As we approach the mid-2025 milestone, UAE businesses must act swiftly to meet the government’s Emiratisation increment. By 30 June 2025, companies with 50 or more employees must increase their Emirati workforce in skilled positions by an additional 1%. With substantial fines looming for non-compliance, proactive measures are essential.
We outline exactly what businesses need to know, provides actionable tips, and highlight government support programmes to ensure compliance.
Key Takeaways for UAE Businesses
- The 30 June 2025 Emiratisation increment of 1% is mandatory for businesses with 50 or more employees.
- Non-compliance leads to significant monthly fines and potential operational restrictions.
- Early recruitment planning, strategic hiring, leveraging Nafis support, and maintaining robust employee retention strategies are essential.
- Staying updated with MoHRE guidance ensures compliance and maximises available incentives.
The 30 June 2025 Emiratisation Requirement
The Emiratisation policy is a central pillar of the UAE government’s strategy to integrate more nationals into the private sector. The requirement is clear: by mid-2025, private sector companies with at least 50 employees must achieve a 1% increase in Emirati representation in skilled roles compared to their levels at the end of 2024.
This increment is part of the broader goal to reach a cumulative Emiratisation rate of 10% by the end of 2026. Notably, this mandate specifically targets skilled occupations, including professional, technical, managerial, and administrative positions.
Who Does It Affect?
- Private sector companies with 50 or more employees.
- Smaller firms (20-49 employees) in 14 critical sectors, including finance, real estate, education, health, retail, ICT, and construction, must also comply by hiring Emiratis incrementally by the end of 2025.
Penalties for Non-Compliance
From 1 July 2025, the Ministry of Human Resources and Emiratisation (MoHRE) will begin rigorous checks. Companies falling short face heavy fines:
- AED 8,000 monthly per unfilled Emirati position from July 2025.
- This fine equates to AED 96,000 annually per vacancy, rising to AED 9,000 monthly in 2026.
In addition to fines, businesses could face restrictions on obtaining new work permits and reputational damage from non-compliance.
How to Achieve Your 1% Emiratisation Increase
Meeting this target isn’t just about avoiding fines; it represents an opportunity to cultivate a diverse, sustainable workforce.
Proactive Recruitment Strategies
Early Workforce Planning
Identify key skilled roles that Emiratis could fill. Target vacancies and new positions suitable for recent graduates or mid-career professionals.
Effective Job Advertising
Utilise platforms like the official Nafis portal, local recruitment websites, and LinkedIn. Clearly communicate career growth, training, and attractive benefits tailored for Emirati candidates.
Engage in Career Fairs and Campus Recruitment
Participate actively in career events, such as Ru’ya Careers UAE, and build strong relationships with universities in the UAE. Internships and graduate programmes are proven methods for developing future talent.
Leverage Government Support via Nafis
The Nafis initiative offers comprehensive support to facilitate Emiratisation:
- Salary Subsidies: The government subsidises Emirati salaries, significantly reducing your employment costs. For example, qualified Emirati graduates can receive up to AED 5,000 per month directly from Nafis.
- Pension Contribution Relief: The UAE government covers 2.5% of Emirati employees’ pension contributions, lowering employer obligations.
- Training and Upskilling Initiatives: Nafis provides access to subsidised professional certifications, technical training, and industry-specific skill development programmes.
- Child Support Allowances: Emirati employees working in the private sector receive monthly child support allowances of AED 800 per child, making private sector roles highly attractive.
Partner with Specialised Recruitment Agencies
Agencies specialising in Emirati talent can streamline your hiring processes, connecting you with qualified candidates rapidly and efficiently.
Ensuring Long-Term Retention of Emirati Employees
Recruitment alone isn’t enough. Companies must foster environments that encourage long-term career growth and job satisfaction for Emirati staff.
Structured Onboarding Programmes
Develop comprehensive onboarding programmes that clearly communicate roles, responsibilities, and growth opportunities.
Provide Mentorship and Career Development
Implement mentorship schemes pairing Emirati staff with senior leaders. Regular feedback sessions, training opportunities, and clear career progression paths significantly improve employee retention.
Maintain Compliance with GPSSA
Register Emirati employees promptly with the General Pension & Social Security Authority (GPSSA) to ensure their eligibility for government incentives and meet regulatory requirements.
Recent Updates and Clarifications from MoHRE
Stay informed on recent MoHRE developments to ensure compliance:
- Expansion of Emiratisation to Smaller Companies: Starting in 2024, companies with 20-49 employees in critical sectors will be required to hire Emiratis incrementally. By the end of 2024, these firms must employ at least one Emirati, increasing to two by the end of 2025.
- Clarification on Skilled Roles: MoHRE has clearly defined ‘skilled roles’ as positions requiring professional, technical, or administrative expertise. Roles that do not meet these criteria do not count towards Emiratisation targets.
- Monitoring Against Fake Emiratisation: MoHRE has intensified its monitoring efforts to identify and penalise companies engaging in ‘fake Emiratisation’—hiring Emiratis without providing genuine job roles or meaningful employment opportunities. Enhanced digital monitoring systems are in place to detect irregularities and fraudulent practices.
The Ministry continues to provide regular updates, compliance workshops, and guidelines to help businesses meet these evolving requirements.
Why Compliance Matters Beyond Avoiding Penalties
Compliance with Emiratisation is not merely a regulatory obligation—it’s a strategic investment in your company’s future. Successfully integrating Emirati talent enhances your reputation, builds stronger community connections, and fosters deeper governmental trust. It unlocks substantial benefits, including discounted MoHRE service fees and priority access to government procurement opportunities.
Ultimately, embracing Emiratisation positions your business as a committed contributor to national development, setting you apart as a forward-thinking leader in your industry. Contact us today at Virtuzone for further information.
