United Arab Emirates' Emiratisation initiative yields success: Over 150,000 residents now employed in the private sector
The United Arab Emirates (UAE) is pushing forward with its Emiratisation drive, aiming to increase the participation of UAE citizens in the private sector. The Ministry of Human Resources and Emiratisation (MoHRE) has set new targets and introduced incentives for companies to hire more Emiratis, particularly in skilled roles.
By mid-2025, private sector companies with 50 or more employees are required to have at least 1% of their skilled workforce composed of Emiratis. This is a significant increase from the current 7% target for companies in skilled roles, which was expected to be achieved by June 30 this year. The UAE aims to continue increasing Emirati participation, with initiatives like the Nafis program supporting this goal.
Smaller companies, specifically those with 20 to 49 employees, are also expected to contribute. By December 31, 2025, these companies are required to hire at least one Emirati. Companies that fail to meet these targets will incur fines of Dh9,000 per month for each Emirati position that remains unfilled.
Starting July 1, 2025, MoHRE will conduct comprehensive checks to ensure compliance, including verifying the registration of Emirati employees with pension funds and the payment of monthly contributions. However, the ministry has not disclosed the specific economic activities that are subject to the new requirement.
Companies that meet their Emiratisation targets can benefit from incentives such as discounts on Ministry fees and priority in government procurement opportunities through the Emiratisation Partners Club. The ministry offers incentives and benefits to companies that demonstrate outstanding Emiratisation results, including financial discounts of up to 80% on MoHRE service fees and priority access to the government procurement system.
The UAE's Emiratisation drive has seen a record-breaking number of UAE citizens take up jobs in private sector companies. As of June 30, over 152,000 UAE citizens were employed in the private sector, indicating a nearly 12% growth from the end of April. The expansion of opportunities in the UAE's national labour market has been underscored by the 33% increase in the number of establishments operating over the past year.
Emiratis hold a wide range of positions in scientific, technical, and humanitarian disciplines, including roles such as specialists, managers, and administrative staff. The ministry has not announced any new initiatives or strategies to support the employment of UAE citizens in the private sector beyond the existing incentives and benefits.
Reports of negative practices that violate Emiratisation policies can be submitted via the call centre, MoHRE smart application, or the official website. The ministry has not specified any new targets for the overall Emiratisation rate beyond the 8% target for December 31.
The UAE government maintains a zero-tolerance policy toward fake Emiratisation, using a digital field inspection system to detect fraudulent practices and ensure compliance. The ministry has not provided details on the penalties for non-compliance with the new requirement.
Despite these challenges, the ministry remains optimistic for continued progress in the second half of 2025. The UAE's Emiratisation drive is a testament to the country's commitment to fostering a strong and diverse national workforce.
- The Emiratisation drive in the UAE has prompted a boost in health and finance sectors, as more Emiratis take up skilled roles in private businesses.
- With the environment of increased scrutiny and fines for non-compliance, businesses are finding opportunities in the news of financial benefits for meeting Emiratisation targets, such as discounts on Ministry fees and priority in government procurement.
- As the UAE government continues to support the employment of Emiratis in diverse sectors like science, technology, and humanitarian fields, it remains crucial for businesses to stay mindful of the ever-evolving environment of Emiratisation policies to avoid penalties and foster a strong and diverse national workforce.
