What UAE Companies Need to Know About the H1 Emiratisation Deadline Set by MoHRE

The Ministry of Human Resources and Emiratisation (MoHRE) in the UAE has issued a firm reminder to private sector companies with 50 or more employees: meet your semi-annual Emiratisation target by June 30, 2025, or face penalties starting July 1, 2025. This mid-year target is part of a larger national workforce plan focused on enhancing Emirati presence in the private sector and reaching a 10% Emiratisation goal by 2026.

Given the impending audits and financial penalties, UAE businesses must take decisive action now.

UAE H1 Emiratisation Requirements

The semi-goal requires a 1% rise in the number of Emirati citizens working in skilled positions, compared to the overall skilled workforce of the company. This 1% rise is determined using the count of skilled workers currently employed at the beginning of the year. It's not an option, but it's a legal obligation with significant consequences for non-compliance. Part of a larger national agenda, these rules are designed to strengthen Emirati participation in the workforce and lessen reliance on foreign labor.

Who Must Comply?

Two categories of companies fall under MoHRE’s current enforcement:

By June 30, 2025, companies with 50 or more workers must increase their Emirati-trained staff by 2% annually.
By December 31, 2025, they must reach a 7% Emiratisation target.
By the end of the year, companies with 20–49 workers in 14 important sectors are required to employ at least two Emiratis in skilled roles.

Sectors include finance, healthcare, ICT, construction, education, hospitality, logistics, manufacturing, real estate, mining, social work, and retail.

Penalties for Non-Compliance

Companies that fail to meet the mandated Emiratisation targets by the designated deadlines will incur substantial monetary fines. The severity of these penalties differs based on the type of violation and if the company has previous offenses. For every skilled Emirati vacancy that remains unfilled, a penalty of AED 42,000 (approximately USD 11,435.50) will be imposed.

If a company misses the Emiratisation deadline for the first time, it will face a fine of AED 100,000 (around USD 27,227.40). Companies that repeatedly fail to comply face rising penalties, starting at AED 100,000 (approx. USD 27,200) for the first violation, increasing to AED 300,000 for the second and AED 500,000 for any further breaches.

Employers involved in deceitful practices, like employing Emiratis officially without actual job duties, could incur penalties between AED 20,000 and AED 100,000 (USD 5,445.50 to USD 27,227.40), based on the severity of the fraud.

Small and medium-sized enterprises (SMEs) with 20 to 49 employees, particularly in key sectors, are required to meet Emiratisation objectives. Non-compliance may lead to fines between AED 96,000 and AED 108,000 (approximately USD 26,000 to USD 29,400), depending on the extent of the deficiency.

Additionally, companies must ensure that all documentation for Emirati hires remains current. If records such as pension registrations or labor contracts expire or are not properly submitted, a monthly fine of up to AED 5,000 (approximately USD 1,361.30) may be applied.

These fines serve as a stark reminder of how important it is to follow the national Emiratization policy. Active adherence not only prevents financial consequences but also supports the long-term growth of the UAE's skilled labor force.

What Qualifies as Valid Emiratisation?

For Emiratisation targets to be met, the role must be a legitimate skilled position with a minimum monthly salary of AED 4,000. The worker must possess a post-secondary education credential validated by the appropriate authorities. These positions should provide long-term career opportunities rather than acting as temporary posts for compliance reasons. MoHRE utilizes digital tools to detect non-compliant practices. This guarantees that the essence of the Emiratisation initiative, offering significant employment opportunities and career growth for UAE citizens, is preserved.

Enforcement and Legal Action

Since the Emiratisation initiatives started in 2022, over 2,200 enterprises have faced legal action for violating the program's guidelines. When faced with such circumstances, Emirati employees are encouraged to report their experiences with MoHRE using official means, including the Ministry's website, mobile app, or customer care hotline.

Support Through NAFIS

The NAFIS platform plays a significant role in the execution of the UAE's Emiratization initiative. It offers a comprehensive array of services to ensure compliance and acts as a digital connection between employers and qualified Emirati job seekers. Moreover, NAFIS provides companies with real-time dashboards that enable them to monitor their recruitment activities and monthly Emiratization contributions. Additionally, the website offers Emirati candidates wage support and financial aid, which streamlines the onboarding process and lowers hiring expenses for participating companies.

Marmoom Manpower Solutions: Your Partner in Emiratisation Compliance

Marmoom Manpower Supply is committed to supporting the UAE’s vision of a diverse and inclusive workforce. We offer tailored workforce solutions that support your company in meeting emiratization goals ethically and effectively. Whether you're getting ready for the June 30 deadline or developing a strategic national workforce plan, Marmoom is ready to guide you through every step with confidence.

References:

1.MoHRE urges private sector companies to meet Emiratisation targets for the first half of 2025 before 30 June

2.UAE to start verifying Emiratisation targets for private companies from July 1