"Emiratization (employment obligation of UAE nationals)" Middle East legal situation ~ Key points explained by a Dubai-based lawyer

In the UAE, a policy known as Emiratisation has been implemented to promote the employment of UAE nationals. However, at present, Emiratisation does not apply to companies operating in free zones. While Emiratisation was not strictly enforced in the past, enforcement has become significantly stricter in recent years.

Originally, for private sector companies operating on the mainland, the requirement was to employ UAE nationals at a rate of 2% if the company had 50 or more employees. However, in 2022, new rules were introduced requiring companies to increase the proportion of UAE nationals among skilled workers by 2% annually, aiming to reach 10% by the end of 2026.

Non-compliance results in penalties, which increase by AED1,000 each year until 2026. For the year 2025, companies will be fined AED 8,000 per month for each UAE national not employed in accordance with the requirement.

Furthermore, in 2023, a new rule was introduced targeting private sector companies in specific sectors with 20 to 49 employees, requiring them to employ one UAE national in 2024 and an additional UAE national in 2025, for a total of two Emirati employees by the end of 2025. If a company fails to meet this requirement, a penalty of AED108,000 will be imposed.