Understanding the United Arab Emirates Emiratisation Workforce Policy

The government of the United Arab Emirates (UAE) established Emiratisation as a national workforce policy to increase the participation of UAE nationals in the private sector, reduce reliance on expatriate labor and advance the country’s transition to a sustainable, knowledge‑based economy.

Although Emiratisation has been in place for years, recent updates and stricter enforcement measures have elevated it into a critical compliance obligation for employers. Corporations operating in the UAE must now integrate Emiratisation into global mobility planning, talent acquisition strategies and long‑term workforce design. A clear understanding of the program’s requirements, benefits and penalties is essential to maintaining operational continuity and mitigating risk.

Florabel Bautista, Senior Immigration Manager at Envoy Global’s UAE Office, provides insight into how these requirements affect employers and outlines practical steps organizations can take to prepare for successful implementation.

What is Emiratisation?

First introduced in the 1990s, Emiratisation saw limited enforcement in its early years. Formal programs launched in the 2000s encouraged the employment of UAE nationals across both public and private sectors. Over time, the policy has evolved significantly, with recent years marking a shift toward mandatory quotas and heightened compliance monitoring.

Emiratisation seeks to integrate Emirati citizens into the workforce and bridge the gap between foreign and local workers. To support this effort, the UAE government has developed programs to enhance Emiratis’ skills, including:

• Customized training programs
• On-the-job training
• Apprenticeship opportunities
• Talent development initiatives

Additionally, Emiratis are encouraged to launch their own businesses, promoting diversity, inclusion and entrepreneurship in the workplace.

UAE Workforce Composition and Emiratization Compliance

As of 2025, the UAE’s population is estimated to be 11.4 million, with foreign nationals accounting for approximately 88%. The workforce reflects a similar composition, with 85% expatriates and 15% Emiratis. Most Emiratis remain concentrated in the public sector, while private‑sector participation is being driven by intensified Emiratisation policies.

Emiratisation Goals and Targets

In May 2022, the UAE government announced a more rigorous implementation of Emiratisation under the NAFIS program, introducing mandatory hiring quotas for Emirati nationals in the private sector: a historic development since the initiative’s inception.

Key milestones:

• January 2023: Mainland private companies with 50 or more skilled employees under the jurisdiction of the Ministry of Human Resources and Emiratisation (MOHRE) were required to increase their Emirati workforce by 2% annually.
• Later in 2023: Targets were expanded to include companies with 20 to 49 skilled employees across 14 key sectors, mandating:
  • One Emirati employee by the end of 2024
  • A second Emirati employee by the end of 2025

As of 2025:

• Large firms (50+ skilled employees): 8% Emiratisation rate
• Smaller firms (20–49 skilled employees): Must have hired their second Emirati by December 2025

Looking ahead to 2026:

• Large firms must reach a 10% Emiratisation target by December 2026

Emiratisation Penalties and Business Impact

The UAE government closely monitors Emiratisation compliance among mainland companies. While free zone companies remain exempt.

• Companies with 50+ skilled employees:
  • AED 9,000 per month for each unfilled Emirati position in 2025
  • Totals AED 108,000 annually per missing Emirati
  • Penalty increases to AED 10,000 per month in 2026
• Companies with 20–49 skilled employees:
  • AED 108,000 if the target of two Emiratis is not met by the end of 2025
• Fraudulent practices (e.g., fake Emiratization paperwork):
  • Fines ranging from AED 20,000 to AED 100,000
  • Up to AED 500,000 for repeated offenses

MOHRE may also suspend work permit issuance and renewals for companies that fail to pay fines, reopening labor files only once penalties are fully settled.

Benefits and Challenges of Emiratisation

The UAE government is scaling up regulatory efforts while offering incentives to companies that support the initiative.

Incentives for compliant companies include:

• Upgraded MOHRE tier classification, lowering labor fees
• Uninterrupted access to MOHRE services
• Reduced hiring costs for Emiratis through government‑subsidized pension contributions

Challenges for employers include:

• Higher salary expectations and benefit requirements
• Skill mismatches between job roles and candidate qualifications
• Emiratis’ preference for public‑sector employment
• Cultural differences affecting workplace integration

How Envoy Global Can Help

Navigating Emiratization in the UAE can be complex, especially with evolving quotas and stricter enforcement. Employers need more than policy updates; they need trusted guidance to stay compliant and competitive.

At Envoy Global, we combine smart, friendly legal teams with smart, friendly technology to facilitate immigration for companies and the global talent they depend on. Our holistic, proactive immigration services are built for accuracy and efficiency, always putting people first.   

Reach out today to learn how we can support your company’s immigration needs and help you stay ahead in a rapidly evolving environment.