What Is Emiratisation?
Emiratisation (also known by its Arabic name Tawteen) is the UAE government's policy requiring private sector companies to hire a certain proportion of UAE nationals (Emiratis). The policy is designed to increase Emirati participation in the private sector workforce, which has historically been dominated by expatriate labour.
Emiratisation obligations are enforced by the Ministry of Human Resources and Emiratisation (MOHRE) and have become progressively stricter since 2022.
Who Is Subject to Emiratisation Targets?
Emiratisation obligations currently apply to private sector companies with 20 or more employees in certain sectors. The key sectors covered include:
- Financial services and banking
- Insurance
- Information and communications technology
- Healthcare
- Real estate
- Retail (medium and large)
- Hospitality
- Construction (management roles)
- Manufacturing
- Education
Companies with fewer than 20 employees are not subject to the mandatory Emiratisation quota but are still encouraged to participate and can access Nafis benefits.
The Emiratisation Target Rate
For covered companies, the current target is a 2% annual increase in Emirati employees in skilled roles (Skill Level 1–4 under the UAE's occupational classification).
The target is cumulative: companies are expected to grow their Emirati headcount year-on-year until they reach the applicable sector target rate.
Nafis — The Federal Competitiveness and Statistics Centre Programme
Nafis (Arabic for "compete") is the UAE federal programme that supports Emiratisation by providing wage support subsidies to private sector employers who hire and retain UAE nationals.
What Nafis Provides
| Nafis Benefit | Amount |
|---|---|
| Monthly salary support for new Emirati hires | AED 5,000 – 8,000/month (varies by Emirati employee's salary band) |
| Child allowance | AED 800/month per child (up to 3 children) |
| Pension contribution support | Up to AED 3,000/month |
Benefits are paid directly to the Emirati employee's bank account by the Nafis programme, effectively reducing the employer's net payroll cost for that hire.
Nafis Eligibility
- The employee must be a UAE national
- The role must be a skilled position (Skill Levels 1–4)
- The employer must be registered on the Nafis platform (nafis.gov.ae)
- The employment contract must be attested with MOHRE
Penalties for Non-Compliance
Companies subject to the Emiratisation quota that fail to meet their targets face a quarterly contribution to the UAE government — effectively a fine for each shortfall in Emirati headcount.
The quarterly contribution rate is AED 6,000 per month for each Emirati employee the company is short of its target. For a company with a target of 5 Emirati employees that has hired 2, the quarterly contribution would be AED 6,000 × 3 shortfall × 3 months = AED 54,000 per quarter.
Non-compliant companies can also have their MOHRE services suspended — which means they cannot process new employment visas or labour contract amendments until the shortfall is addressed.
What SMEs Should Do
- Assess whether you are subject — check your headcount and sector against the MOHRE classification
- Register on Nafis — even if you are not yet at the mandatory threshold, Nafis registration positions you to access subsidies when you are ready to hire
- Plan your hiring calendar — Emiratisation targets are assessed periodically; planning ahead avoids last-minute compliance pressure
- Track Emirati headcount — ensure MOHRE records accurately reflect your Emirati employees to avoid penalties based on system discrepancies
Amara advises on Emiratisation obligations as part of the Compliance+ and Amara360 retainer tiers.