Definition
Emiratisation is the UAE federal government’s strategic workforce nationalization policy that requires private-sector companies to employ a minimum percentage of Emirati citizens. The program aims to integrate UAE nationals into industries historically dominated by expatriate workers, building a knowledge-based economy driven by local talent.
UAE Context
The UAE’s labor market is unique globally, with expatriates comprising roughly 90 percent of the total workforce. Emiratisation addresses this imbalance by setting mandatory hiring quotas for companies with 50 or more employees. The policy has been progressively tightened since its introduction, with the most significant reforms arriving in 2022 when the Ministry of Human Resources mandated a 2 percent annual increase in Emirati private-sector representation.
Key Data
- Current quota: Companies with 50+ employees must increase Emirati headcount by 2 percent annually
- Penalty for non-compliance: AED 72,000 per unfilled position per year
- Target sectors: Banking, insurance, telecommunications, retail, real estate, and technology
- Nafis program: Launched in 2021 to complement Emiratisation with salary top-ups and training subsidies for Emirati private-sector employees
Significance for Vision 2031
Emiratisation is a foundational pillar of the We the UAE 2031 vision. The policy directly supports the national objective of building a competitive Emirati workforce capable of leading private-sector innovation. By 2031, the government aims to substantially raise private-sector Emirati participation rates, reducing structural reliance on government employment and fostering entrepreneurship among nationals.
Related Terms
- Nafis - The federal program supporting Emiratisation through financial incentives
- Non-Oil GDP - Economic diversification that Emiratisation supports
- Vision 2031 - The national framework guiding Emiratisation targets