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Find out moreThe first Law Update of 2024 is here, and our first focus of the year spotlights Healthcare and Lifesciences, a sector that is undergoing significant growth and development across the MENA region.
Our focus provides an insight into some of the most important regulatory updates across the region, such as the UAE’s groundbreaking law on the use of human genome, Kuwait’s resolution on nuclear and radioactive materials, the new regulations for healthcare services in Qatar, Egypt’s healthcare regulatory framework, and the impact of the Saudi Civil Transactions Law on the healthcare and life sciences sector … and there is so much more!
Beyond the healthcare pages our lawyers share with you multi-sector insights where you will discover articles on Dubai’s DIFC regulatory framework for startups, Bahrain’s commercial agencies law, and we also shed light on Kuwaiti civil code and the advantages of setting up a joint stock company in Saudi Arabia.
Read the full editionThe UAE government recently announced a change to its Emiratisation programme whereby incentives will be provided to employers who reach the Emiratisation quota whilst fines will be imposed on those that do not comply. The country has set a minimum Emiratisation rate of 2 percent annually for the private sector. The aim is that by 2026 the private sector workforce will be at least 10% UAE national.
This applies to employers registered with Ministry of Human Resources and Emiratisation (“MOHRE”) so it does not apply to free zone companies and MOHRE exempt companies (who are free to join NAFIS on a voluntary basis).
Emiratisation is an initiative by the UAE government which promotes the employment of UAE nationals in the private sector. The current Emiratisation quotas are:
These are cumulative figures so in year 1 of operation a commercial entity with more than 50 employees should have 2% Emiratisation, in year 2 it should be 4% and so on. Up until now the quotas were not enforced for the commercial sector but are substantially enforced for banks and insurance companies.
From January 2023, private sector companies with more than 50 employees that do not reach the Emiratisation quota will be subject to fines. These new guidelines were authorized as part of the NAFIS programme, which is a federal government programme aimed at increasing UAE national participation in the private sector.
The percentage applies to skilled jobs so for every 50 skilled employees the employer needs to hire one UAE national in a skilled job.
MOHRE will categorise employers as follows:
It was originally understood that NAFIS enrolment and subsequent compliance was elective. This is not the case and NAFIS enrolment and compliance is mandatory for MOHRE registered companies.
The NAFIS programme will help companies to source UAE nationals by means of a portal that they maintain.
The Emiratisation percentage is calculated based on the total number of skilled UAE nationals working in the establishment in relation to the total number of skilled workers.
An employee is classified as a skilled worker if the below conditions are fulfilled:
Private sector companies will now need to ensure that they are:
Registration with NAFIS can be done through this link here.
If you have any queries on this topic please do not hesitate to reach out to us.
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