Key Points
- The rate of Emiratization for private sector companies will increase
- Introduction of new fees for companies that do not meet the Emiratization rates
Overview
The government of the United Arab Emirates (UAE) increased the rates of Emiratization in the private sector and introduced penalties for employers that do not meet the requirements for 2023 effective January 2023. Emiratization mandates the inclusion of citizens of the UAE in the job sectors throughout the UAE. The rate will impact private sector companies and employers that employ over 50 skilled workers. These companies will be required to increase the percentage of employees who are citizens of the UAE by a minimum of two percent annually. The government aims to achieve an increase in the overall rate of Emiratization by 10 percent by 2026.
Penalties will also be introduced for companies that do not adhere to the Emiratization requirements and these companies will be fined up to 6,000 AED each month for every Emirati citizen not employed at the same level.
What are the Changes?
On 12 May 2022, the government of the UAE announced changes to the rates of Emiratization and a long-term plan for increasing the number of citizens of the UAE employed at private sector companies. Stricter penalties have also been introduced for companies that do not comply with these changes.
Looking Ahead
Employers should ensure that Emiratization rates are met prior to January 2023. Continue to check the government of the UAE's website and Envoy's website for the latest updates and information.
Originally published 25 May 2022.
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