UAE To Strengthen Indigenization; Big Fines For Not Hiring UAE Nationals

Dubai: A decision has been taken to impose heavy blame on private companies that do not comply with the requirement that two per cent of employees be UAE nationals. Human Resources Emirates Minister Dr. This was announced by Abdul Rahman Al Awar. He said the new decision would take effect from next year.

A fine of 6,000 dirhams must be paid each month

Institutions that do not comply with the law on repatriation will have to pay a fine of AED 6,000 per person per month. He said he would have to pay an additional fine of 1,000 dirhams each year for failing to recruit a certain percentage of nationals. The minister said the fines would be levied from January 2023. It has also decided to increase the monthly fine for non-compliant companies to Dh10,000 by 2026.

Hiring more natives brings more benefits

At the same time, the minister said that companies that achieve a certain percentage of repatriation will be given a number of benefits. These companies will receive benefits including a 80 per cent reduction in the fee for obtaining and renewing work permits and visas. Al-Awar said there are currently 31,000 UAE nationals working in the private sector.

A fine of 6,000 dirhams must be paid each month

Indigenization will increase to 10 percent by 2026

The UAE now aims to implement two per cent repatriation in the private sector this year. The government plans to increase the rate by two per cent every year to 10 per cent by 2026. This provision is applicable to private companies with more than 50 employees. The announcement was made by Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.