UAE Emiratisation: Quotas, NAFIS, and Staying Compliant in 2025
May 9, 2025
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The UAE is making a significant strategic push to integrate its national talent into the heart of the private sector, a move that's reshaping the employment landscape 
[1]
[17]. This initiative, known locally as Tawteen or Emiratisation, is more than just a policy; it's a national vision [1][17]
[24]. For decades, the nation's incredible growth relied heavily on skilled expatriate workers, creating a vibrant, diverse economy 
[15][24]. Now, the focus is shifting towards ensuring Emirati citizens are key players in the next phase of development, particularly within private companies [1][17][24]. This guide will walk businesses through the essential Emiratisation quotas, the supportive NAFIS program, and what you need to know about compliance for 2025 and beyond.
The "Why": Objectives of the Emiratisation Policy
At its core, Emiratisation aims to significantly increase the number of UAE nationals working in the private sector, addressing a historical imbalance compared to public sector employment [1]
[5][17]. Think of it as building a more sustainable economic future, powered by local talent [15][24]. The policy isn't just about numbers; it's driven by several key objectives designed to strengthen the nation from within [15]
[16][24]. It seeks to create meaningful, skilled jobs for Emiratis, reducing the long-term reliance on expatriate labor for greater economic resilience [1]
[8][15][17][24].
A major focus is developing national human capital – upskilling and preparing Emiratis through dedicated programs like NAFIS, ensuring they have the competitive edge needed in today's market [1][5]
[13][17]
[20][24]. This enhances the economic participation of citizens, ensuring they directly contribute to and benefit from the UAE's prosperity [24]. Furthermore, Emiratisation works to bridge the gap between public and private sector opportunities, making corporate roles more attractive and accessible to nationals [5]
[14]. Ultimately, these efforts support broader national goals, like economic diversification and building a knowledge-based economy, aligning with visions for the UAE's future 
[3][24]. Key players like the Ministry of Human Resources and Emiratisation (MoHRE) and the Emirati Talent Competitiveness Council (Nafis) oversee this vital national project [1][17].
Mandatory Emiratisation Quotas: What Businesses Need to Know
For Companies with 50+ Employees
If your company employs 50 or more people, the requirement is clear: you need to increase the number of Emiratis in skilled jobs by 2% each year [1][3][8][15][17]. This progressive increase started back in January 2023 [1][17]. The ultimate target is to reach a 10% overall Emiratisation rate in these skilled positions by the end of 2026 [1][8][15][17]
[22]. It’s a steady climb towards greater national participation in skilled roles.
For Companies with 20-49 Employees (Specific Sectors)
The scope of Emiratisation expanded significantly from January 2024, bringing smaller enterprises into the fold [1]
[6][8][15][22]. If your company has between 20 and 49 employees and operates within certain key sectors, you now have specific targets. The requirement was to hire at least one Emirati citizen during 2024 [1][6][8][15][22]. Looking ahead, the target increases: you must employ at least two Emirati citizens by the end of 2025 [1][6][8][15][22]. This move affected a large number of businesses, with MoHRE notifying over 12,000 companies in early 2024 [6].
The NAFIS Program: Empowering Talent and Supporting Businesses
Launched in September 2021 under the UAE's "Projects of the 50" initiative, the NAFIS program (its name meaning 'compete') is a cornerstone of the Emiratisation strategy [1]
[7]
[18]
[21]. Managed by the Emirati Talent Competitiveness Council, NAFIS is designed to make Emiratis more competitive in the job market and actively support their integration into the private sector [1][18][21]. Its ambitious goals include placing 75,000 Emiratis in private companies over five years (starting from 2021) and empowering them through various support mechanisms [1][7][18][21]. It also provides crucial incentives for companies to hire and train national talent [1][13][20][22].
•
Pension Program Support: Helps cover aspects of pension contributions for Emiratis working in private companies [18].
•
Unemployment Benefit: Provides temporary financial aid for Emiratis who face job loss in the private sector [18].
•
Career Counselling and Job Matching: The central Nafis platform (nafis.gov.ae) is a vital resource, connecting Emirati talent with job opportunities and offering career guidance [1][8][18][21]. Employers are strongly encouraged to use this platform to find qualified candidates and meet their quotas [3][8].
Ensuring Compliance and Understanding Penalties
The Ministry of Human Resources and Emiratisation (MoHRE) actively monitors whether companies are meeting their Emiratisation targets [1][7]
[9]. They use several tools to ensure compliance, including sophisticated digital systems that track employment data [1][6]. The mandatory Wage Protection System (WPS) helps verify salary payments and employment status, while registration in pension and social security systems provides further checks [3][16]. Companies might also face reporting requirements or audits [3]. For those excelling in Emiratisation, the Tawteen Partners Club offers benefits like reduced service fees [3][7][16].
Penalties for Non-Compliance
•
Companies with 50+ Employees: These firms face a monthly fine for each Emirati they fail to hire to meet the 2% annual growth target [1]. This fine started at AED 6,000 per month in 2023 and increases by AED 1,000 each year [1]
[12]. For failures in meeting the 2024 targets, the fine is AED 8,000 per month per missing Emirati, translating to a hefty AED 96,000 annually per shortfall [3][12]. This will rise to AED 9,000 per month (AED 108,000 annually) for 2025 failures [1][12].
•
Companies with 20-49 Employees (Targeted Sectors): If these companies didn't hire their first required Emirati in 2024, they face a fine of AED 96,000, payable in 2025 [1][5][6]. If they fail to employ the required two Emiratis by the end of 2025, the penalty increases to AED 108,000, payable in 2026 [1][5][6]. MoHRE may allow payment in installments under specific agreements [6].
•
Fake Emiratisation: The government takes a very strong stance against "fake Emiratisation" – hiring nationals for show without real jobs or submitting false data for NAFIS benefits [1][3]. Penalties are severe, ranging from AED 20,000 to AED 100,000 per case [1][12]. MoHRE encourages reporting of suspicious job offers [3].
•
Other Consequences: Beyond fines, non-compliance can lead to the suspension of new work permits, a downgrade in the company's MoHRE classification (affecting fees and processing), and even referral to the courts [3][9][12]. These penalties highlight the government's firm commitment to the policy's success [1][12].
Practical Steps for Businesses
Navigating Emiratisation requires a proactive approach. First, clearly identify your company's size and sector to confirm which specific quotas apply to you [1][3][6][8][15]. Make active use of the NAFIS platform (nafis.gov.ae) – it's your primary resource for finding qualified Emirati candidates and exploring available support programs like salary top-ups or training grants [1][3][6][8][22]. If you're a larger company (50+ employees), ensure your recruitment efforts target the required skilled roles [1][3][8].
Maintaining accurate employment records and ensuring timely salary payments through the Wage Protection System (WPS) are crucial for demonstrating compliance [3][16]. It's wise to budget proactively – either plan your hiring strategy to meet targets or account for potential NAFIS contributions (fines) if meeting quotas presents challenges [1][3][5][6][12][15]. Finally, foster a culture of integrity; report any suspected fraudulent job offers or attempts at "fake Emiratisation" immediately to MoHRE [1][3][12].
Key Resources and Contacts
Staying informed and connected is key. Here are the essential contacts:
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