In the UAE, the government has been implementing new rules and initiatives aiming to attract professionals from many other countries. Recently, the authorities have announced the implementation of a new set of benefits to boost the Emiratisation rates significantly. In this way, it will be possible to boost the number of UAE citizens in private sector establishments in the UAE.
In this article, you will learn everything you have to learn about the new Emiratisation rule that will benefit citizens. It will include a variety of benefits, including salary support, pension support, child support, discounted service fees, and many more. However, it will also comes with a new penalty rule for non-compliance with Emiratisation rules that you must be aware of. Let us observe:
- What exactly is this new Emiratisation rule in the UAE?
- How many elements does the new Emiratisation rule include?
- What are the discounts and benefits that Emirati citizens can enjoy?
- What are the new fines and penalties for UAE private sector companies?
- Other details you need to know about the new Emiratisation rule in the UAE
- How can Connect Resources help you get more information about Emiratisation?
1. What exactly is this new Emiratisation rule in the UAE?
A few weeks ago, the UAE Cabinet established a set of incentives to increase Emiratisation rates in the private sector. As a matter of fact, this is one of the initiatives that the Cabinet has recently implemented for many reasons. The most important reason is that these initiatives will help attract talent from many countries and benefit the UAE’s economy and position.
The government is ensuring that Emiratis remain an active part of the workforce by introducing this new UAE scheme. This new Emiratisation rule is a federal scheme that consists of resolutions that are part of Nafis. In other words, the main objective of it is to boost or increase the number of UAE citizens working in private sector companies/establishments.
According to the Vice-President and Prime Minister of the UAE and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum, there is a minimum rate that the Cabinet has set. In the country, there will be a minimum Emiratisation rate of 2 percent on an annual basis. Also, it will vary from high-skilled jobs in establishments having more than 50 workers.
As a result, the goal is to increase this rate to 10 percent by 2026, which will create more job opportunities in the country. More precisely, there will be more than 12,000 job opportunities on an annual basis for citizens who work in all economic sectors and industries. Now, it is important for you to know every element that this new Emiratisation rule will include, including its benefits, discounted fees, penalties, and more.
2. How many elements does the new Emiratisation rule include?
As we previously mentioned, the UAE Cabinet, chaired by His Highness Sheikh Mohammed bin Rashid Al Maktoum, has implemented new resolutions. These resolutions, which consist of incentive packages, aim to enhance the participation of Emirati talents in private sector companies and establishments. It is also important to highlight that these resolutions come within Nafis, a vital federal program to facilitate the private sector employment of UAE citizens.
This new Emiratisation scheme will involve many elements you should learn about, like benefits, penalties, and more. When we talk about the benefits of the new rule, we refer to factors like the following:
- Big discounts on service fees.
- Salary support.
- Pension support.
- Child support.
However, the new Emiratisation rule will also include new penalty norms for non-compliance with the new rule in the UAE. Below, you will find more detailed information about each of these elements that the UAE government announced.
3. What are the discounts and benefits that Emirati citizens can enjoy with the new Emiratisation rule?
Just like we mentioned before, the new Emiratisation rule consists of benefits and penalties, but now, we will talk about the benefits. Firstly, you should know that there will be financial support for Emiratis in different situations. In other words, they will be able to receive salary support, pension support, and child support. They will also get massive discounts on service fees, which you can find below.
3.1. Salary support
One of the most favorable elements that UAE citizens will be able to receive with this new scheme is Emirati salary support. According to the new rule, all UAE citizens working in private sector establishments will receive 1-year salary support. This type of financial support can only be for up to AED 8,000 per month during training.
On the other hand, this salary support benefit of the new Emiratisation rule also includes financial support for university graduates. Therefore, they can receive up to AED 5,000 per month for up to 5 years. This benefit will help them support themselves financially while looking for job opportunities in any emirate or location in the UAE.
Furthermore, the new program in the country will not only help employees and university graduates when it comes to financial terms. This scheme will also benefit Emirati coders, accountants, and nurses working in the UAE by providing them with financial support as well. Therefore, they will be able to get this support in addition to their existing salaries.
3.2. Pension support
Another excellent element that will benefit Emirati staff is the pension support that the new Emiratisation rule includes and offers. It will provide a subsidized 5-year government-paid contribution on the company’s behalf against the cost of pension plans for Emirati employees. As a result, this benefit will not only be favorable for employees but also for companies or firms.
In case you are a business owner running a company in the UAE, you will be able to save more money. This new rule will significantly benefit your company as well as your employees since they will get this financial support from the government on your company’s behalf.
