Emiratisation Requirements 2025: Complete Compliance Guide

Emiratisation is a UAE government policy requiring private sector companies to employ a certain percentage of UAE nationals in skilled positions. The program aims to:

• Increase Emirati participation in the private sector
• Develop local talent and skills
• Reduce dependence on expatriate workforce
• Build a sustainable knowledge-based economy

Key Features

• Mandatory quotas for companies with 50+ employees
• Specific requirements for SMEs with 20-49 employees
• Applies only to skilled positions (job levels 1-5)
• Incremental targets increasing annually
• Financial support through NAFIS program

Companies with 50+ Employees

All private sector companies with 50 or more employees registered with MOHRE must meet Emiratisation targets.

Calculation base: Total number of skilled workers in the company

Companies with 20-49 Employees

Small and medium enterprises (SMEs) with 20-49 employees in designated sectors must also comply with specific requirements.

Designated Sectors for SME Compliance

1. Information & Communications Technology (ICT)
2. Financial Activities & Insurance
3. Real Estate
4. Professional, Scientific & Technical Activities
5. Administrative & Support Services
6. Arts & Entertainment
7. Mining & Quarrying
8. Manufacturing (Transformative)
9. Construction
10. Wholesale & Retail Trade
11. Transportation & Storage
12. Accommodation & Food Services
13. Education
14. Healthcare & Social Work

Exemptions

• Free zone companies (DIFC, ADGM, JAFZA, etc.)
• Companies with fewer than 20 employees (for SME rules)
• Government and semi-government entities (have own targets)

Large Companies (50+ Employees)

SMEs (20-49 Employees in Designated Sectors)

Formula

Emiratisation Rate = (Number of Emirati Skilled Employees / Total Skilled Employees) x 100

What Counts as a "Skilled" Position?

Emiratisation quotas apply to skilled workers only:

Job Levels Included

Job Levels Excluded

Example Calculation

Company Profile:

• Total employees: 200
• Skilled employees: 150
• Current Emirati skilled employees: 9

Current rate = (9 / 150) x 100 = 6%

For 7% target (June 2025):
Required Emiratis = 150 x 0.07 = 10.5 -> 11 employees
Need to hire: 11 - 9 = 2 more Emiratis

For 8% target (December 2025):
Required Emiratis = 150 x 0.08 = 12 employees
Need to hire: 12 - 9 = 3 more Emiratis

Financial Penalties

Escalating Penalty Structure

Penalties have increased over time:

Additional Consequences

• Company Classification Downgrade: Non-compliance for 2+ years results in Category 3 classification
• Restricted Services: Limited access to MOHRE services
• Work Permit Blocks: May affect ability to hire new employees
• Reputational Impact: Public listing of non-compliant companies

What Constitutes Fictitious Employment?

MOHRE actively monitors for:

• Ghost hires: Emiratis on payroll but not actually working
• Temporary hires: Hiring only during audit periods
• Fake positions: Creating roles that don't exist
• Wage manipulation: Paying below market rates to "check the box"

Detection Methods

MOHRE uses:

• AI-powered monitoring systems
• WPS salary data analysis
• Random inspections
• Whistleblower reports
• Data cross-referencing

Penalties for Fictitious Employment

Between 2022-2025, MOHRE flagged over 2,200 companies for non-compliant Emiratisation practices.

NAFIS (National Programme for Emiratis in the Private Sector) offers significant support for companies hiring Emiratis:

Financial Benefits

How to Access NAFIS Benefits

1. Register your company on the NAFIS portal
2. Post job vacancies through the platform
3. Hire qualified Emirati candidates
4. Apply for salary support and benefits
5. Maintain compliance with program requirements

1. Early Recruitment Planning

• Start hiring before deadlines
• Build pipeline of Emirati candidates
• Partner with universities and NAFIS

2. Genuine Integration

• Create meaningful roles
• Offer competitive salaries
• Provide career development
• Foster inclusive workplace culture

3. Retention Focus

• Competitive compensation packages
• Clear career progression paths
• Training and development programs
• Mentorship opportunities

Grace Period for Resignations

If an Emirati employee resigns unexpectedly:

• Grace period: 2 months to find replacement
• No immediate penalty: If replacement hired within grace period
• Documentation required: Must show good faith effort to replace

Compliance Checklist

Monthly

• Review current Emiratisation rate
• Verify Emirati employee data in MOHRE
• Check WPS compliance for Emirati employees
• Monitor any resignations

Before Deadlines (June/December)

• Confirm Emiratisation rate meets target
• Verify all data is accurate in MOHRE
• Document any grace period situations
• Prepare for potential audits