The Ministry of Human Resources & Emiratisation (MoHRE) has warned private sector firms with more than 50 employees to meet Emiratisation goals for the first half of 2025 by June 30, or face financial penalties from July.
MoHRE restated its requirement for a 1% increase in UAE nationals occupying skilled roles within companies while maintaining the current Emiratisation levels. From July 1, the ministry will verify compliance and impose mandatory contributions on companies that fall short unless they have registered Emirati employees with a social security fund and made timely payments.
The ministry also urged citizens to report any violations via its call centre (600590000), smart app or website. This follows efforts since mid-2022 to utilise a digital inspection system in counteracting fraudulent practices. More than 2,200 non-compliant firms have been identified, and legal action is underway.
As of May, over 141,000 Emiratis were employed across 28,000 private companies. This growth reflects participation in the Nafis programme, which facilitates hiring by connecting firms to qualified UAE nationals and offers financial incentives.
MoHRE highlighted additional benefits for firms that exceed targets under the Tawteen Partners Club, including up to 80 per cent reductions in service fees and preferential access to government procurement.
Market context
Emiratisation is central to the UAE’s workforce strategy. The country has mandated an annual 1% growth in Emirati skilled roles in companies with 50 or more employees since 2021. Around 53% of Emiratis in the private sector remain in roles that lack flexibility, signalling wider systemic issues despite a 268% rise in employment levels since 2021.
With the June 30 deadline approaching, private firms must urgently audit skilled workforce composition and Emirati employment levels. Non-compliance will trigger fines and potential seating removal from government contracts. Firms that miss the target risk financial charges as MoHRE intensifies its enforcement cycle in H2.
