On July 11, the Ministry of Human Resources and Emiratization (MoHRE) in the United Arab Emirates (UAE) issued an update on the companies that are subject to the Emiratization targets in the private sector in the UAE.
Previously, only companies of a workforce of 50 employees or more in the UAE were required to meet the Emiratization 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 UAE citizen in 2025.
The 14 sectors affected by the new Emiratization rules are:
- Administrative and support services.
- Arts and entertainment.
- Education.
- Construction.
- Financial and insurance activities.
- Health care 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, noncompliant companies will face an Arab Emirates Dirham (AED) 96,000 fine (approximately $26,136) for not complying with the decision in 2024. This fine will increase to AED 108,000 (approximately $29,403) to be imposed, as of January 2026, on companies that did not comply with the abovementioned Emiratization targets in the year 2025.
Mohamed Felaya writes for Mahmood Hussain Law Firm in Dubai, United Arab Emirates, and Abu Dhabi, UAE. © 2023 Mahmood Hussain Law Firm. All rights reserved. Reposted with permission of Lexology.