The Ministry of Human Resources and Emiratization announced yesterday that the Government’s Emiratization drive now includes private companies with 20 to 49 employees. This expansion applies to companies across 14 economic sectors, including, inter alia, real estate, education, construction, and healthcare. Previously, only companies with 50 or more employees were required to meet Emiratization targets.
The targeted companies will need to hire at least one UAE citizen in 2024 and another in 2025, as informed through the Ministry’s digital channels.
Private companies with 20 to 49 employees that fail to employ at least one Emirati in 2024 will face a fine of Dh96,000 ($26,000). The fine will increase to Dh108,000 ($30,000) for businesses that have not employed two Emiratis in 2025. Previously, only companies with 50 or more employees were subject to these hiring requirements, with businesses in free zones exempted. There has been no confirmation yet if the same exemption will apply to companies with 20 to 49 employees in free zones.
The deadline for private sector companies with 50 or more employees to ensure that 3 percent of their workforce consists of Emiratis was 7 July 2023.
These measures have been introduced to encourage Emiratis to pursue skilled positions in the private sector. It was previously announced in February that firms would need to increase the proportion of Emirati employees by 1 percent every six months. The target is to reach 4 percent by the end of this year, 6 percent by the close of 2024, 8 percent the following year, and 10 percent by the end of 2026.
On August 6, 2024, the Saudi Arabian government introduced amendments to the Labor Law issued by Royal Decree No. (M/51) dated 23/8/1426 AH, as amended. These changes aim to improve working conditions, clarify employer obligations, and enhance worker rights. The revisions include amendments to thirty-eight articles, deletion of seven articles,… Read more
The prevalence of restrictive clauses in contracts with a Kuwaiti nexus, introduced by both service providers and product suppliers, has become a notable feature in the business landscape. These clauses often seek to limit client autonomy by restricting the resale of purchased goods or engagement with competing service providers. However,… Read more
After much anticipation, Egypt’s Prime Minister issued Decree No. 1120 of 2024 (Decree) revealing the long-awaited amendments to the Competition Act’ executive regulations (Regulations). By way of background, in December 2022, the Egyptian Competition Act underwent a major overhaul with the introduction of a pre-merger control regime that grants the… Read more
The business and economic landscape of Kuwait just changed. With the ratification of the first law of 2024: Law Regarding the Amendment of Article 24 of the Commercial Law and Article 31 of the Public Tenders Law (1/2024) (the “Foreign Company Amendments Law”) on 21 January 2024, foreign companies now… Read more
The Kingdom of Saudi Arabia has introduced a series of groundbreaking premium residency options. Dr. Majid bin Abdullah Alkassabi, Chairman of the Premium Residency Center announced five distinctive categories—special talent, gifted, investor, entrepreneur, and real estate owner residencies. This strategic move, harmonizing with Vision 2030's objectives, positions Saudi Arabia as… Read more
The Egyptian Competition Authority (the “ECA”) has traditionally been known for its aggressive stance towards historically tolerated anti- competitive acts. To live up to its slogan, “a stronger economy…for a better life”, it recently began shifting its focus to awareness-raising (in parallel with enforcement), a much-needed step in a market… Read more