DATE
October 24, 2023
CATEGORY
News
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Nafis
The Emirati Human Resources Competitiveness Council, ‘Nafis’ implements national initiatives aimed at increasing Emiratisation in the private sector. The council supports citizens in the private sector by increasing their competitiveness and providing this sector with Emirati skills.
The council aims to get 75,000 citizens into the private sector over the next five years. It also offers many initiatives to empower Emirati cadres and motivate private companies to attract Emirati talent.
Rate of Emiratisation – (Companies with 50 or more workers)
The Cabinet approved a decision to raise Emiratisation rates to 2 per cent annually for skilled jobs in private sector establishments with 50 or more employees and to achieve an overall rate of increase by 10 per cent by 2026. This is accompanied by granting incentives to institutions that perform qualitatively in the training and employment of citizens.
To support the commitment to achieve the above employment targets for nationals, non-compliant companies will have to pay an amount of AED 6,000 monthly, starting from January 2023, for every citizen who has not been employed. The amount will be paid through the digital systems of Ministry of Human Resources and Emiratisation (MoHRE), provided that the value of the monthly contributions increases by AED 1,000 annually until 2026. To monitor the implementation of these decisions in the labour market, MoHRE is working with the Cabinet Secretariat to measure the indicator of Emiratisation in the private sector.
Expansion of the Emiratisation targets – (Companies with 20 to 49 workers)
Starting in 2024, private sector companies with a workforce of 20 to 49 workers will be required to hire at least one UAE citizen and from 2025, they would be required to hire at least two Emirati citizens. Previously, this mandate applied only to companies with 50 or more employees.
This requirement is applicable to companies operating in the following 14 sectors:
- information and communications
- financial and insurance activities
- real estate activities
- professional, scientific and technical activities
- administrative and support services
- education
- healthcare and social work activities
- arts and entertainment
- mining and quarrying industry
- manufacturing
- construction
- wholesale and retail trade
- transportation and warehousing
- Hospitality services.
Companies with 20 to 49 workers that fail to employ at least one Emirati in 2024 will have to pay a financial contribution of AED 96,000 to the government. This contribution will increase to AED 108,000 for companies that have not employed two Emiratis by 2025.
Find more details of the expansion of Emiratisation targets in the Ministerial Resolution No. 455 of 2023 Concerning the Process for Implementing the Emiratisation Targets for Private Sector Establishments That Employ Between 20 and 49 Employees in Selected Economic Activities. (PDF, 169 KB).
Find out ministerial resolutions related to Emiratisation in the private sector:
- Ministerial Resolution No. 663 of 2022 Regarding Compliance with Emiratisation Regulations in the Private Sector(PDF, 643 KB)
- Ministerial Resolution No. 258 of 2022 Regarding the Reorganization of Tawteen Partners Club (PDF, 450 KB)
The Nafis award
The Nafis award is given to private sector establishments that excel in hiring UAE nationals. It also honours talented Emiratis in the private sector, who prove to be an effective force in various economic sectors. Read more about the Nafis award and the steps to apply.
The ‘Industrialists Program’
Read about the ‘Industrialists Program’ and its objective to build local capacities and accelerate Emiratisation in the industrial sector.