Dubai: The UAE Ministry of Human Resources and Emiratisation (MoHRE) has applied financial sanctions on private sector companies that failed to achieve the Emiratisation targets stipulated for the year 2022, it was announced on Friday (January 6, 2023).
The move is in line with the implementation of the UAE Cabinet’s resolution to raise the Emiratisation levels of skilled jobs by 2% annually in private sector establishments that have 50 employees effective 2022.
The resolution aims to increase the Emiratisation rate to 10% by the end of 2026.
The value of the financial contributions imposed on establishments amounted to Dh72,000 for each Emirati not appointed during 2022. This is calculated at the rate of Dh6,000 per month for every UAE national.
Saif Al Suwaidi, Undersecretary for Emiratisation Affairs at MoHRE, has called on the private sector establishments to abide by the Cabinet’s resolution and contribute effectively to raising Emiratisation rates in the private sector, which will enable Emiratis to participate in this important sector.
He said that this will contribute to enhancing the competitiveness and attractiveness of the UAE job market, stressing the ability of the Emirati cadres to play a positive role in creating a quantum leap in the growth of the targeted vital economic sectors.
Al Suwaidi praised the efforts made by the private sector establishments that met the required Emiratisation rate for 2022. He expressed the hope that the establishments will achieve the target set for them, and benefit from the skills of the Emirati cadres as part of the ‘Nafis’ platform across the various specializations of the targeted skilled jobs.
Establishments covered the Emiratisation resolution must work to raise their Emiratisation rate by 4% by the end of 2023, to avoid imposition of financial contributions by the beginning of 2024.
The value of the monthly financial contributions imposed on private sector entities will increase progressively at a rate of Dh1,000 annually until the year 2026.
The Ministry provides a package of incentives for distinguished establishments that make qualitative achievements in training and employing Emiratis in line with the objectives of the ‘Nafis’ programme, including joining the Emiratisation Partners Club, which raises the establishment’s classification to the first category in the Ministry’s system – which will entitle them to up to 80% discounts for availing the Ministry’s services.
The move aims to create more than 12,000 job opportunities annually for citizens in all economic sectors. Firms that do not comply will have to pay a fine of Dh6,000 monthly for every required slot that is left unfilled.
MoHRE recently announced that companies that fail to comply with the prescribed Emiratisation rate will be fined from January 1, 2023.
A Dh20,000 fine will also be slapped on private firms that submit false Emiratisation data.