Anyone who sets up a company in the UAE or whose staff grows will sooner or later meet "Emiratisation": a policy that requires private companies to have a set share of UAE citizens among their staff. The rule has a real cost, and ignoring it is penalised. This article is based on the "Employing Emiratis in the private sector" page of the official UAE Government portal (`u.ae`), checked on 25 October 2026.
Companies with 50 or more employees
| Subject | Official rule |
|---|---|
| Annual target | Raise the share of UAE citizens by 2% a year in skilled jobs |
| Overall target | A 10 per cent increase by 2026 |
| Contribution | From 2023, AED 6,000 a month for each UAE citizen not hired; this rises by AED 1,000 a year until 2026 |
| Incentive | Establishments that perform well in training and employing citizens receive incentives |
The page does not give the year-by-year amount; ask the ministry for the current year's figure.
Companies with 20 to 49 employees in 14 sectors
This rule applies only to companies with 20 to 49 employees in these 14 sectors:
| Group | Sectors |
|---|---|
| Professional and financial services | Information and communications; finance and insurance; real estate; professional, scientific and technical activities; administrative and support services |
| Social services | Education; health and social work; arts and entertainment |
| Industry and building | Mining and quarrying; manufacturing; construction |
| Trade and services | Wholesale and retail trade; transport and storage; hospitality |
| Subject | Official rule |
|---|---|
| Required hiring | At least one UAE citizen by the end of 2024 and one more by the end of 2025 |
| Not hiring in 2024 | AED 96,000 in January 2025 |
| Not hiring two in 2025 | AED 108,000 in January 2026 |
Fake Emiratisation and circumvention
The UAE Government portal page names these regulations:
| Regulation | Subject |
|---|---|
| Cabinet Resolution No. 95 of 2022 | Violations and administrative penalties, including fake Emiratisation and fraud to obtain Nafis benefits |
| Cabinet Resolution No. 44 of 2023 | Penalties for cutting staff, reclassifying employees or other deceptive means |
| Ministerial Resolution No. 296 of 2023 | Criteria for administrative fines |
| Ministerial Resolution No. 455 of 2023 | Targets for companies with 20 to 49 employees |
| Ministerial Resolution No. 663 of 2022 | Compliance rules |
| Ministerial Resolution No. 279 of 2022 | Monitoring and contributions |
The same page says companies must not advertise unskilled jobs or misleading vacancies and must cancel work permits immediately when employment ends. The penalty amounts are not on this page.
The Nafis programme
| Subject | What the page says |
|---|---|
| Goal | Employ 75,000 UAE citizens in the private sector over five years |
| Nafis award | Recognises establishments that hire citizens well and outstanding Emirati employees |
| Teaching specialists programme | Hire 1,000 citizens a year in private education from 2024, reaching 4,000 by 2027 |
| Industrialists programme | Build local capacity and speed up Emiratisation in industry |
| Employer obligation | Report any contract change that affects an Emirati employee's Nafis eligibility |
Pension and minimum salary
| Subject | Official rule |
|---|---|
| Pension registration | Register the Emirati employee and start contributions within one month of the work permit being issued |
| Contributions, 20% in total | Employee 5%, employer 12.5%, government 2.5% |
| Minimum monthly salary for Emiratis in the private sector | AED 6,000 from 1 January 2026 |
| Legal basis for pensions | Law No. 7 of 1999 on pensions and social security |
Two examples
These examples are hypothetical and only apply the official rules above. Headcount and "skilled job" are defined by the ministry.
Example 1: a real estate company with 30 employees. Real estate is one of the 14 sectors and the company has 20 to 49 employees, so the rule for this group applies.
| Year | Required | If not done |
|---|---|---|
| 2024 | One UAE citizen | AED 96,000 in January 2025 |
| 2025 | One more, two in total | AED 108,000 in January 2026 |
If this company hires a citizen, it must register them in the pension scheme within one month of the work permit being issued and pay a monthly salary of at least AED 6,000.
Example 2: a company with 100 employees in skilled jobs. The 2 per cent annual target for 100 skilled jobs means 2 more UAE citizens a year. If the company hires only one, it pays a monthly contribution for the other unfilled place; this amount started at AED 6,000 in 2023 and has risen by AED 1,000 a year.
| Item | Calculation | Result |
|---|---|---|
| Annual target | 100 × 2% | 2 people |
| Hired | — | 1 person |
| Unfilled | 2 − 1 | 1 person, with the current year's contribution |
Practical points
- Check your company's headcount and sector against the ministry's definitions to know which rule applies to you.
- If your company has 20 to 49 employees, match the list of 14 sectors against the activity on your trade licence.
- Misleading job advertisements or unskilled jobs to reach the target are prohibited.
- When hiring citizens, be aware of the Nafis programme and its incentives.
- See company setup and licence types in the article "Setting up a company in the UAE"; whether free zone companies are also covered is not stated on this page and should be asked of the ministry.
Royal Golden does not give legal or human resources advice. This article is general information, and the decision on any company rests with the Ministry of Human Resources and Emiratisation.
Sources
- UAE Government portal, Employing Emiratis in the private sector — https://u.ae/en/information-and-services/jobs/Sector-of-employment/employment-in-the-private-sector/emiratis-employment-in-private-sector (checked on 25 October 2026)