UAE Emiratisation Rules Reference 2026 — What UAE Free Zone Companies Must Know
UAE Emiratisation targets require private sector companies to hire UAE nationals. Here is the 2026 reference guide for UAE free zone companies on Emiratisation rules.
In this guide:
What Is Emiratisation?
- Policy: UAE government initiative requiring private sector companies to hire UAE nationals (Emiratis)
- NAFIS: The UAE national Emiratisation program; supports UAE nationals entering private sector
- Quota: Companies above threshold must meet annual Emirati hiring quotas
Who Is Subject to Emiratisation Quotas?
- Companies with 50+ employees: Subject to mandatory Emiratisation quota of 2% per year increase in Emirati employees
- Companies with fewer than 50 employees: Subject to lighter requirements; must register with NAFIS
- Free zone companies: Free zone companies ARE subject to Emiratisation requirements if they employ 50+ workers in UAE
2026 Emiratisation Targets
- Skilled roles: 2% annual increase in Emirati employees in skilled roles (skill levels 1-5 per ISCO classification)
- 2024 target: 2% of skilled workforce to be UAE nationals
- Target: 10% of skilled workforce by 2026 for companies with 50+ employees
Emiratisation Fines
- Non-compliance: AED 6,000 per month per unfilled Emirati quota position in 2024 (increases annually)
- NAFIS registration: Must be registered on NAFIS platform; penalties for non-registration
Free Zone Company Practical Implications
- Small companies (under 50): Limited Emiratisation burden; register on NAFIS; comply with reporting
- Large companies (50+): Must meet quotas; NAFIS subsidies available for Emirati hires (partial salary support)