In recent days, the authorities have been putting pressure on private sector companies to meet the Emiratisation targets by the end of the year, under threat of financial penalties.
Explanation of the NAFIS program and the Emiratisation of the private sector
“NAFIS is the result of collaboration between multiple public and private sector stakeholders. Through tailored initiatives, NAFIS aims to integrate Emiratis into critical and emerging fields within the private sector.”The government launched NAFIS in 2021. The program, whose name means "competition" in Arabic, provides support to Emiratis who decide to pursue careers in one of the many private sector companies operating in the country.
This program is federal and is intended exclusively for private sector companies. Its purpose is to strengthen and increase the competitiveness of Emirati human resources by giving them the opportunity to take up jobs in private sector companies.
Note that the vast majority of public sector jobs are held by Emiratis.
NAFIS therefore offers a set of measures aimed at increasing the Emiratisation rate (the percentage of Emiratis) in private sector establishments.
The United Arab Emirates Minister of Human Resources and Emiratisation (MOHRE) reminded all private sector companies with more than 50 employees to reach an Emiratisation rate of 2 percent for skilled jobs by the end of 2022.
By 2026, the Emiratisation rate is expected to have reached 10% within private companies.
Saif Al Suwaidi, Undersecretary for Emiratisation at MOHRE, said: "We want to support private sector companies and provide them with the means to achieve the Emiratisation targets before the end of this year. We are working closely with the private sector because we are convinced of its role as a key partner in developing and building the future."
Further reading:
- NAFIS: The program for the Emiratisation of the private sector
- The Projects of the 50: Emiratisation at the heart of the program
Incentives and penalties that can reach thousands of AED
Penalties for companies that fail to comply with the NAFIS program could be very high. Fines of up to AED72,000 will apply from January 2023 to companies that do not comply with the new rules.
MOHRE specifies that these AED72,000 will be collected for each Emirati not employed, starting in January 2023.
In reality, these AED72,000 correspond to an annual penalty. In practice, a monthly financial penalty of AED6,000 will actually be imposed on companies that do not meet the required Emiratisation rate (2%).
Conversely, MOHRE also indicated that private sector companies that meet the established targets will be classified in the first category and become members of the Tawteen Partners Club. This opportunity will allow them to benefit from reductions of up to 80% on the ministry's service fees.
For example, for a service that cost AED3,750, these companies will pay only AED250.
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