Month: November 2022

Emiratization Not Applicable to Free Zones . 

1. 1. An important clarification about the Emiratization initiative for the private sector in the U.A.E. At present, the Emiratization requirement applies to the mainland companies only.
   2. This means that free zone companies are excluded.
   3. This is because, the Emiratization initiative is being mandated by and is subject to the U.A.E. Ministry of Human Resources and Emiratization which is otherwise referred to as MOHRE.
   4. MOHRE, on the other hand, is the governing authority for the mainland companies.
   5. Free zone companies – are subject to their own free zone authorities, which serve an equivalent function to that of MOHRE.
   6. Currently, the legislative authority, which establishes the requirement of Emiratization is Ministerial Resolution No. 279 of 2022.
   7. It is this Resolution, which sets out the Emiratization quota, timeline for its implementation and corresponding penalties.
   8. This Resolution 279, applies, expressly, to establishments or companies, which are registered with MOHRE. This includes only mainland companies, and not free zones.
   9. Should free zone companies wish to adopt similar Emiratization initiative, they can do so by introducing similar regulations, as those mandated by MOHRE.
   10. Until such time, the current Emiratization requirements applies only to the mainland companies.

Emiratization. 

1. 1. 1. 1. 1. 1. • • The Emiratization is being introduced into the U.A.E. private sector as of January 2023.
                    • Emiratization is a government initiative to encourage meaningful and efficient employment of Emiratis in the UAE.
                    • This is in line with the Ministerial Resolution No. 279 of 2022, which was issued in June of 2022.
                    • As per this Resolution, the government aims to increase employment of Emiratis in the private sector by 2% annually.
                    • With the objective of reaching 10% increase by 2026.
                    • The requirement for the number of Emiratis to be hired, depends on the number of skilled workers in the company
                  • -Companies with 51 – 100 skilled workers – should hire 2 Emiratis.
                  • -Those with 101 – 150 skilled workers – must hire at least 3 Emiratis.
                  • -And those companies who have more than 151 skilled workers – should hire 1 Emirati for every 50 skilled workers.
                  • The deadline for compliance is January 1, 2023.
                  • After which penalties will be imposed.
                  • The penalties start with AED 6,000 per month for every Emirati, who has not been employed.
                  • And increase by additional AED 1,000/per month, every year.