MOHRE announces new Emiratisation quota for UAE businesses with 20-49 employees
In implementation of a UAE Cabinet Resolution, the Ministry of Human Resources and Emiratisation (MOHRE) announced on social media the expansion of the private sector establishments’ pool, subject to Emiratisation targets, to include companies and individual establishments with a workforce ranging from 20 to 49 employees in specific economic activities.
The decision aims to increase the number of Emiratis employed in targeted establishments across 14 key economic sectors, requiring them to hire at least one UAE citizen in 2024 and another in 2025. The targeted establishments will be informed via the Ministry’s digital channels. These have been chosen based on criteria such as types of jobs, work environment, geographical location, nature of growth in these sectors as well as Emiratisation priorities.
Independent HR consultant, Muhammed Ashraf, pointed out that the majority of the companies in the UAE will have to employ UAE citizens in their workforce soon. The companies may contact Emiratization recruitment agencies, participate in Emiratization events, and register on the NAFIS platform to attract talent and recruit Emiratis into their workforce.
Talib Hashimi, Managing Director of TBH, says business owners need to be asking their recruitment partners and HR team some important questions like Are there nationals interested in working with small businesses? Where can we find them? How can we attract nationals to work for us, instead of larger employers or the public sector? How do we make our compensation package, incentives and value proposition attractive enough for nationals? How will this affect our business here in the country? What are the challenges we should expect? Are there opportunities this might present for our company? Hashimi added, “I believe that by asking these questions with the intention to find viable solutions that bring value to all parties is half the journey. Instead of posing these questions to justify why "it won't work.”
So far, according to the numbers from MOHRE, the number of Emiratis working in UAE private sector crossed 66,000 at end of first quarter of 2023. The current Emiratisation quotas are two percent for commercial entities with over 50 employees, four percent for banks, and five percent for insurance companies.
The Cabinet approved a decision to raise Emiratisation rates to two 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. Emiratisation requirements go hand in hand with the UAE’s target of creating 75,000 new jobs in the private sector by 2025.