There are two and a half months left until the first deadline introduced by the Emiratization program for UAE SMEs.

Previously the Emiratisation rules applied only to private companies with 50 or more employees, but from July 2023 changes were announced for small companies in the Emirates, which will expand the number of enterprises falling under the country’s Emiratisation program.

Companies with 20 to 49 employees must now employ one UAE national in a qualified position by January 1, 2024, and another must be hired by January 1, 2025.
The requirement applies to private companies in 14 sectors. Businesses in free zones are exempt from this requirement. Industries affected by the law:
Information and communications
Financial and insurance activities
Real estate
Vocational activities
Administrative and support services
Arts and entertainment
Mining
Transforming industries
Education
Health and social work
Construction
Sales
Transport and warehousing
Hotel and catering services

Companies that fail to comply by January 1, 2024 face a fine of AED96,000.
This fine will increase to AED108,000 for small businesses that do not employ two UAE nationals by 1 January 2025.
Some companies try to circumvent the law – they hire UAE nationals without any real role or falsify labor cards by obtaining fake work permits in the name of UAE nationals.

Since June last year, a total of 565 companies have been fined for these actions.
The Ministry of Human Resources and Emiratisation said the companies were fined between AED20,000 and AED100,000 each.

Also, these companies no longer receive financial benefits from the UAE Talent Attraction and Retention Committee for employing UAE nationals.