The UAE Ministry of Human Resources and Emiratisation announced new enforcement steps on December 5 against private companies that fail to meet national hiring requirements. The update reinforces the UAE Emiratisation policy, which sets a 2% annual nationalisation target for skilled roles. The changes matter as higher penalties begin in 2026.
What changed in the UAE Emiratisation policy
Under current rules, companies with 50 or more employees must add 2% Emirati skilled workers each year. Smaller firms with 20 to 49 employees must hire one Emirati this year and two in total by year-end. The ministry linked these requirements to the broader Emiratisation policy, which mandates gradual localisation of private-sector roles.
Impact on companies and sectors
Firms that do not comply face an AED 96,000 fine per unmet hiring requirement. A monthly penalty of AED 8,000 also applies, with an option to pay AED 48,000 every six months. Next year, the monthly fine will rise to AED 9,000. These measures affect 14 sectors with 68 designated technical and professional roles and form part of the ongoing expansion of the UAE Emiratisation policy.
How the enforcement system works
Inspections will increase from January 1, 2026. Employers can be reported through a hotline or the MOHRE smart app. Offences such as manipulating workforce data or tampering with hiring disclosures can lead to fines of up to AED 500,000. First-time violations incur AED 100,000, while repeat violations reach AED 300,000 and AED 500,000. These measures underpin the accountability framework within the UAE Emiratisation policy.
Supporting data and official numbers
Government records show 154,000 Emiratis now work in the private sector, with 136,000 hired through the Nafis programme. More than 30,000 companies employ nationals. Current regulations permit firms to meet targets by hiring 1% of nationals every six months to ensure they remain aligned with the UAE Emiratisation policy timeline.
What comes next
Companies are required to complete an 8% cumulative nationalisation level by the end of this year. The goal will rise to 10% by December 2026. These deadlines mark the next phase of the UAE Emiratisation policy rollout.
