On 11 July 2023, the United Arab Emirates’ (UAE) Ministry of Human Resources and Emiratisation (MoHRE) announced an expansion of the Emiratisation initiative to certain companies and individual establishments in specific sectors that employ 20 to 49 employees. The MoHRE will shortlist companies that must meet these Emiratisation targets based on different criteria (e.g., types of jobs, work environment, geographical location). Shortlisted companies will be required to hire at least one UAE national in 2024 and another in 2025. In addition, if one of their employed UAE nationals leaves the company, they will be required to hire a UAE national as a replacement within two months of the former employee’s departure or pay the financial contribution for the targeted year if they reduce the number of their UAE national staff after the targeted year.
A Tax Alert prepared by EY's People Advisory Services group, and attached below, provides additional details.
