New Emiratisation programme in the UAE: fines, discounts, benefits

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Emiratisation measures are only for private sector companies.

The UAE cabinet has adopted a series of provisions called NAFIS to boost the emiratisation rate (the percentage of Emiratis) in private sector establishments.

What is the new emiratisation rate for private sector companies?

The minimum emiratisation rate has been set at 2% per annum for highly skilled jobs. This only applies to establishments with more than 50 employees. The objective of the Emirates is to increase this rate to 10% by 2026. This will eventually create more than 12,000 job opportunities per year for UAE citizens in all economic sectors.

From January 2023, companies that do not follow the new rules will have to pay a fine of AED 6,000/month for each vacancy that is not filled by an Emirati.

Example: If your Emirati quota is 10 and you have only recruited 7 Emiratis you will have to pay a monthly fine of AED 18,000 = 3 (vacancies) * AED 6,000.

Massive cuts in service charges

An 80% reduction in the Ministry of Human Resources and Emiratisation’s service fees is also envisaged. This reduction will be offered only to companies that “make major achievements in recruiting and training Emirati citizens”.

Wage support

The NAFIS scheme offers a wage support programme for Emiratis. They will be offered a one-year salary support of up to AED 8,000 per month during their training. University graduates will receive a monthly stipend of up to AED 5,000 for five years.

The programme offers Emirati coders, nurses and accountants additional support to their basic salary.

Retirement assistance

The NAFIS programme provides a five-year grant from the government on behalf of the company to cover the cost of retirement plans for Emirati staff.

Family allowances

NAFIS also offers a monthly subsidy of AED 800/child/month – up to a maximum of AED 3,200 per month – only for Emiratis working in the private sector.

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