Emiratization in the UAE: Updated Guidelines

Emiratization in the UAE Updated Guidelines - Makebiz

Emiratization is a comprehensive government strategy aimed at stimulating economic development by reducing the country’s dependence on foreign workers. In the United Arab Emirates, this government initiative has been in place for more than a decade. 

The government has set specific emiratization targets in various sectors, including banking and finance, telecommunications, human resources, and hospitality. Thus, several initiatives have been launched to support Emirati job seekers such as:

  • Emirates Youth Empowerment Program. It provides training and employment opportunities for the younger generation. 
  • Mohammed Bin Rashid SME Development Institution. It is aimed at supporting Emirati entrepreneurs. The program provides financing and administrative support services.

The government has set ambitious targets for Emiratization. Thus, by 2026, 10% of positions should be filled by local nationals (employment target — 75,000 Emiratis). 

The process of Emiratization has a positive impact on UAE society, increasing the value of the diverse talents and skills of Emirati citizens and stimulating economic growth. However, according to a PwC Middle East survey, retaining indigenous talent in the private sector is a challenge. Many employees leave their jobs due to limited career opportunities, lack of work-life balance, and preferring public sector jobs over skilled positions. This underscores the need to create a supportive work environment, provide training and development opportunities, and offer attractive benefits and compensation to retain and attract talent.

A new ministerial regulation (No. 279 of 2022) was implemented by the Ministry of Human Resources and Emiratization (MoHRE) to regulate employment quotas in private organizations. From now on, they must attract and hire at least 2% of local employees for work positions out of the total number of employees per year. The law also classifies companies into three categories based on their compliance with the regulations, with different incentives and penalties associated with each type. Companies that fail to meet emiratization targets may face fines.

The NAFIS program, which is part of the law, offers benefits to employers of private companies that support the program. These include reduced employer pension contributions for Emirati nationals and reduced salary contributions for every citizen working under the NAFIS scheme.

Private companies with 20 industry organizations are also eligible for the NAFIS Award, which recognizes institutions that excel in hiring UAE nationals and rewards talented Emiratis in the private sector.

Some industries have a rule that requires hiring at least one local national worker in 2024 and further one more in 2025. There are also fines and reputational risks for non-compliance with the law. Such areas include information and communications, financial and insurance activities, real estate, professional and technical activities, among others.

Starting from 2024, private organizations with 20 to 49 employees are mandated to employ at least one Emirati national. From 2025, at least two nationals must be employed for every 20 to 49 employees.

One of the key strategies to successfully meet the targets is to improve the education and training of workers. Several initiatives have been launched to provide training and development opportunities for Emiratis. For example, the Federal Authority for Public Human Resources (FAHR) introduced the Federal Government e-learning portal (Al Mawrid) to provide expert training and professional development for federal government employees. Similarly, the Maharati system initiated by the Ministry of Health and Prevention provides e-learning modules developed in collaboration with international academic and training partners.

The goals and strategies described above are expected to strengthen national identity, create a more inclusive society, and generate economic benefits such as reducing unemployment among Emiratis and preserving national wealth within the country.

Read other articles on this topic:

Back