A fine of AED 6000 per person per month is charged
The Ministry has also announced that it has started the process of imposing fines on companies that do not hire natives in 2% of skilled jobs. Firms that fail to hire an expatriate who is obliged to employ them will be fined AED 72,000 per year to replace that person. This means that the fine is calculated at the rate of AED 6,000 per month for each non-employed UAE national. Saif Al Suwaidi, Undersecretary for Emiratization Affairs at the Ministry, called on private sector organizations to comply with the Cabinet’s resolution and contribute effectively to raising the rate of Emiratization in the private sector. He said it will help to increase the competitiveness and attractiveness of the UAE labor market.
Benefits to companies under Nafees scheme
Al Suwaidi said that the UAE Ministry of Human Resources and Emiratization is providing a package of incentives to distinguished institutions that achieve qualitative achievements in training and employing expatriates in line with the objectives of the ‘Nafees’ program implemented by the government as part of supporting indigenization. According to this, the private sector organizations selected for the best first category will be eligible for discounts of up to 80 percent on the services of the Ministry, he said. Al Suwaidi lauded the efforts of private sector firms for achieving the required Emiratization rate by 2022.
The rate will double by the end of 2023
Meanwhile, by the end of 2023, the current two percent indigenization rate will be doubled to the current rate, the ministry said. Private entities covered by the Emiratisation regime will face the measures from the beginning of 2024 unless they increase their Emiratisation rate to four per cent by the end of this year. The Ministry also stated that the resolution aims to raise the rate of Emiratization to 10 percent by the end of 2026 by increasing the rate by two percent every year. Through this, the government aims to create 12,000 jobs per year for citizens in all economic sectors.
The monthly fine will increase by AED 1000 every year
Al Suwaidi also informed that the monthly fine imposed on private sector entities that do not comply with the related Emiratization conditions will increase gradually at the rate of 1,000 dirhams every year. Or the current monthly fine of 6000 dirhams will increase to 7000 dirhams in 2024, 8000 dirhams in 2025 and 9000 dirhams in 2026. According to this, a person will have to pay a fine of 72,000 dirhams in 2023, 84,000 dirhams in 2024, 96,000 dirhams in 2025 and 1,08,000 dirhams in 2026. At the same time, he also warned that a fine of 20,000 dirhams would be imposed on private firms submitting false Emiratisation information.