 employees or more in the UAE were required to meet the Emiratisation targets set by MoHRE. The newly issued update will now bind small businesses with a workforce ranging from 20 to 49 employees across 14 key sectors in the UAE to hire at least one UAE citizen in 2024 and another in 2025.

The 14 sectors affected by the new Emiratisation rules are:

  • Administrative and support services.
  • Arts and entertainment.
  • Education
  • Construction
  • Financial and insurance activities.
  • Healthcare and social work.
  • Hospitality and residency services.
  • Information and communications.
  • Mining and quarrying.
  • Professional and technical activities.
  • Real estate.
  • Transformative industries.
  • Transportation and warehousing.
  • Wholesale and retail.

In January 2025, non-compliant companies will face an AED 96,000 fine for not complying with the decision in 2024. This fine will increase to AED 108,000 to be imposed, as of January 2026, on companies that did not comply with the abovementioned Emiratisation targets in the year 2025.

Disclaimer

This publication does not provide any legal advice and it is for information purposes only. You should not rely upon the material or information in this publication as a basis for making any business, legal or other decisions. Therefore, any reliance on such material is strictly at your own risk.

Author

Principal Associate – Sridevi Sidharthan 

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Author

Principal Associate – Sridevi Sidharthan 

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