Emiratization (Tawteen in Arabic) is an initiative by the government of the United Arab Emirates to employ its citizens in a meaningful and efficient manner in the private sector. It aims to increase the number of Emiratis in the job market and their contribution to the economy.
Increasing the number of UAE nationals working in the private sector has long been an objective of the UAE government. However, recently the latter has increased its efforts in this matter and has introduced new quotas (effective January 1st 2023), and has even imposed fines for non-compliant companies.
Who does Emiratization apply to?
The new Emiratization rules apply to all employers falling under the jurisdiction of the Ministry of Human Resources and Emiratization. This means that Free Zone Companies are excluded from these new requirements.
The UAE‘s new Ministerial Decision (Ministerial Decision No. 279 of 2022) has set a minimum Emiratization rate of 2 percent annually from high-skilled jobs in establishments having more than 50 employees.
The aim is to raise this rate to 10 per cent by 2026. This will create more than 12,000 job opportunities annually for citizens in all economic sectors.
Consequences for non-compliance?
From January 2023 onwards, non-compliant companies will have to pay an amount of 6,000 AED per month (72,000 AED yearly) for every citizen vacancy that has not been filled.
The amount will be increased by 1,000 AED per month every year against companies that do not comply with the Emiratization rules.
The benefits of Emiratization
This initiative will have a positive impact on the UAE, as it promotes the inclusion of the Emiratis in their country’s economic growth.
In a country that is always growing and evolving, it is important to ensure that its citizens are a part of its growth and that they play an active role in it.