The UAE government has introduced important changes to its employment laws to provide more job opportunities for Emirati nationals. Known as the Emiratisation Law 2024, these laws are designed to increase the number of UAE citizens working in the private sector. For companies, it is vital to understand and follow these laws to stay compliant and support the country’s goals.
This blog will explain the Emiratisation Law 2024, what it means for businesses, and how you can ensure that your company follows the rules.
What Is the Emiratisation Law?
The Emiratisation law for private companies is an initiative taken by the Ministry of Human Resources and Emiratisation (MoHRE), which encourages companies to hire more Emirati citizens. The law sets specific targets or quotas for the number of UAE nationals employed within a company. This applies to various industries, from finance and healthcare to technology and construction.
The main goal of Emiratisation is to create job opportunities for Emiratis and reduce reliance on foreign workers. The law applies not only to companies in the main UAE areas but also to businesses operating in free zones. With the new updates, even free zone companies are now required to follow Emiratisation Tawteen’s new rules in the UAE, which helps ensure fairness across all sectors.
Key Features of Emiratisation Law 2024
Let’s break down some of the key aspects of the Emiratisation Law 2024:
- Hiring Quotas: Companies with 50 or more employees must meet specific Emiratisation targets, which means they need to hire a certain number of Emiratis each year.
- Freezone Companies Included: The rules now extend to Emiratisation law for freezone companies, meaning businesses in free zones must also hire Emiratis to meet the same quotas.
- Penalties for Non-Compliance: If a company does not meet the targets, it may face penalties such as fines or restrictions on renewing work permits.
- Support for Small Businesses: Small and medium-sized businesses are given extra help to meet the Emiratisation requirements. This includes access to government programs that offer training, financial support, and more.
These updates are aimed at making the process of hiring Emiratis smoother for companies, while still meeting the overall goals set by the government.
Why Is Emiratisation Important for the UAE?
The Emiratisation in the private sector is a crucial part of the UAE’s long-term economic plan. The goal is to provide more job opportunities for Emiratis and ensure that they have a stronger role in the country’s workforce. This will help boost the local economy and reduce the reliance on foreign workers in various industries.
For businesses, following the Emiratisation law for the private company means being a part of this positive change. It can also offer many benefits, including:
- Attracting Government Contracts: Companies that follow Emiratisation laws may be more likely to secure government contracts or deals with government-backed organizations.
- Building a Positive Reputation: By hiring Emiratis, businesses show they are aligned with national goals and contribute to the local community.
- Access to Government Support: Companies that meet their Emiratisation targets can receive government incentives such as subsidies for training and development.
Targets for Emiratisation and Goals for 2025
The UAE government has set ambitious goals for the Emiratisation target of 2025. By this year, companies in all sectors are expected to increase their Emirati workforce. This includes both private companies and those operating in free zones.
Businesses are given time to adjust, with annual targets and government support helping them meet these quotas. The process is structured so that businesses can plan for these changes gradually.
Companies that plan and make sure they are on track with their Emiratisation hiring targets will find it easier to meet future goals, avoid penalties, and enjoy the benefits of being part of this national movement.
How Businesses Can Prepare for the Emiratisation Law
Adapting to the Emiratisation Tawteen new rules in the UAE might seem difficult at first, but businesses can take several steps to ensure they comply with the new requirements:
- Understand the Specific Requirements: Companies need to know exactly how many Emiratis they need to hire. This number depends on the size and industry of the business.
- Work with Government Platforms: The Tawteen platform is designed to connect companies with qualified Emirati candidates. This can be a great resource for businesses looking to hire local talent.
- Provide Training and Development: Many companies may need to train Emirati workers to ensure they are ready for their new roles. Investing in training can help businesses meet Emiratisation requirements while giving Emiratis valuable skills for the future.
- Keep Track of Progress: Regularly check how well your company is doing with meeting the Emiratisation targets. This helps prevent surprises when it comes time to renew work permits or pay penalties.
How Freezone Companies Are Affected
Previously, businesses in free zones had more flexibility regarding Emiratisation. However, the updated Emiratisation law for Freezone companies means that Freezone businesses now have to follow the same rules as mainland companies. This change aims to make Emiratisation more consistent across the UAE.
Freezone companies should take steps now to ensure they understand the new rules and adjust their hiring strategies.
How ThinkBiz Can Help
The Emiratisation Law 2024 might seem complicated, but ThinkBiz can guide you through the process. As a leading business setup service provider in the UAE, ThinkBiz offers solutions to help businesses comply with Emiratisation requirements.
ThinkBiz can help your company create a clear hiring plan, find qualified Emiratis, and stay on track with the Emiratisation Tawteen new rules in the UAE. With ThinkBiz’s support, your business can successfully meet its Emiratisation targets while focusing on growth.
Lets Wrap!
The Emiratisation law for private companies is an important initiative that aims to increase job opportunities for Emirati citizens and reduce the reliance on foreign workers. By following the Emiratisation Tawteen new rules in the UAE and working towards the Emiratisation target 2025, companies can play a key role in the UAE’s vision for the future.
Whether you’re a private company or a free zone business, ThinkBiz is here to help guide you through the process of compliance and make sure your business is on track to meet all the requirements.