New requirements for SMEs in Dubai, UAE

New requirements for SMEs in Dubai, UAE - Makebiz

The UAE government has expanded its emiratization program by establishing workplace obligations for UAE nationals in firms with 20 to 49 employees. Previously, this requirement applied to companies with 50 or more employees.

The new regulations were introduced by the Ministry of Human Resources and Emiratization (MoHRE). They will come into force in 2024. Companies that fail to meet the established quotas will be subject to fines:

  • AED 96 thousand in 2024;
  • AED 108 thousand in 2025.

The requirement to hire locals applies to organizations operating in 14 sectors: trade, professional services, hospitality, real estate and many others. 

These measures are aimed at increasing employment opportunities for UAE nationals, especially local university graduates. The government aims to increase the percentage of Emiratization in the workplace by encouraging companies to hire local staff.

Experts say that the new requirements to place locals represent a major step in advancing the country’s goals to diversify the economy and increase competitiveness in the labor market. To comply with the new regulations, companies need to review their hiring strategies, develop training and mentoring programs, and create an attractive environment for UAE nationals to attract and retain talent.

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