Other BriefingsUAE Expands ‘Emiratisation’ Employment Plan: Foreign Investors Take Note
The UAE Ministry of Human Resources and Emiratisation has announced a significant expansion of its Emiratisation programme for the private sector. The new plan now includes companies and individual establishments employing between 20 to 49 workers, focusing on 14 specific main economic activities.
These cover a wide range of industries, including Information and Communication, Financial and Insurance Activities, Real Estate Activities, Professional, Scientific and Technical Activities, and Administrative and Support Services.
The initiative also includes the Education sector, Activities in the Field of Human Health and Social Work, Arts and Entertainment, and Mining and Quarrying.
Other sectors targeted in this initiative also feature Manufacturing, Construction, Wholesale and Retail Trade, Accommodation and Hospitality Services Activities, as well as Transportation and Storage.
The decision aims to expedite the Emiratisation process and is expected to provide a multitude of job opportunities in the near future.
According to the new mandate, targeted establishments are required to hire at least one Emirati citizen in 2024 and another in 2025.
The 14 specific economic activities within which the targeted enterprises operate will be shared via the Ministry’s digital channels. These establishments will also receive notifications through these platforms.
The Ministry has also introduced a penalty system to ensure compliance. Enterprises that fail to abide by these new Emiratisation rules will be subject to annual financial contributions. An amount of Dh 96,000 (US$26,150) will be imposed on those who do not hire an Emirati citizen as stipulated for the year 2024. The fine increases to Dh 108,000 (US$29,400) for 2025.
Businesses based in the UAE are advised to get into HR compliance.
For assistance with corporate establishment, tax planning, and ongoing compliance issues in the UAE please contact Dezan Shira & Associates Dubai office at dubai@dezshira.com
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