31 December 2024 Emiratisation deadlines and employer obligations: Are you prepared?

As part of the UAE’s ongoing Emiratisation programme, employers on the UAE mainland with 20 or more employees are required to meet specific hiring targets for UAE nationals. This initiative aims to ensure that a minimum of 10% of skilled roles are filled by Emirati employees by 31 December 2026.

Key Emiratisation targets

The Emiratisation programme introduced annual hiring requirements based on company size:

• Businesses with 20 to 49 employees: Employ at least one Emirati by 31 December 2024 and at least two Emiratis by 31 December 2025. This applies to prescribed sectors such as healthcare, social work, real estate, financial services, construction, education, professional and technical activities, and more.
• Businesses with 50 or more employees: Employers must ensure UAE nationals make up at least 6% of their skilled workforce by 31 December 2024, progressing towards the ultimate goal of 10% by 2026.

What are the penalties for non-compliance?

Failure to comply could result in escalating fines, starting at AED96,000 for smaller businesses in relation to the 2024 target, with higher penalties for ongoing and subsequent non-compliance in 2025.

How can employers stay ahead?

The Emiratisation drive presents new opportunities and challenges for businesses. While the initiative aims to create more opportunities for UAE graduates, foster talent development and support the growth of small and medium-sized enterprises, smaller businesses may face greater pressures in meeting these requirements. Their limited resources compared to those of larger firms can make it more challenging to implement the necessary systems and strategies for compliance. Employers will need to carefully assess their workforce needs and explore available government support programmes to meet their obligations effectively. 

• Leverage Nafis: The UAE Government's partnership programme, Nafis, provides resources and initiatives to help businesses recruit qualified Emirati candidates.
  
  
• Understand pension obligations: Employers hiring Emiratis for the first time must ensure compliance with UAE pension rules, which require contributions to the General Pension and Social Security Authority for employees based in Dubai and the northern emirates, and to the Abu Dhabi Pension Fund for employees based in Abu Dhabi. These rules may differ from retirement and other end-of service or workplace savings schemes for expatriate employees, so it is essential to understand how they apply to your business.

Our employment team is on hand to assist with all aspects of Emiratisation legal compliance, from navigating the regulatory requirements to setting up internal systems to meet your obligations.

If you require further information or tailored advice, please get in touch.