However, it is essential that your company stays compliant with this new rule in order to get this benefit instead of facing the penalties it comes with. Therefore, in case you need to get more information about this new and important scheme, make sure to contact our specialists.
3.3. Child support
The last benefit related to financial support for Emiratis working in private sector establishment is child support. More precisely, Nafis will provide at least AED 800 per child on a monthly basis and a maximum of AED 3,200. In this way, Emiratis who work in the private sector will be able to financially support their children in any situation.
3.4. Massive discounts on service fees
Besides the benefits we previously mentioned, the new Emiratisation rule will also involve certain incentives for UAE private sector companies. For example, one of those incentives for companies that exceed their Emiratisation targets is an 80 percent reduction in service fees. Keep in mind that these are the service fees of the MOHRE (Ministry of Human Resources and Emiratisation).
On the other hand, you should know that this new discount will be only offered to certain firms operating in the private sector. More precisely, it is for companies that accomplish major achievements related to the recruitment and training of Emirati citizens.
4. What are the new fines and penalties for UAE private sector companies?
The new Emiratisation rule will not only include benefits and discounts on service fees but also penalties for non-compliance. In case a private sector firm does not follow the rules to employ a 2 percent Emirati workforce, it will have to pay an AED 6,000 fine on a monthly basis. This penalty also applies to all non-compliant companies in the private sector, and it will come into effect on January 2023.
Nonetheless, it is imperative to know that this amount will increase to AED 1,000 per year if companies stay non-compliant. On the other hand, the UAE Cabinet has adopted resolutions toward this effect. All firms operating in the private sector will have to pay serious penalties in case they fail to meet the new Emiratisation criteria.
Moreover, the Minister of Human Resources and Emiratisation, Dr. Abdulrahman Al Awar, also stated something important about this new scheme. According to Al Awar, private companies with 50 or more employees should have a 2 percent Emirati workforce in high-skilled jobs to reach 10 percent of the quota in 5 years.
5. Other details you need to know about the new Emiratisation rule in the UAE
Apart from the information we previously provided, you should also be aware of other details of the new Emiratisation rule. For example, below you will find interesting data that was discussed by UAE authorities when announcing the new scheme.
5.1. About the Emiratisation drive
The UAE authorities revealed the total number of new Emiratis who started to work in the private sector since the launch of Nafis in September 2021. Until March 2022, the amount raised to 5,558, in the meantime, the number of firms that hired new workers increased to 1,774. Therefore, Nafis is now offering all of the benefits discounts on service fees, and financial support to Emiratis.
Furthermore, Nafis will ensure the efficiency of the Emiratisation approach, according to Ghannam Al Mazrouei, Secretary-General of the Emirati Talent Competitiveness Council. He also mentioned that Nafis will offer significant incentives to private sector companies that achieve substantial milestones in terms of hiring and training Emirati citizens.
According to the Nafis data, the number of citizens who are registered on the platform reached 25,876. These citizens are also eligible to benefit from the new Emiratisation scheme and Nafis’ initiatives. Meanwhile, the number of job opportunities on the platform increased to 2,524. Lastly, the number of beneficiaries increased to 4,074 individuals.
Nafis also developed other bundles of initiatives in order to accomplish the goal of boosting the efficiency and competitiveness of UAE citizens. All of them focused on training programs, professional development opportunities, and similar ones.
6. How can Connect Resources help you get more information about Emiratisation?
Staying compliant with new rules is key to enjoying their benefits and preventing legal issues in the short or long term. Having a reliable partner like Connect Resources can help you receive the latest news and get tips to stay compliant. Additionally, in case you do not fully understand how the new regulations work, our agency can always provide you with the best guidance you could ask for.
On the other hand, in case you are running a company in the UAE, getting our HR services will help you boost it. For example, by requesting our HR consultancy services, we can provide you with guidance on several matters, including the latest news. At the same time, we offer the most excellent HR outsourcing solutions to ensure your business’ compliance and productivity.
Moreover, we can help you expand your business to other Middle East countries and help your brand become more profitable. We are proud to let you know that Connect Resources has presence in several countries across the Middle East. We are currently in:
Do you know how you can stay up to date with the latest news in the United Arab Emirates? By getting in touch with Connect Resources, you will be able to receive assistance and guidance on the most recent announcements made by the UAE government. You can contact our team by calling us at +971 43 316 688 or sending an email at contact@connectresources.ae.
Do you desire to start working and boost your career in the UAE? By visiting thetalentpoint.com, you can easily accomplish these goals and find the best job offers in the country. Furthermore, you can get in touch with recruitment specialists by sending an email to contact@thetalentpoint.com. If you require additional support, The Talent Point’s team is available to help you find the solutions you need.
