Immigration
UAE | Emiratisation update summary
Summary
In line with the UAE Cabinet’s Resolution No (19/5m) of 2022 to revise the mechanism for achieving Emiratisation targets by 2026, private companies are reminded about the need to ensure they meet their Emiratisation rates every six months. Companies that fail to meet Emiratisation rates will be required to make bi-annual contributions and the Ministry of Human Resource and Emiratisation (MOHRE) has set a deadline of 30 June 2024 to meet Emiratisation rates for the first half of 2024.
The Detail
Companies operating in the UAE Mainland employing 50 or more workers, must meet their Emiratisation rates bi-annually, to achieve an overall Emiratisation target of 10% by the end of 2026. Those who fall short will need to make contributions accordingly.
Whilst Mainland establishments are required to achieve a 6% Emiratisation rate by the end of 2024, companies must ensure that at least 5% of their skilled workforce comprises of Emirati nationals by 30 June 2024 (and the remaining 1% by the end of this year). Those establishments that do not comply will risk paying ‘financial contributions’, and this will be enforced from 1 July along with the Ministry starting to monitor companies’ compliance.
Companies that fail to meet the targets will face monthly contributions of AED 8,000 for each unfilled Emirati position this year, totalling AED 48,000 to be paid within the first six months and the remaining AED 48,000 to be paid by the end of the year (total of AED 96,000 annually). The contribution amounts for companies that violate the Emiratisation scheme will be calculated and enforced starting from 1 July 2024. Additionally, contribution amounts for companies that do not comply with the scheme in 2022 and 2023 will continue to be collected; this will be stated in Tawteen reports shared by the MOHRE by email with the registered authorised signatory, or available on the company’s MOHRE’s app.
What this means
By 30 June 2024, companies must have 5% Emirati nationals in their skilled workforce and work towards achieving an additional 1% target by year end. Failure to pay penalties on time may result in additional administrative penalties and the inability to sponsor expatriates resulting from portal blocks. Companies are categorised based on their adherence to Emiratisation, and consistent non-compliance may lead to the organisation being downgraded to category 3, resulting in higher work permit charges.
How we can help
We understand that for many companies this will require careful workforce planning. We can help to:
● Advise on your Emiratisation targets and how to ensure compliance;
● Conduct impact assessments based on your existing employee population;
● Keep you updated on evolving requirements in the region, ensuring compliance with government announcements and Immigration regulations.
Contact us
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Anir Chatterji
EMEA Immigration Partner
Rekha Simpson
Director, Middle East Immigration
Ananth Prasad
Manager, Middle East Immigration