The UAE Cabinet adopted a set of incentives to boost Emiratisation rates in private sector establishments on Monday, 9th May 2022. As the UAE continues to introduce multiple labour reforms to attract talents from around the world, the country's leadership is ensuring that Emiratis remain an active part of the workforce.

The determinations are part of 'Nafis', a federal scheme to boost the number of UAE citizens in the private sector.

Here is all you need to know about the new Emiratisation rule in UAE.

What's the new Emiratisation rate for private sector firms?

According to His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, the country has set a “minimum” Emiratisation rate of 2 per cent annually for high-skilled jobs in establishments having more than 50 employees. The aim is to raise this rate to 10 per cent by 2026. This will create more than 12,000 job opportunities annually for citizens in all economic sectors.

New discounted Service fees

Among the incentives for private sector establishments that exceed their Emiratisation targets is an 80 per cent reduction in service fees of the Ministry of Human Resources and Emiratisation. This discount will be offered to firms that “accomplish major achievements in terms of recruitment and training of Emirati citizens”.

Salary support

Nafis has an Emirati salary support scheme. UAE citizens will be offered one-year salary support of up to Dh8,000 per month during training. University graduates will get a monthly support of up to Dh5,000 for up to five years.

The programme provides Emirati coders, nurses and accountants with support in addition to their existing salaries.

Pension support

The programme also offers a subsidised five-year government-paid contribution on the company's behalf against the cost of pension plans for Emirati staff.

Child support

Nafis also offers a monthly grant of Dh800 per child per month, with a maximum of Dh3,200 for Emiratis working in the private sector.

New penalty norms for Non-compliance with Emiratisation rules

The authorities in UAE will impose a fine on private firms which don’t follow rules to employ a 2 percent Emirati workforce and the non-compliant companies will be made to pay AED 6,000 fine a month which will increase to AED 1,000 per year.

The UAE Cabinet, chaired by Sheikh Mohammed bin Rashid Al Maktoum, the Vice President and Prime Minister of the UAE and Ruler of Dubai, has adopted resolutions toward this effect.

Firms will be made to pay heavy penalties if they fail to meet the enhanced Emiratisation criteria.

Giving details about the UAE’s latest cabinet resolutions on Emiratization in a media briefing, Dr. Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, said private firms with 50 workers or more should have a 2 percent Emirati workforce in high-skilled jobs to reach 10 percent of quota in five years.

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