UAE issues final warning to private sector: AED 108,000 fine per missing Emirati by Dec 31

With the clock ticking toward December 31, private companies across the UAE are reevaluating recruitment plans, training pipelines, and job structures to align with Emiratisation requirements designed to increase the participation of UAE nationals in the private economy. The Ministry of Human Resources & Emiratisation (MoHRE) has set December 31, 2025 as the firm deadline for private-sector companies to meet their Emirati sation targets. Companies with 50 or more employees are required to increase the number of Emirati nationals in skilled roles by at least 2 percent before the deadline.

UAE Emiratisation deadline 2025
The Ministry of Human Resources and Emiratisation (MoHRE) has issued a strict reminder to private sector companies across the UAE: the deadline to comply with the latest Emiratisation targets is December 31, 2025. This initiative is a core component of the UAE's Vision 2030, aimed at boosting the employment of citizens in skilled private sector roles. The requirement involves a 2% annual growth in Emirati staff for skilled positions, broken down into a 1% increase every six months.

The primary target structure for large companies is:

• Companies with 50 or more employees must ensure that 8% of their skilled workforce are Emirati nationals by the end of 2025.
• This requirement is part of a national strategy aiming to reach a 10% Emiratisation rate by the end of 2026.

The mandate has also been expanded to include smaller businesses. Companies employing 20 to 49 workers, particularly those in 14 key economic sectors like Finance, Real Estate , and IT, must hire at least two Emirati citizens by the end of 2025.
What is Emiratisation?
Emiratisation is a national policy in the UAE aimed at increasing meaningful employment of Emirati citizens across public and private sectors. Its key objectives include boosting the number of UAE nationals in private-sector jobs, reducing reliance on expatriate labour while enhancing workforce diversity, and raising Emiratis’ skills, competitiveness and participation through training, incentives and workplace programmes. The policy is enforced through quotas, monitoring mechanisms and sanctions for non-compliance by employers.

Emiratisation fines and MoHRE monitoring
Companies that fail to meet these specific quotas by the December 31 deadline will face severe financial penalties starting January 1, 2026.

Key Penalties for Non-Compliance:

• Companies with 50+ staff: Will be required to pay a monthly financial contribution of AED 9,000 for every Emirati not hired to meet the 8% target. This accumulates to AED 108,000 annually per missing employee.
• Companies with 20–49 staff: Those failing to hire the required two Emiratis by the end of 2025 will face a fine of AED 108,000. (This follows a fine of AED 96,000 for missing the 2024 target of hiring one Emirati).

MoHRE has stated its commitment to deal "firmly with any company proven to have committed fraud." The ministry has enhanced its surveillance mechanisms, including the use of advanced Artificial Intelligence (AI) tools, to detect avoidance strategies such as "Fake Emiratisation." This fraudulent practice, where companies hire Emiratis in non-existent or misleading roles solely to hit quotas, can result in fines ranging from AED 20,000 to AED 100,000 per case, as well as legal action and a downgrade of the company's classification within the ministry's system.

How does Nafis give companies huge financial perks?
The Emiratisation initiative is driven by more than just penalties; it is strongly supported by the Nafis program, which provides crucial financial and logistical incentives. For Emirati citizens, Nafis offers direct support, including salary top-ups of up to AED 7,000 monthly and various training programs designed to encourage their entry into the private sector.

The program also rewards compliant companies that exceed the mandated targets, allowing them to join schemes like the Emiratisation Partners Club. These incentives offer significant advantages, such as up to an 80% reduction on ministry service fees and priority in securing government procurement contracts.

This dual approach has fueled compliance, resulting in a remarkable milestone: as of mid-2025, the number of Emiratis working in the private sector has surpassed 152,000 across 29,000 companies, showcasing unprecedented national engagement. The Ministry of Human Resources and Emiratisation urges all firms to actively utilize the Nafis platform to connect with qualified Emiratis and fulfill their national responsibilities before the year-end deadline.

Bottom line
The year-end December 31 deadline marks a pivotal moment in the UAE’s drive to integrate more Emiratis into the private workforce. Companies that align with the targets will find opportunity in incentives; those that delay risk fines, downgraded status and the growing risk of legal enforcement.