Picture for illustrative purposes only. ARCHIVE

UAE authorities have warned private sector firms that failing to meet Emiratisation targets by the end of the year will result in financial penalties. Companies with more than 50 employees must ensure that 2% of their workforce are Emiratis by 2023, in line with the government's Nafis initiative. Any company that does not meet the target must pay Dh6,000 per month for each Emirati it does not hire. By 2026, the UAE wants citizens to make up 10% of the private sector workforce. Fines for noncompliance will be collected beginning in January, according to the Ministry of Human Resources and Emiratisation. The ministry urged businesses to support the country's push to invest in local talent and take advantage of available incentives. "We are keen to support and empower private sector companies to achieve the Emiratisation targets before the end of this year," said Saif Al Suwaidi, under-secretary for Emiratisation at the ministry. "We're co-operating closely with the private sector, stemming from our belief in its role as a key partner in developing and shaping the future," he added. The UAE announced in May that it would reduce some worker permit fees for private sector firms that voluntarily exceed Emiratisation targets. This means that companies that go above and beyond what is legally required will pay Dh250 rather than Dh3,750 for specific permits. The move was part of the Ministry of Human Resources and Emiratisation's new private sector company classification system. The ministry provides a package of incentives to private sector companies that meet the Emiratisation target, including first-category classification and membership in the Tawteen Partners Club within the establishments' classification system, which allows members to receive discounts of up to 80% on the ministry's service fees. BKM/ Expat Media
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