The UAE has stepped up enforcement of its Emiratisation policy, introducing financial penalties for private-sector companies that failed to meet mandatory national employment targets by the end of 2025. The move reinforces the government’s long-term commitment to integrating Emirati talent into the private sector and strengthening workforce sustainability.
The Ministry of Human Resources and Emiratisation (MoHRE) has confirmed that companies which did not fulfil their required Emiratisation quotas by December 31, 2025, are now subject to financial contributions, marking a shift from advisory guidance to strict enforcement.
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Dh108,000 Penalty Per Unfilled Emirati Position
Under the enforcement framework, companies will be required to pay Dh108,000 for each Emirati national not hired in accordance with their annual Emiratisation target. The penalty applies on a per-position basis, meaning liabilities can quickly add up for organisations with multiple shortfalls.
The financial contribution is intended to encourage compliance while supporting national employment initiatives aligned with the UAE’s broader economic and social development goals.
Companies with 50 or More Employees in Focus
The policy primarily targets private-sector companies employing 50 workers or more, which are required to increase the proportion of Emiratis in skilled roles by at least 2 per cent annually. This incremental approach is designed to allow businesses to plan hiring strategically while steadily increasing national participation.
Importantly, enforcement is not limited to large organisations. Selected companies with 20 to 49 employees are also covered, particularly those operating in targeted economic sectors identified as capable of offering suitable and sustainable employment opportunities for Emirati nationals.
From Guidance to Enforcement
MoHRE had previously urged all eligible companies to meet their Emiratisation obligations ahead of the year-end deadline, providing ample notice and clarity on compliance requirements. With the deadline now passed, the introduction of penalties signals a clear transition from voluntary compliance to regulatory enforcement.
The measure underscores the UAE’s intent to ensure that Emiratisation is embedded as a core workforce strategy rather than treated as a procedural formality.
Business and Compliance Implications
For businesses operating in the UAE, the latest development highlights the growing importance of workforce planning and regulatory alignment. Non-compliance may not only result in financial penalties but could also lead to increased scrutiny and operational challenges.
Companies are advised to:
- Review current Emiratisation ratios
- Assess workforce structures and skilled-role classifications
- Align recruitment strategies with annual Emiratisation targets
- Seek professional advisory support to ensure ongoing compliance
A Strategic Priority for UAE Businesses
Emiratisation remains a central pillar of the UAE’s economic vision, aimed at developing national talent, enhancing private-sector competitiveness, and ensuring long-term labour market resilience. With enforcement now in effect, businesses that adopt a proactive and structured approach to Emirati hiring will be better positioned to manage costs, mitigate risk, and support sustainable growth.
