UAE announces extension for private sector companies to meet Emiratization targets

The UAE announced Tuesday it would extend the deadline for Emiratization targets for private sector companies.

The deadline for meeting semi-annual Emiratization targets was extended from June 30 to July 7, according to the Ministry of Human Resources and Emiratization (MoHRE).

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Companies that do not satisfy the employment requirements by the extended time period will reportedly face an $11,435 (AED 42,000) fine for each UAE national not employed from July 8.

MoHRE said this decision was taken since the original deadline fell during the Eid al-Adha holiday.

The UAE mandated that by January 1, 2023, companies with more than 50 employees must have ensured that at least two percent of their staff are UAE nationals under a government drive to encourage more citizens to enter the sector.

The UAE hopes to achieve a one percent semi-annual Emiratization growth.

“As the Ministry is committed to achieving its objectives of creating a competitive job market for UAE nationals and developing their skills through more collaboration with the private sector, we decided allowing more time for companies to comply with the decision and avoid relevant penalties,” MoHRE said in a statement. “We call on companies to take advantage of the extended deadline to reach their targets.”

Over 10,500 Emiratis have joined the private sector in the first three months of 2023, according to an earlier MoHRE report, marking an 11 percent increase in UAE nationals joining the workforce compared to the first quarter of 2022.

The latest additions reportedly bring the total number of Emirati employees in the private sector to over 66,000 in over 16,000 companies.

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