IMPACT – MEDIUM

The Emirati government has announced that it will fine employers who do not meet the new Emiratization requirements by 2023.

Key Points:

  • Beginning in January 2023, companies that do not meet the Emiratization requirements will be required to pay 6,000 AED per month for every Emirati citizen not employed at the required level.
  • Fines are set to increase 1,000 AED every year after 2023.
  • Under the Emiratization program, companies that have more than 50 employees and have high-skilled jobs must increase the percentage of Emiratis hired 2% annually until 2026.

Additional Information: The UAE government has announced the Emiratization program to increase the number of Emirati nationals employed in the private sector by 10% in the next five years. More information regarding the UAE’s Emiratization requirement is available here.

BAL Analysis: Employers should plan ahead to ensure they meet the new employment requirements to avoid fines.

This alert has been provided by the BAL Global Practice group. For additional information, please contact berryapplemanleiden@bal.com.

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