As part of the UAE’s ongoing commitment to integrating Emirati nationals into the private sector, significant updates to the Emiratisation policy (as amended) went into effect on January 1, 2025. These changes build on the framework established in 2024 and reflect the government’s dedication to fostering a more inclusive and sustainable workforce. Below are the key updates for 2025 and how they differ from the requirements in 2024.
At a Glance
| Aspect | 2024 Requirements | 2025 Requirements |
| Scope for Smaller Companies (20-49 employees) | Hire at least one Emirati | Hire at least two Emiratis |
| Penalty Per Unmet Quota | AED 96,000 (AED 8,000 p.m. for each Emirati position not filled) | AED 108,000 (AED 9,000 p.m. for each Emirati position not filled) |
| Annual Target for Large Firms | Maintain a 2% annual increase | Continue with a cumulative target of up to 10% by 2026 |
Key Updates for 2025
Expanded Scope for Smaller Companies:
- In 2024, private sector companies with 20 to 49 employees were required to hire at least one Emirati national.
- For 2025, this requirement increases to two Emirati nationals, emphasizing the UAE’s focus on creating opportunities in small and medium-sized enterprises (SMEs).
Higher Penalties for Non-Compliance:
- The financial penalty for failing to meet Emiratisation quotas will rise from AED 96,000 per unmet quota in 2024 to AED 108,000 in 2025.
- The administrative fines for circumventing the Emiratisation requirements shall be AED 20,000 up to a maximum of AED 100,000.
- Penalties will be calculated annually and collected at the start of the following year (e.g., non-compliance in 2025 will result in penalties due in January 2026).
Ongoing Annual Targets for Larger Companies:
- Companies with 50 or more employees must continue achieving a 2% annual increase in Emiratisation of skilled roles, aiming for a cumulative target of 10% by 2026.
Impact and Benefits
The updated Emiratisation policies are expected to create a multitude of jobs annually for UAE nationals across the specified sectors listed in Emiratisation Policy. This initiative provides substantial employment opportunities and encourages local talent development, particularly in small and medium-sized enterprises (SMEs) and start-ups.
These developments underscore the UAE’s commitment to nurturing local talent and fostering a more inclusive labour market. Companies operating in the UAE must stay informed about these changes to ensure compliance and contribute positively to national development goals.
Businesses that align with these requirements contribute positively to national development goals and can benefit from government incentives such as wage subsidies, tax benefits, and training support.
At Al Midfa & Associates, we are committed to helping our clients navigate these regulatory changes seamlessly. If you have any questions or require assistance with compliance strategies, please do not hesitate to reach out to us here.