The UAE government has introduced a major update to its Emiratisation rules, requiring small businesses with 20 to 49 employees to hire at least two Emirati citizens. This move is part of the country’s ongoing efforts to boost local employment and ensure more job opportunities for UAE nationals in the private sector.
What Is the New Rule?
Starting in 2024, companies in specific business sectors that have between 20 and 49 employees must now hire at least two Emiratis. Businesses that fail to comply with this rule will face fines starting at AED 96,000, with penalties increasing if they continue to ignore the requirement.
Previously, Emiratisation targets mainly applied to larger companies with 50 or more employees. However, with this new rule, smaller businesses are also being included to help integrate more UAE nationals into the workforce.
Which Businesses Are Affected?
This rule applies to specific sectors, including:
- Information and Communications
- Financial Activities and Insurance
- Real Estate
- Professional and Technical Activities
- Administrative and Support Services
- Education
- Healthcare
- Construction
- Wholesale and Retail Trade
- Transportation and Storage
These industries have been chosen because they offer a wide range of job opportunities suitable for Emiratis. The government hopes that by including smaller companies in these sectors, more UAE nationals will find stable and rewarding jobs in the private sector.
Why Is the UAE Enforcing This Rule?
The Emiratisation initiative aims to increase the number of UAE nationals working in private companies, balancing the job market between expatriates and locals. The UAE government wants to make sure Emiratis have better career growth and opportunities in fields that were previously dominated by foreign workers.
Additionally, this move aligns with the UAE’s long-term economic vision. By encouraging local talent to participate in the private sector, the government aims to build a more sustainable and self-sufficient economy.
What Happens If Companies Don’t Follow the Rule?
Businesses that fail to hire two Emiratis will face financial penalties:
- AED 96,000 fine in the first year
- The fine will increase annually if the company continues to ignore the rule
Authorities will monitor compliance, and businesses found violating the rule may also face restrictions on work permits and other government services.
What Support Is Available for Businesses?
To help businesses meet these new hiring requirements, the UAE government has introduced several incentives and support programs. These include:
- Wage subsidies for hiring Emiratis
- Free training programs for new Emirati employees
- Government-backed recruitment assistance to find suitable candidates
- Reduced visa fees and other benefits for compliant companies
These initiatives make it easier for businesses to find and train Emirati employees, ensuring a smooth transition to the new hiring rules.
How Does This Affect Small Businesses?
For small businesses, this rule presents both challenges and opportunities. While some companies may struggle to find qualified Emirati candidates, the government’s support programs should help ease the process.
On the positive side, hiring local talent can bring long-term benefits. Emiratis are familiar with the UAE’s culture and business environment, which can help companies strengthen their operations and customer relationships. Additionally, businesses that comply with the rule can benefit from government incentives and avoid penalties.
What Should Employers Do Next?
If your business falls within the affected sectors and has between 20 and 49 employees, here’s what you need to do:
- Assess Your Workforce: Check your current staff count and determine if you need to hire Emirati employees.
- Register on Nafis: The Nafis program helps businesses connect with Emirati job seekers. Sign up to start the hiring process.
- Use Government Support: Take advantage of wage subsidies, training programs, and recruitment assistance offered by the government.
- Ensure Compliance: Stay updated on deadlines and requirements to avoid fines or penalties.
Final Thoughts
The UAE’s new Emiratisation rule is a significant step toward creating more job opportunities for nationals while ensuring businesses benefit from a skilled and diverse workforce. While it may be a challenge for some companies, government support programs are in place to make the transition easier. Small businesses should start preparing now to meet the requirements and avoid penalties in the future.
Also read: UAE Announces Official Work Hours for Federal Employees During Ramadan 2025
