In a major boost for nationalisation efforts in the United Arab Emirates, the Ministry of Human Resources and Emiratisation is doubling down on its nationalisation programme by warning strict action against companies that fail to complete the ‘2% nationalisation' by December 2025. The ‘2 per cent nationalisation’ in the UAE refers to the Emiratisation policy, requiring private companies (50+ employees) to increase their skilled Emirati workforce by 2 per cent annually.
As per the directive of the Ministry of Human Resources and Emiratisation, strict action will be taken against companies that do not hire nationals by December 31, starting January 1, 2026. A fine of AED 96,000 will be imposed per person for not hiring nationals, according to reports.
A monthly fine of AED 8000 will be imposed on companies that do not comply with the law. There is also the option of paying AED 48,000 in one lump sum every six months. Starting next year, the monthly fine will increase to AEB 9,000.
According to the norms, small companies with 20 to 49 employees must hire one native by the end of the year. Indigenisation is being implemented in 68 professional and technical positions in 14 sectors, including IT, real estate, education, construction, and healthcare. Companies in this category that do not hire a total of two natives by the end of the year will also be fined a huge amount.
The ministry has also warned that inspections will be intensified from January 1 to find violators. Violators can be reported to 600 590000 or through the MOHRE smart application.
Those who tamper with the indigenisation process will be fined up to AED 500,000. The fine for first-time violators is AED 100,000 and repeat offenders will be fined
AED 300,000, and third-time violators will be fined AED 500,000. The same penalty will apply even if the company understates the number of workers in order to circumvent indigenisation.
As per reports, the number of nationals working in the private sector in the UAE has increased to 1.54 lakh. Of these, 1.36 lakh were employed through the Nafiz nationalisation program. The number of companies that have employed nationals has exceeded 30,000.
According to the norms, private companies with fifty or more employees are required by law to implement indigenisation at a rate of two per cent a year. For the convenience of companies, it is also permitted to hire one per cent of nationals every 6 months (in June and December). According to the program, which will complete four years on the 31st of this month, a total of eight per cent indigenisation should be completed by adding six per cent in previous years. The target is to add two per cent next year and achieve 10 per cent indigenisation by December 2026.
