New Emiratization Requirements In 2022

If you own a company with more than 50 employees in the United Arab Emirates, this article is for you!

As per the requirements of the UAE Ministry of Human Resource and Emiratization (MOHRE), all companies with more than 50 employees must hire UAE Nationals as a part of achieving the Emiratization target in the private sector.

According to the law firms in Dubai, this law has been passed under Article 2 (1) of the UAE MINISTERIAL RESOLUTION NO. (279) OF 2022 “Establishments registered with the Ministry employing more than 50 workers, shall increase their current Emiratisation rate from high-skilled jobs by 2 percent annually gradually raising the said rate to 10 percent by 2026”.

                                          DEADLINE: JANUARY 1, 2023

The targeted percentage of Emiratisation in establishments shall increase gradually by 2 percent as of 2023 until achieving the desired rate of 10 percent by 2026.

The new Emiratization requirements take effect on 1 January 2023. Penalties for those companies that are not compliant with the requirements will be imposed from such date. Accordingly, as from January 2023 non-compliant companies will be fined AED 6,000 per month in respect of each UAE national employee below the minimum requirements.

The prescribed Emiratisation percentage shall be calculated based on the total number of UAE nationals working in the establishment in relation to the total number of skilled workers, provided that at least one citizen shall be employed against every 50 skilled workers or part whereof, for each year of implementation, as follows:

Number of Skilled Workers in Establishments Employing More Than 50 Workers Minimum Employment Rate of UAE Nationals
0 to 50 skilled workers One Citizen
51 to 100 skilled workers Two Citizens
101 to 150 skilled workers Three Citizens
More than 151 skilled workers One citizen for every 50 skilled workers or part whereof

IF YOU ARE FACING HURDLES IN COMPLYING WITH THE LAW AND YOU NEED ASSISTANCE from a legal advisor in Dubai IN RELATION TO THE IMPLEMENTATION OF THIS LAW, PLEASE CONTACT OUR LAW FIRM -MAI ALFALASI ADVOCATES AND LEGAL CONSULTANTS, DUBAI, UAE TO HELP YOU COMPLY WITH THE LAW!