The United Arab Emirates (UAE) is a country that wants to promote the social and economic development of its citizens. In addition, it can diversify its economy beyond the oil sector. To achieve these objectives, there are a series of policies and programs by the government to promote Emiratisation UAE. That is, the incorporation of Emiratis into the labor market, especially in the private sector.
In this article, we will explain the main regulations and rules that companies have to know and comply with when hiring Emirati workers. That is, how to comply with the policies of Emiratisation UAE. We will also give you some tips and resources to facilitate the process of retaining and recruiting Emirati talent. This way, you will be able to take advantage of the benefits of having a diverse team committed to the growth of your business and the country.
Hiring Your First Emirati by 2024
The emiratisation law UAE addresses the obligations that employers have to comply with when hiring Emirati employees. You can also find all this information in the UAE labor law. Next, you will see what the Emiratisation requirements UAE are.
- Firstly, employers have to provide Emiratis with an ideal workplace. That is, providing tools and minimal training so that they can perform their functions.
- One of the most important Emiratisation rules is that a permit from MOHRE has to be obtained for the Emirati employee.
- In Emiratisation law, an employment contract must be signed with the Emirati employee.
- Pay a salary according to the rules of the UAE Wage Protection System.
- The employer has to register the UAE national in the Pension and Social Security System. Additionally, you must begin contributing within one month of the worker’s work permit being issued.
- Report any necessary modifications to the employment contract. Especially, those that may affect the eligibility requirements according to the Nafis Program.
- At the end of the employment contract, the employer must cancel the work permit.
On the other hand, according to the Emiratisation law, there are prohibitions for employers, which are:
- Deduct from the Emirates salary to benefit the support program.
- In turn, Emiratis must inform MOHRE of any practices that may violate the established provisions. Specifically, those that are in the UAE Emiratization Resolutions, thus leaving no room for unethical practices.
Understanding the 2024 Deadline
Currently, the Ministry of Human Resources and Emiratization (MoHRE) released a new UAE emiratization framework. The purpose of this is to expand your reach with these new small business guidelines. That is companies that have between 20 and 49 employees. The goal is that these companies have to hire at least one Emirati employee per year. In other words, another Emirati employee in an important position has to be added every year.
Previously, according to MOHRE, there was Ministerial Decision 279 of 2022. Which has the purpose of increasing the number of Emirati employees in the private sector. Medium-sized companies with more than 50 employees are required to maintain specific emiratization rates. To do this, you have to calculate it as a percentage of your competent workforce.
To achieve the objectives of Emiratisation UAE, companies are going to achieve an Emiratisation rate of 2%. Furthermore, each year this figure has to be increased by an additional 2%. Currently, the rate is fixed and has to increase by 2% each year. In addition, there is a minimum Dubai Emiratisation target of 10% in competent positions by the end of 2026. You have to know that these measures are to improve the participation of the Emirates in both the public and private sectors. In addition, to create better employment opportunities for Citizens of the UAE.
Getting Ready for 2025: Employing Two Emiratis
The new 2 Emiratisation law encourages small businesses in the UAE to take a proactive approach. Thus, compliance with the extensive regulations of the emiratization in Dubai can be guaranteed.
Emiratisation UAE is a central policy in the United Arab Emirates. This aims to provide Emirati citizens with greater job opportunities and professional growth in their country of origin. By encouraging companies to hire and train local talent, dependence on foreign workers can be reduced. In addition, to promote the economic development of the UAE with the new emiratization Dubai.
The regulations and the broad scope of the emiratization rules have been well-developed since January 2023. Initially, the emiratization requirements focused on the largest private companies. That is those companies that have 50 or more employees. However, a significant step by the government in the UAE saw an extension of the program to include smaller private companies. That is, those that have between 20 and 49 employees.
Under the new rules, some companies have to hire at least one Emirati citizen by 2024. In addition, you should know that the requirement will increase to two Emiratis by 2025. The decision is for specific establishments in 14 key economic sectors. For instance, financial activities, information and communications, real estate, administrative and support sectors, arts and entertainment, and more.
Finally, you have to know that the target establishments will receive a notification. This notification is through the digital channels of the Ministry of Human Resources and Emiratization. In addition, they will give you some criteria for this hiring. For instance, types of employment, work environment, geographical location, and others.
Steps to Expand Emirati Hiring Efforts
You have to know that there are several recruitment challenges when it comes to employing Emiratis. Especially for competent positions in the private sector. Most Emiratis have access to public jobs that offer better compensation. In addition, providing retirement incentives that private jobs may not be able to match.
Emiratis in the private sector are more likely to quit their jobs, the report says. Or simply accept the working conditions thanks to lower wages and cultural friction between the local population and foreigners.
However, the Emiratisation UAE government is pressuring private entities to employ locals. If a private company is lucky enough to find the ideal candidate for a position and hire them, retaining Emiratis is the real challenge. Private sector companies always want to look for Emirati talent especially to be able to stand out among competitors.
As a result, Emiratis are constantly searching for opportunities to see which is the best offer. Thanks to this, it is very difficult for private companies to retain them. In order to achieve this task, a good recommendation is to hire KinzaHR. We know about the best employee acquisition and retention strategies. Thus, as a company, you can comply with the Emiratisation UAE quotas.
Solving challenges in meeting Emiratisation requirements
The Emiratisation UAE is a revolutionary initiative for the private sector. The initiative is on the part of the government to support private sector companies and Emirati citizens. The main objective of Emiratisation is to ensure the inclusion and empowerment of companies in the UAE. Thus, companies can focus more on quickly hiring nationals.
However, the private sector faces many challenges to comply with the UAE Emiratisation, which are:
- Skills gap
- Lack of motivation
- Lack of experience.
- Language barriers
- Skill improvement
- Cultural monopoly.
All of these challenges can be overcome successfully by hiring a company that specializes in UAE Emiratisation. The best one you can find today is KinzaHR.
Kinzahr’s Approach: Partnering with Businesses for Successful Emiratisation
KinzaHR is a company from the United Arab Emirates that aims to help comply with UAE Emiratisation. That is, to the hiring of citizens of the UAE in the private sector. The company has the ability to partner with local and foreign companies to help them meet the requirements. KinzaHR offers a wide range of services, from identifying employment opportunities. In other words, we cover everything from training to skills development.
KinzaHR’s objective focuses on collaboration with companies. Specifically, to understand your objectives and needs of the Emiratisation UAE. The company is dedicated to working with companies to develop specific strategies to enable them to meet Emiratisation requirements effectively. Additionally, KinzaHR offers skills development and training services to help citizens of the UAE. Thus, you can acquire the necessary skills to be successful in the labor market.
In summary, KinzaHR’s approach to Emiratisation UAE is to partner with businesses. Thus, they can help them meet Emiratisation requirements effectively.