UAE: New Major Change Announced in Emiratization Rules for 2023

According to the Ministry of Human Resources and Emiratization, it has been announced that private companies with 20 to 49 employees are now included in the government’s Emiratization drive.

The announcement was made on Tuesday and applies to private companies across 14 economic sectors including property, education, construction and health care. The Minister of Human Resources and Emiratization, Dr. Abdulrahman Al Awar, leads the campaign.

“In implementation of a UAE Cabinet resolution, the ministry announces the expansion of the private sector establishments’ pool, subject to Emiratization targets, to include companies and individual establishments with a workforce ranging from 20 to 49 employees in specific economic activities,” a Twitter post read.

In implementation of a UAE Cabinet Resolution, the Ministry announces the expansion of the private sector establishments’ pool, subject to Emiratisation targets, to include companies and individual establishments with a workforce ranging from 20 to 49 employees in specific… pic.twitter.com/xDZfILPd7M

— وزارة الموارد البشرية والتوطين (@MOHRE_UAE) July 11, 2023

“The decision aims to increase the number of Emiratis employed in targeted establishments across 14 key economic sectors, requiring them to hire at least one UAE citizen in 2024 and another in 2025. The targeted establishments will be informed by the ministry’s digital channels.”

Companies, with 20 to 49 employees, who fail to employ at least one Emirati in 2024 face a fine of Dh96,000. That figure is expected to rise to Dh108,000 for firms that have not employed two Emiratis in 2025.

The sectors affected by the new ruling are:

• Information and communications
• Financial and insurance activities
• Property
• Professional and technical activities
• Administrative and support services
• Arts and entertainment
• Mining and quarrying
• Transformative industries
• Education
• Healthcare and social work
• Construction
• Wholesale and retail
• Transportation and warehousing
• Hospitality and residency services