The Ministry of Human Resources & Emiratization (MOHRE) has announced a series of amendments to its existing Emiratization framework with the goal of having at least 10% of the private sector workforce being made up of Emirati citizens by 2026. The changes introduce new provisions to motivate compliance, most notably by imposing heavy fines, and by expanding incentives for companies that meet or exceed their targets or engage in certain training activities focused on local nationals. Current minimum Emiratization rates (i.e., the percentage of the workforce made up of Emiratis) vary based on sector, ranging from 5% for insurers to 4% for banks and 2% for commercial establishments with more than 50 skilled employees. The new requirements take effect in January 2023.
The government has long struggled to attract Emiratis to the private sector and reduce its reliance on foreign workers, leading it to revise Emiratization requirements on multiple occasions. The International Labour Organization estimates that roughly 90% of the private sector labor force is composed of foreign nationals; however, the latest changes represent notably stronger requirements and harsher penalties for noncompliance, increasing over time. As such, employers should review the upcoming requirements and consider the impact on their current and future staffing.