This article, written and produced by Auxilium, one of the GCC’s leading Employer of Record and outsource staffing solutions providers, looks more closely at what this means for companies.
The Emirati Talent Competitiveness Council Program (Nafis) was launched in 2021 and was aimed at supporting Emirati nationals who want to pursue professional careers in the private sector. Alongside Nafis, the UAE government also introduced measures to increase the Emiratization rate for private sector employers by 2% annually, with the aim to meet an overall target of a 10% increase by 2026.
Under the mandate, private companies in the UAE with 50 or more skilled employees, now need to confirm by January 1st 2023 that they have raised their Emiratization rate in line with this target, or face potential fines.
In a recent advisory statement, the Ministry of Human Resources and Emiratization (MOHRE) reiterated that companies who fail to comply will have to pay a fine of Dh72,000 for each Emirati that they are short of their quota.
The statement stressed that the ministry is ready to help companies to achieve the target, saying: “We reaffirm our belief in developing the UAE labor market in partnership with the private sector to help achieve an improved business environment and investment climate that encourages companies, investors, entrepreneurs, and talented people from all over the world to work in the UAE, especially in strategic sectors.”
The statement added that: “Adhering to the legislation regulating the labor market is ultimately in the interest of private sector companies and their employees.”
If you are a growth-driven business looking to launch or expand operations in the GCC, then you should talk to Auxilium.
We are one of the leading Employer of Record (EOR) and outsource staffing solutions providers in the GCC Region.
We help organisations to establish and grow their businesses in Saudi Arabia, the UAE, Kuwait, Qatar, Bahrain, and Oman. To find out how we can help you, feel free to reach out to our team.
Matthew is a business growth leader, previously Head of Key Accounts at Transguard. He’s instrumental in driving sales growth and building strong relationships with clients. Committed to delivering exceptional results and a focus on customer service has earned him a reputation as a trusted partner
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