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94.9% of companies comply with Emiratisation regulations: MoHRE data

94.9% of companies comply with Emiratisation regulations: MoHRE data
4 Jan 2024 08:43

In a significant step in fulfilling a strategic national priority for the UAE, data from the Ministry of Human Resources and Emiratisation (MoHRE) showed that 94.9% of companies are committed to localisation decisions and policies.

The figures confirm the private sector’s dedication to meeting the requirements and fulfilling responsibilities within its strategic partnership with the government in localisation efforts, under the guidance, direction and support of the wise leadership.

The data indicated that 95% or more of private companies are committed to providing real job opportunities for the UAE citizens, in compliance with Emiratisation policies and decisions.

The Emirati Talent Competitiveness programme, Nafis, is implementing national initiatives aimed at supporting citizens in the private sector, enhancing their global competitiveness, and supplying the sector with Emirati competencies in collaboration with all relevant entities in the local, federal, and private sectors, to achieve the desired goals of increasing localisation in the private sector.

The percentage of the private sector’s commitment to the announced localisation rates is based on the results of the implementation of a Cabinet decision aimed at increasing localisation rates in private sector establishments with 50 or more employees by 2% annually for skilled positions, starting from 2022. This aims to achieve a total increase of 10% by 2026, alongside providing incentives to outstanding establishments that achieve progress in training and employing citizens, contributing to the goals of the Nafis programme.

The next phase prioritises economic development and empowering human capital to achieve the goal of “building the best and most active economy in the world” that requires integrated solutions responding to the needs and aspirations of society and individuals, reinforcing Emirati talents, ensuring economic flexibility, and solidifying the country’s position as a hub for talent, companies, and investments.

In this context, the MoHRE began implementing localisation targets for more than 12,000 private companies in 14 specified economic sectors, employing 20-49 workers each, covering 71 sub-sectors. This involves appointing at least one citizen in 2024 and another in 2025. The Ministry recently notified the companies through its digital system of the need to comply with the decision and provide sufficient opportunity to achieve the required targets.

The mentioned companies operate in 14 key economic sectors that are experiencing rapid growth and have the ability to provide jobs and a suitable work environment. The sectors include information and communication, finance and insurance, real estate, tech, administrative and support services, education, health and social work, arts and entertainment, mining and quarrying, manufacturing, construction, wholesale and retail trade, transport and storage, and hospitality.

The MoHRE urged the companies covered by the decision to “quickly meet localisation targets and not delay until the end of the year to fulfil what is required of them”.

The Ministry emphasised the importance of targeted companies to register on the Nafis platform to benefit from the support provided by the programme for supplying the private sector with qualified and capable Emirati professionals in various targeted economic sectors.

The Ministry affirmed its commitment to continue holding training workshops to raise awareness of companies covered by the decision about the mechanisms for achieving the required targets and how to benefit from the support provided by Nafis.

Annual fines will be imposed on companies that do not comply with achieving the required targets, amounting to Dh96,000 for each citizen not appointed, starting from January 2025 for missing 2024 targets, with fines reaching Dh108,000 in January 2026 for missing 2025 targets. Fines can be paid in installments by agreement with the Ministry.

The localisation decision applies to companies with 20-49 employees, concurrent with the continued application of localisation targets for companies with 50 or more employees that are required to achieve an annual growth rate of 2% in localising their skilled positions.

Source: Aletihad - Abu Dhabi
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