The UAE government has made Emiratization — the employment and development of UAE Nationals in the private sector — a top priority for building a sustainable, knowledge-based economy. The Ministry of Human Resources and Emiratization (MoHRE) sets annual targets for Emiratization across private-sector companies, especially those with 50 or more employees, and monitors compliance rigorously.
For businesses operating in the UAE Companies, achieving Emiratization targets brings not just regulatory compliance but significant financial, operational, and strategic benefits, while failure to meet targets can result in hefty penalties and restrictions.
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Why Emiratization Matters
The UAE Vision 2031 and National Employment Agenda aim to increase Emirati participation in the private sector, reduce dependence on expatriate labor, and ensure Emiratis have access to meaningful, sustainable careers. Emiratization is also a key component of the Projects of the 50 and the UAE’s long-term economic diversification strategy.
Benefits of Achieving Emiratization Targets
When a company meets or exceeds its Emiratization quota, it unlocks these valuable advantages:
Top MoHRE Company Classification (Category 1)
Companies that meet their targets are placed in Category 1 — MoHRE’s highest company rating.
Learn more about MoHRE’s classification system on the MoHRE website.
See the related Cabinet Resolution.
Download the MOHRE Awareness Package PDF.
Lower Government Fees
Category 1 companies benefit from reduced work permit fees, paying as little as AED 250 per permit, compared to up to AED 3,450 for Category 3 companies. Over time, this represents major cost savings, especially for businesses hiring large workforces.
Faster Processing Times
Higher-category companies get priority for government transactions, including work permit applications, visa renewals, and other MoHRE services.
Avoidance of Penalties
As of 2023, companies falling short of Emiratization targets face monthly fines of AED 6,000 per missing Emirati employee (WAM official statement). By meeting targets, businesses avoid these recurring and escalating penalties.
Freedom from Operational Restrictions
Companies failing to comply may face suspension of new work permits or restrictions on renewing existing visas, limiting their ability to grow. Compliant businesses remain in good standing and avoid these disruptions.
Priority for Government Contracts
Government entities may give preference in procurement and tenders to companies with strong Emiratization records, improving competitive positioning.
Enhanced Reputation & Employer Brand
Achieving Emiratization targets signals a company’s commitment to national priorities, improving relationships with regulators and enhancing its appeal to Emirati jobseekers.
Access to Training & Subsidies
Companies proactively hiring and developing UAE Nationals can benefit from government-supported upskilling programs — reducing training costs and ensuring Emiratis are equipped for key roles. Programs like the Nafis initiative support private-sector employers in recruiting and retaining Emirati talent (Nafis official site).
Consequences of Non-Compliance
Companies that fail to meet Emiratization targets face serious consequences, including:
Heavy Fines — AED 6,000 per month for each unfilled Emirati position.
Downgrading to Category 3, resulting in higher MoHRE fees.
Suspension of work permits for new hires or renewals.
Negative reputation, making it harder to attract Emirati talent or secure government partnerships.
Calculating Your Emiratization Targets in UAE Companies
Companies with 50 or more employees must increase their Emirati workforce by 1% every six months until the overall target of 2% of skilled roles filled by Emiratis is reached, as mandated by Cabinet Resolution No. 279/2022.
MoHRE calculates each company’s targets based on the number of skilled workers it employs.
Key Official Resources
Ministry of Human Resources and Emiratisation (MoHRE)
Emirates News Agency (WAM) — for official press releases on Emiratization updates.
Ministry of Economy (MOE) — for national economic strategies linked to Emiratization.
Nafis Program — UAE’s federal initiative to empower Emirati talent.
Final Thoughts
Achieving Emiratization targets isn’t just about avoiding fines; it’s a strategic investment in the UAE’s future — and in your company’s long-term success. By hiring and developing Emirati talent, businesses can secure a sustainable competitive advantage while supporting the nation’s economic vision.
Benoy Jacob is a journalist-turned-business consultant, currently serving as the Director of Client Relations at ATB Corporate in Abu Dhabi. With a keen eye for market trends and business strategy, he helps companies expand, build strategic partnerships, and optimize their operations in the UAE. Benoy brings a unique perspective on economic policies, trade ecosystems, and investment opportunities in Abu Dhabi and the wider MENA region.