UAE to Enforce Emiratization in Private Sector

From July 1, the UAE authorities will start monitoring companies in the private sector to ensure they are meeting Emiratization targets. This step is part of a national strategy aimed at ensuring that by the end of 2026, at least 10% of skilled workers in the private sector are Emirati citizens.

What does Emiratization mean in practice?

Emiratization is the process by which the private sector is encouraged to increase the proportion of Emirati citizens among their employees – particularly in skilled positions. The core of this policy is to create a sustainable labor market for citizens living in the Emirates and to promote the country's economic independence.

Mandatory targets for companies

According to the regulation, every private company with at least 50 employees is required to increase the number of skilled Emirati workers by 2% annually: 1% in the first half of the year and another 1% in the second half. This means that by June 30, 2025, companies must reach at least a 7% ratio, and by December 31, an 8% ratio among skilled workers. The ultimate goal: 10% by the end of 2026.

Inspections and fines

The inspections starting in July will not only check the ratios achieved by companies but also whether Emirati employees are registered with the social security system and whether the appropriate contributions are paid regularly. Companies failing to meet the mandatory targets will face monthly fines that could reach thousands of dirhams for each missing Emirati employee.

The ministry uses a digital monitoring system to detect abuses, including sham hiring where companies comply with regulations on paper but do not actually employ real workers. Between mid-2022 and April 2025, the system caught about 2,200 businesses committing such violations.

Results so far and incentives

By the end of April 2025, more than 136,000 Emirati citizens were working in the private sector at over 28,000 different companies – a historic record for the country. Authorities attribute this success in part to the rapid growth of the economy and the commitment of companies.

Companies that excel in meeting Emiratization requirements can expect various benefits, such as up to an 80% discount on service fees and priority access to government procurement.

What can be expected in the future?

In the coming months, the focus will be on the actual verification of data, ensuring compliance, and reducing abuses. Companies should already be preparing to meet obligations, especially if they wish to avoid fines and take advantage of the offered incentives.