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Practical guide

Emiratisation and Nafis

Private-sector companies above a headcount threshold must meet Emiratisation targets for skilled roles, with financial contributions payable for shortfalls. The targets increase on a published schedule, so a company that complies this year may not next year.

In practice

Emiratisation requirements for UAE companies

What the obligation is

Companies on the mainland above the applicable headcount threshold must employ UAE nationals in a proportion of their skilled positions, rising on a set schedule. Nafis is the federal programme supporting it, offering salary support and training subsidies to make hiring nationals commercially viable.

Why it is enforced seriously

MOHRE monitors compliance and applies monthly contributions for each unmet position. It has also pursued artificial compliance — nominal employment of nationals who do not actually work — which carries considerably heavier consequences than simply missing the target.

Applies to
Target
Shortfall
Nafis
The obligations, in the order they bite.
Applies to
Mainland companies above the applicable skilled-worker headcount threshold
Target
A percentage of skilled roles, increasing on a published schedule
Shortfall
Monthly financial contribution per unfilled position
Nafis
Federal programme providing salary support and training subsidies
Free zones
Generally outside the mainland Emiratisation regime — confirm with your zone
False compliance
Treated far more seriously than non-compliance
What to watch. Growing past the threshold is easy to miss. Companies that hire steadily through a year can find themselves in scope without having noticed, and the contribution is backdated to when the obligation arose rather than to when you realised.

The sequence

How it runs.

  1. Establish whether you are in scope

    It turns on skilled headcount, not total headcount, and on being mainland.

  2. Calculate the target

    Against the current schedule, not last year's.

  3. Register with Nafis

    The programme's support materially changes the economics of hiring.

  4. Recruit genuinely

    Into real roles with real responsibilities.

  5. Monitor as you grow

    Crossing a threshold mid-year brings you into scope mid-year.

Questions

Generally the mainland Emiratisation targets do not apply to free zone companies, but confirm with your specific zone. The position has been evolving and should not be assumed.

The federal Emiratisation programme, which provides salary support, training and pension contributions to make employing UAE nationals in the private sector commercially viable.

A monthly financial contribution for each unfilled position, escalating over time. Artificial or nominal compliance is treated far more seriously than a genuine shortfall.

One question

Where are you in this?