The UAE Ministry of Human Resources and Emiratisation (MOHRE) has officially updated the regulatory guidelines for the Nafis Emiratisation program. The new rules expand the scope of mandatory national employment quotas to include private sector companies with 20 to 49 employees operating in designated economic sectors, while introducing a streamlined process for expat work permit issuance.
Expanding the Emiratisation Framework
The Nafis program is a federal initiative designed to increase the representation of UAE nationals in the private sector workforce. Previously, mandatory quotas (requiring a 2% annual increase in Emirati employees) applied only to companies with 50 or more workers. Under the updated directive, smaller enterprises operating in 14 key economic activities must hire at least one UAE national.
While this introduces new compliance requirements for SMEs, MOHRE has simultaneously introduced administrative relaxations, including reduced work permit fees for compliant companies and faster digital processing for expatriate visas.
SME Compliance Notice
Companies failing to meet their designated Nafis quota will face a standard financial contribution of AED 96,000 per missing national. Compliance is verified directly via the MOHRE portal and Wage Protection System (WPS) records.
Designated Sectors for SME Quotas
The expanded quota rule applies to small and medium enterprises operating in several key sectors, including:
- • Information & Communication: Software development, technology consulting, and telecom services.
- • Financial & Insurance: Brokerages, financial advisory firms, and asset managers operating onshore.
- • Professional & Technical Services: Engineering firms, legal consultancies, and corporate management advisors.
Strategy for Recruiting Emirati Talent
To satisfy Nafis quotas without disrupting operations, companies should utilize the official Nafis recruitment portal to connect with qualified national candidates. Additionally, the government provides salary subsidies and pension support for hired Emiratis, making recruitment financially viable for small businesses.
Our HR advisory and PRO services teams support companies with Nafis portal registration, candidate sourcing, employment contract drafting, and Wage Protection System (WPS) setup.