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The Ministry of Human Resources and Emiratization provided a reminder to employers of 50 or more workers to meet their Emiratization targets for the first half of 2024, as compliance monitoring began as of July 1.
Key Points:
Additional Information: The current target is a 1% increase in the number of Emiratis in skilled jobs at companies with 50 or more employees for the first half of 2024. Emiratization targets require these employers to increase the number of Emirati employees in skilled positions by 1% every six months, ultimately achieving a 2% Emiratization by the end of each year. Employers are expected to achieve a 10% Emiratization rate by the end of 2026.
This alert has been provided by the BAL Global Practice Group.
Copyright © 2024 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries, please contact copyright@bal.com.
Indian nationals are now required to apply for a pre-approved entry permit to obtain a visa on arrival in the United Arab Emirates.
BAL Analysis: Indian nationals are advised to apply for a pre-approved entry permit before travel to the UAE. Passports and other documents accepted for entry must be valid for a minimum of six months from the arrival date. The issuance of the visa on arrival is at the discretion of the General Directorate of Residency and Foreign Affairs. BAL will provide further updates as information becomes available.
The Emirati government has provided additional details on the new Gulf Cooperation Council tourist visa as well as announced a new gaming visa to boost tourism.
Additional Information: UAE’s Ministry of Foreign Affairs also recently announced an update to its visa exemption policy that allows nationals from 87 countries to enter without a pre-entry visa. The full list of eligible countries can be found here. The government has undertaken several measures recently to expedite and attract foreign travel.
BAL Analysis: The announcement of a Schengen-style tourist visa for the GCC member states is a highly anticipated development. Foreign nationals are currently required to obtain separate tourist visas to travel to these countries, and the governments hope that a unified tourist visa will simplify travel for its citizens and boost each nation’s economies.
The Emirati government has reached an agreement with the Republic of Armenia on a mutual visa-free policy.
Additional Information: The Emirati government has introduced various measures recently to increase inbound travel from foreign tourists. A separate mutual visa-free travel agreement with Uzbekistan was recently announced. The agreement will allow citizens holding passports with at least six months of validity to enter and stay for a period of up to 30 days per visit.
BAL Analysis: The new agreements are designed to help foster stronger ties and make exploration and cultural exchange between other countries more accessible. The Emirati government also hopes to create opportunities for increased tourism to stimulate economic growth.
The UAE’s General Directorate of Residency and Foreigners Affairs has suspended the employment sponsorship visa transfer option across free zones for companies.
Key Points:
Additional Information: There are no changes for a new residence visa application, and the same in-country visa amendment and change status process is still applicable. The suspension applies only to visa transfer applications for company employees operating from free zone to free zone.
BAL Analysis: This suspension creates extra steps in the visa application process. Employees should expect longer processing times before they can begin work, and employers should expect to pay additional fees. Authorities have not yet announced whether the suspension is a temporary or permanent change. BAL will provide updates as information becomes available.
IMPACT — MEDIUM
The Emirati government has announced that it will expand its Emiratization requirements to small businesses in 2024.
Background: Previously, Emiratization targets only required employers with 50 employees or more to increase the number of its Emirati employees in skilled positions by 1% every six months, ultimately achieving a 2% Emiratization by the end of each year. Employers are expected to achieve a 10% Emiratization rate by the end of 2026.
BAL Analysis: The Emirati government announced the Emiratization program expansion to increase the number of Emirati nationals employed in the private sector. Employers should plan ahead to ensure they meet the new employment requirements to avoid applicable fines.
This alert has been provided by the BAL Global Practice Group. For additional information, please contact berryapplemanleiden@bal.com.
Copyright © 2023 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries, please contact copyright@bal.com.
The Emirati government has extended the deadline for employers with 50 or more employees to meet the semiannual Emiratization requirement.
Background: Emiratization targets require employers with 50 or more employees to increase the number of Emirati employees in skilled positions by 1% every six months, ultimately achieving a 2% Emiratization by the end of each year. Employers are expected to achieve a 10% Emiratization rate by the end of 2026.
BAL Analysis: Emirati authorities delayed the deadline to meet the Emiratization requirement in consideration of the upcoming Eid Al Adha holiday. Employers should plan ahead to ensure they meet the new employment requirements to avoid applicable fines.
The Emirati government has ended its grace period policy for foreign nationals who overstay their visitor visa in Dubai.
Additional Information: Dubai is the last emirate to remove the 10-day overstay grace period. All visitor visas holders must leave the country or extend their visa to avoid overstay fines. This regulation does not affect nationalities eligible for 30- or 90-day visas on arrival.
BAL Analysis: The Emirati government ended the 10-day overstay grace period for visitor visas in Dubai to align its policies with the rest of the country. Visitor visa holders who need to stay in the country beyond their visa’s validity should apply for an extension to avoid fines and complications.
The Emirati government has announced that it will fine employers up to 500,000 AED (about US$136,000) for not meeting Emiratization requirements.
Background: Emiratization targets require employers with 50 employees or more to increase the number of its Emirati employees in skilled positions by 1% every six months, ultimately achieving a 2% Emiratization by the end of each year. Employers are expected to achieve a 10% Emiratization rate by the end of 2026.
BAL Analysis: Employers should plan ahead to ensure they meet the new employment requirements to avoid applicable fines.
Emirati authorities recently implemented the Wage Protection System for companies registered in the Dubai Multi Commodities Center Free Zone.
Additional Information: Emirati authorities will not fine companies that do not comply with this requirement for 2023; however, beginning in 2024, companies that do not pay their employees through the WPS will be fined.
BAL Analysis: Emirati authorities will require companies registered with the DMCC to pay employees through the WPS to ensure foreign workers’ wages are protected.