Urgent.. The UAE announces the start of implementing job nationalization goals in the private sector

Abdallah Shahin - | Business

The Ministry of Human Resources and Emiratisation has initiated the implementation of the Cabinet's decision to broaden the scope of Emiratization targets. This decision applies to private companies operating in 14 specific main economic activities, employing 20-49 workers. The goal is to appoint at least one citizen in 2024 and one citizen in each of these companies, which amounts to over 12,000 companies. Another occurrence in the year 2025.

The Ministry has recently notified over 12,000 enterprises via its digital platform of the necessity to adhere to the decision, ensuring that they are provided with the chance to meet the required objectives.

The mentioned companies are involved in 14 distinct primary economic sectors, which encompass information and communications, financial and insurance activities, real estate activities, professional, scientific and technical activities, administrative and support services activities, education, activities in the field of human health and social work, arts and entertainment, mining and quarrying, manufacturing industries, construction, wholesale and retail trade, transportation and storage, and accommodation and hospitality services activities. These sectors are experiencing rapid growth and offer significant employment opportunities and favorable work environments.

The Ministry of Human Resources and Emiratisation has issued a statement urging the companies affected by the decision to promptly meet the Emiratisation targets, rather than waiting until the end of the year to fulfill their obligations. The ministry emphasizes the significance of these companies registering on the "Nafis" platform to take advantage of the program's support, which includes providing the private sector with skilled Emirati workers who can effectively contribute to the targeted economic sectors, as well as benefiting from other advantages.

The Ministry has officially announced that it will continue to organize training workshops aimed at educating company owners who are affected by the decision. These workshops will focus on the strategies and methods required to meet the set targets, as well as how to effectively utilize the support offered by "Nafis."

Starting in January 2025, companies that do not meet their required targets will be required to pay an annual financial contribution of 96,000 dirhams for citizens who have not been appointed. Similarly, in January 2026, a financial contribution of 108,000 dirhams will be imposed for the year 2025. Companies are permitted to make installment payments for the value of contributions, as agreed upon with the Ministry.

The implementation of the Saudization decision will be extended to companies with 20-49 people, while organizations with 50 or more employees will continue to be subject to Saudization targets. These larger enterprises are obliged to achieve an annual growth rate of 2% in the Saudization of their skilled positions.

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Abdallah Shahin
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The UAE is implementing a new ministerial decision regarding employees starting in January 2024