Emiratization 2026: Compliance Guide for UAE Employers

Emiratization 2026: What Employers Must Know

Quick Summary: Companies with 50+ employees must achieve 10% Emiratization by end of 2026. Non-compliance results in penalties of AED 108,000 per missing Emirati position (payable annually in January). Over 12,000 private sector companies are affected.

Emiratization is the UAE government's initiative to increase Emirati participation in the private sector. This guide covers compliance requirements for 2026.

Emiratization Quotas

Companies with 50+ Employees

| Year | Required Quota | | ---- | -------------- | | 2024 | 6% | | 2025 | 8% | | 2026 | 10% |

Quotas increase by 2% annually. The percentage is calculated based on skilled employees only.

Companies with 20-49 Employees

Companies in designated sectors must hire:

• By end of 2024: 1 Emirati employee
• By end of 2025: 2 Emirati employees

Who Must Comply?

Mandatory Compliance

• All mainland private companies with 50+ skilled employees
• Companies with 20-49 employees in 14 designated sectors
• Establishments registered under MoHRE

The 14 Designated Sectors (20-49 Employees)

1. Information and Communications
2. Financial and Insurance Activities
3. Real Estate
4. Professional, Scientific, and Technical Activities
5. Administrative and Support Services
6. Education
7. Healthcare and Social Work
8. Arts, Entertainment, and Recreation
9. Mining and Quarrying
10. Manufacturing
11. Construction
12. Wholesale and Retail Trade
13. Transportation and Storage
14. Accommodation and Food Services

Free Zone Companies

Most free zones (including DIFC and ADGM) are currently exempt from Emiratization requirements.

What Counts as a Skilled Employee?

For Emiratization calculations, skilled employees must meet one of these criteria:

• Post-secondary degree or certificate
• Salary of minimum AED 4,000 per month
• Position in skilled occupation category (legislators, managers, professionals, technicians, etc.)

Minimum Salary for Emiratis (2026)

Effective January 1, 2026: Emirati employees must earn minimum AED 6,000 per month to count toward Emiratization quotas.

Enforcement date: July 1, 2026 — After this date, Emiratis earning below AED 6,000 will be excluded from quota calculations, and work permit transactions may be blocked.

Penalties for Non-Compliance

Annual Financial Penalties

Companies that miss their Emiratization quota pay an annual fine in January:

| Year | Penalty Per Missing Emirati | | ---- | --------------------------- | | 2024 | AED 96,000 | | 2025 | AED 108,000 | | 2026 | AED 108,000+ |

Example: A company with 100 employees needs 10 Emiratis by 2026. If they have only 7:

• 3 missing positions × AED 108,000 = AED 324,000 annual penalty

Fake Emiratization Penalties

MoHRE actively investigates fake Emiratization practices:

• First offense: AED 20,000 per fake position
• Severe violations: Up to AED 100,000 per position
• Criminal prosecution possible

What is fake Emiratization:

• Registering Emiratis who don't actually work
• Creating fictitious job positions
• Emiratis registered but working elsewhere

Other Consequences

• Work permit restrictions
• Company classification downgrade
• Exclusion from government contracts

Nafis Program Benefits

Nafis is the government program supporting Emirati employment in the private sector. The UAE allocated AED 24 billion to employ 75,000 Emiratis through this program.

Salary Support

Government tops up monthly wages based on education level:

For Emiratis earning less than AED 20,000/month:

| Education Level | Monthly Support | | ----------------- | --------------- | | Bachelor's Degree | Up to AED 7,000 | | Diploma | Up to AED 6,000 | | High School | Up to AED 5,000 |

For Emiratis earning AED 20,000-30,000/month:

| Education Level | Monthly Support | | ----------------- | --------------- | | Bachelor's Degree | Up to AED 3,500 | | Diploma | Up to AED 3,000 | | High School | Up to AED 2,500 |

Merit Programme

Emiratis in specialized fields receive additional AED 5,000/month:

• Nurses
• Accountants
• Financial auditors
• Lawyers
• Financial analysts
• Coders

Training Support

• During training: Up to AED 8,000/month for 1 year
• University graduates: Up to AED 5,000/month for 5 years

Pension Support

For Emiratis earning less than AED 20,000/month:

• Government contributes to pension (GPSSA/ADRPBF) for 5 years
• 100% coverage in first year, decreasing gradually

Child Allowance

• Up to AED 800 per child
• Maximum AED 3,200 per month
• For children until age 21
• Applies to Emiratis earning less than AED 50,000/month

The 2-Month Replacement Rule

If an Emirati employee resigns, companies have 2 months to find a replacement before penalties apply.

Compliance Benefits

Companies exceeding Emiratization targets may qualify for the Emiratisation Partners Club:

• Up to 80% discount on MoHRE service fees
• Priority in government procurement

How to Register for Nafis

1. Visit nafis.gov.ae
2. Register your company
3. Post job opportunities
4. Access candidate database
5. Claim subsidies after hiring

Compliance Checklist

Immediate Actions:

• Calculate current Emiratization percentage
• Identify gap to reach 10% target
• Register on Nafis portal

Documentation Required:

• Employment contracts for all Emiratis
• Salary records (WPS)
• Social security registration (GPSSA)
• Job descriptions

Stay Compliant with RadixHR

RadixHR helps UAE companies manage Emiratization compliance:

• Track real-time Emiratization percentages
• Manage Emirati employee documentation
• Generate compliance reports
• WPS integration for accurate reporting

Book a demo →

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Based on MoHRE regulations and Ministerial Decisions No. 279 of 2022 and No. 455 of 2023. For specific situations, consult MoHRE or a UAE employment lawyer.