Increasing the number of UAE nationals in the private sector has long been a key objective for the government. In the past, the UAE government has launched a significant number of laws and initiatives to support the localisation of the workforce. The government has recently increased its efforts in this regard and introduced a suite of new laws, including an obligation to recruit Emirati employees at the rate of 2% per year, to drive forward its Emiratisation policy.
This client alert answers frequently asked questions on the key aspects of the new laws.
It is important that employers in the private sector are fully aware of the implications of the new legislation. Marking a shift in approach, these laws (particularly Ministerial Decision No. 279 of 2022) are expected to significantly impact businesses’ recruitment and organisational policies.
What has changed?
The following key legislation have been introduced:
Which businesses do these new laws apply to?
The new Emiratisation laws are only applicable to those companies registered with the Ministry of Human Resources and Emiratisation (MOHRE).
These laws do not apply to businesses based in free zones.
What are the requirements of the 2% Emiratisation Law?
All employers with more than 50 employees must recruit UAE...
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