Companies to Hire UAE Nationals by Year-End or Face AED 96,000 Fines

The Ministry of Human Resources and Emiratisation (MoHRE) has issued a stern reminder to companies within the UAE to meet their Emiratisation targets by December 31st, or face hefty financial penalties starting in the new year.

As part of ongoing efforts to boost employment among UAE nationals, the ministry has emphasised that companies with 50 or more employees must increase the number of UAE workers in skilled positions by 2% by the end of the year. For each target missed, companies will face a fine of AED 96,000 (roughly USD 26,100) per unfilled position.

These policies also apply to a select group of establishments employing 20 to 49 workers in specific industries. These companies must ensure at least one UAE national is employed and that any previously employed UAE nationals are retained. Failure to meet these requirements will result in the same financial penalty per unfilled position.

The ministry has made it clear that from January 1st non-compliant companies will be expected to pay financial contributions for their failure to hire UAE nationals. However, businesses that meet or exceed their Emiratisation targets will enjoy a range of benefits, including access to the Emiratisation Partners Club, which provides discounts of up to 80% on Ministry fees and priority in government procurement opportunities.

The Ministry is committed to supporting companies in their efforts, offering resources such as the Nafis platform to help them connect with UAE job-seekers across various sectors. Furthermore, businesses are encouraged to register their UAE employees in pension, retirement, and social security programs, and ensure they process monthly salaries through the Wage Protection System (WPS).

Since the launch of the Emiratisation initiative, more than 117,000 UAE nationals have been employed across 22,000 private-sector companies. MoHRE has also warned businesses against engaging in fraudulent practices such as “fake Emiratisation schemes,” and reassured that it has robust mechanisms in place to detect and address such violations. Additionally, UAE job-seekers are urged to verify the authenticity of job offers to ensure their continued benefits under the Nafis program.