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Increasing the number of UAE nationals in the private sector has long been a key objective for the government. In the past, the UAE government has launched a significant number of laws and initiatives to support the localization of the workforce. In the latest Emiratisation scheme which has been announced recently, the UAE’s Ministry of Human Resources and Emiratisation (MoHRE) have urged the private sector companies with more than 50 employees to expedite achieving an Emiratisation rate of 2 percent for skilled jobs to avoid penalties.
The UAE wants 10 percent of the private sector workforce to be made up of citizens by 2026.
The non-compliant companies will face financial penalties, which will be collected starting from January 2023. According to a tweet by the authority, Dh72,000 will be collected for each Emirati not employed starting January 2023 from non-compliant companies. A monthly financial penalty of Dh6,000 will be imposed on establishments that do not meet the required Emiratisation rate.
The ministry said private sector companies that reach the Emiratisation target will be included in the first category classification and membership of the Tawteen Partners Club and they receive discounts of up to 80 percent on the ministry’s service fees.