MoHRE Sets 30 June Deadline for Emiratisation Targets: What You Need to Know

In a decisive move to boost national employment and foster economic growth, the Ministry of Human Resources and Emiratisation (MoHRE) has set a concrete deadline of 30 June for private sector companies to meet their Emiratisation targets. This initiative underscores the UAE’s commitment to integrating UAE nationals into the workforce, enhancing job opportunities for Emiratis, and promoting skill development among the local population. The deadline not only highlights the urgency of this national agenda but also emphasizes the significant role that private sector employment plays in the country’s broader economic diversification efforts. Given the looming date, organizations across the UAE are now faced with the critical task of aligning their talent acquisition strategies with these labour policies or facing potential fines.

The article delves into the intricate details of the policy and mandate set forth by MoHRE, examining the progress report on Emiratisation efforts within the private sector. It also addresses the challenges faced by both employers and UAE nationals in meeting these targets and proposes viable solutions to bridge any gaps. Future projections on the impact of successful Emiratisation in the private sector are explored, highlighting the benefits of creating a more diverse and skilled workforce. By concluding with an analysis of what lies ahead for both the job market and workforce development in the UAE, this article provides a comprehensive overview of the ongoing efforts to achieve sustainable economic growth through the strategic integration of UAE nationals into the private sector employment landscape.

Policy and Mandate

Objectives of Emiratisation

Emiratisation is a strategic initiative by the UAE government aimed at increasing the employment of Emirati nationals in the private sector, particularly targeting skilled positions. The policy’s primary goal is to reduce reliance on expatriate labor, thereby strengthening the national identity and enhancing the competitiveness of the Emirati workforce. The Emirati Human Resources Competitiveness Council, ‘Nafis’, is tasked with implementing national initiatives to boost Emiratisation across various economic sectors, with specific targets set to integrate 75,000 citizens into the private sector over the next five years.

Legal Framework and Enforcement

The UAE has established a robust legal framework to enforce Emiratisation targets. Federal laws and Cabinet Resolutions mandate private sector companies to achieve specific quotas of Emirati employees. For instance, companies with 50 or more employees must increase their number of Emirati employees in skilled jobs by 2% annually, aiming for a 10% increase by 2026. Non-compliance results in substantial penalties, including fines starting at AED 6,000 monthly for each unmet Emirati employment quota, escalating annually by AED 1,000 until 2026. Furthermore, recent regulations have expanded these requirements to smaller companies, mandating them to hire at least one UAE citizen by 2024 and two by 2025, under threat of significant financial penalties for non-compliance.

Progress Report

Current Emiratisation Achievement Rates

Since the implementation of the revised Emiratisation policy, there has been a notable increase in the hiring of UAE nationals in the private sector. As of now, Emiratis account for 4% of employees in this sector, a significant shift given their previous underrepresentation. The Ministry of Human Resources and Emiratisation (MoHRE) has enforced mandatory quotas, resulting in 441 private establishments being acted against for violations related to Emiratisation targets since 2022. Notably, 436 establishments were fined for false Emiratisation claims, highlighting the government’s stringent monitoring and enforcement efforts.

Industries Leading in Compliance

Several industries have emerged as leaders in complying with Emiratisation mandates, particularly those not registered in free zones and with a workforce size of 50 or more. These industries have been proactive in meeting the incremental annual increase of 2% in Emiratisation rates, set to achieve a 10% total by 2026. The targeted sectors, chosen based on job types, growth nature, and Emiratisation priorities, include technology, healthcare, and engineering, which are pivotal in shaping the nation’s economic landscape and reducing dependency on expatriate labor.

Challenges and Solutions

Common Challenges Faced by Companies

The UAE government has been actively promoting Emiratisation to increase the participation of Emiratis in the workforce. As part of this initiative, companies are required to comply with certain quotas for hiring Emirati nationals. Failure to meet these quotas can result in substantial fines. Currently, 1320 companies have been flagged as non-compliant with Emiratisation policies. These companies are at risk of facing a hefty fine of 100,000 AED if they fail to meet the required quota by June. This not only poses a financial burden but can also damage the company’s reputation and its relationship with the government.

Government Support and Incentives

To overcome these challenges, companies can utilize several strategies and resources. Understanding the Emiratisation policies and the specific quotas is the first step towards compliance. Companies can reach out to entities like TXM Manpower Solutions, which provides Emiratisation recruitment services. These services can guide companies through the process, help them understand the requirements, and offer solutions to meet the quotas. Additionally, it’s crucial for companies to regularly monitor their compliance status to ensure they are on track and to avoid potential fines. Compliance with Emiratisation policies is not just about avoiding fines; it’s about contributing to the nation’s vision of a diversified and sustainable economy.

Future Projections

Long-term Goals of Emiratisation

The UAE’s vision for a robust and diversified economy is significantly supported by Emiratisation, aiming for at least a 10% increase in the employment of UAE nationals in skilled positions by 2026. The government’s strategy involves not only increasing job opportunities for Emiratis but also ensuring they are equipped to thrive in these roles. Initiatives such as training programs and apprenticeships are crucial, as they enhance the skills of UAE nationals, aligning with the nation’s goal of reducing dependency on expatriate labor.

Potential Modifications to the Policy

Recent regulations have introduced mandatory hiring targets for smaller companies, which are expected to significantly boost national employment. Starting in 2024, private companies with 20 to 49 employees must hire one Emirati, with an additional hire the following year. This policy adjustment is projected to create approximately 12,000 jobs annually across various sectors, notably in Life Sciences. The continuous adaptation of these policies ensures that Emiratisation remains aligned with economic needs and labor market realities, fostering a more inclusive and skilled workforce.

Through a comprehensive exploration of the Emiratisation policy, its enforcement mechanisms, and the accompanying challenges and solutions, this article has highlighted the pivotal role of integrating UAE nationals into the private sector for fostering economic growth and diversification. The deadline set by the Ministry of Human Resources and Emiratisation (MoHRE) for meeting these targets is a testament to the UAE’s commitment to this national priority. The progress made thus far, alongside the strategic initiatives by the government and private enterprises, underscores a positive trajectory towards creating a more inclusive, skilled, and diversified workforce that is crucial for the nation’s future.

As we look forward to the long-term implications of these policies, it is evident that continued cooperation between government entities, businesses, and the local population will be key to achieving the goals of Emiratisation. The potential for policy adjustments to adapt to the evolving economic landscape and labor market demands highlights a dynamic approach to national development. By embracing the challenges and opportunities presented by Emiratisation, the UAE sets a precedent for proactive labor market reforms that can inspire similar initiatives globally, contributing to a broader discussion on the integration of national populations into the workforce and economic planning.