- Mandatory Emiratisation quotas apply to all mainland UAE private sector companies with 50 or more employees.
- The annual target rises by 2% per year: 2% Emirati workforce share required by end of 2024, cumulative 4% by end of 2025.
- Non-compliance levy: AED 8,000 per month per unfilled Emirati position, capped at AED 96,000 per position per year.
- Nafis salary subsidy: up to AED 8,000 per month per Emirati employee hired — exactly matching the non-compliance levy.
- UAE free zone companies are exempt from mandatory Emiratisation quotas as of August 2026.
- Banking sector faces stricter CBUAE rules: a mandatory 4% net annual increase in Emirati employees, enforced separately from MOHRE quotas.
Updated August 2026. Every private sector company operating on the UAE mainland with 50 or more staff must meet rising Emiratisation headcount targets or pay monthly levies through the government’s Nafis system. This guide covers who must comply, what the annual targets are, the exact penalty structure, the Nafis salary subsidies available, and how to register through the Nafis portal.
What Is Emiratisation and the Nafis Platform?
Emiratisation is a UAE federal government initiative requiring private sector employers to hire and retain UAE nationals (Emiratis) at defined minimum percentages of their total workforce. The programme is administered by the Ministry of Human Resources and Emiratisation (MOHRE) and monitored through the Nafis platform (nafis.gov.ae) — a federal digital system that tracks Emirati employment in the private sector, processes quarterly compliance reports, disburses incentive subsidies to employers, and bills non-compliant companies for monthly shortfall levies.
Nafis was launched in 2021 and has become the single source of truth for Emiratisation compliance. MOHRE cross-references Nafis data against GPSSA (General Pension and Social Security Authority) records to verify that registered Emirati employees are genuine hires drawing a real salary.
Which Companies Must Comply?
Compliance obligations vary by company size, licence type, and sector. The table below summarises the key categories:
| Company Category | Mandatory Quota? | Notes |
|---|---|---|
| Mainland UAE, 50+ employees | Yes — full quota applies | AED 8,000/month levy per unfilled Emirati position; quarterly reporting required |
| Mainland UAE, fewer than 50 employees | No mandatory quota | Eligible for Nafis incentive subsidies voluntarily; strongly encouraged to participate |
| UAE Free Zone companies | Exempt (August 2026) | Regulated by free zone authority, not MOHRE; may still voluntarily register on Nafis |
| Agriculture, domestic services, fishing | Partially exempt | Sector carve-outs apply; verify current scope with MOHRE |
| Licensed banks (CBUAE-regulated) | Yes — stricter sector rules | Central Bank mandates 4% net annual Emirati headcount increase; fines and business restrictions possible |
Annual Emiratisation Quota Targets
For mainland companies with 50 or more employees, the required percentage of Emirati staff rises by 2 percentage points each year. Targets are cumulative — each year’s obligation adds to the previous:
| Year | Emirati Workforce Target | Year-on-Year Increase |
|---|---|---|
| 2024 | 2% of total workforce | +2% (first quota year) |
| 2025 | 4% of total workforce | +2% (cumulative) |
| 2026 and beyond | 6%+ (projected at +2%/yr) | Confirm current-year target via the MOHRE/Nafis portal |
Sector-specific variation: The 2% annual increase applies across most private sector industries, but certain regulated sectors have additional targets. The banking sector is the clearest example: the Central Bank of UAE (CBUAE) independently mandates a 4% net annual increase in Emirati employees at licensed banks, separate from and in addition to the MOHRE Nafis quota framework. Some banking institutions also have absolute Emirati workforce percentage targets set by CBUAE that vary by institution size.
Nafis Levies: Non-Compliance Penalties
Companies that fall below their required Emirati headcount are billed automatically through the Nafis/MOHRE system on a monthly cycle. There is no grace period for shortfalls — levies accrue from the first month a quota is missed:
| Penalty Item | Amount |
|---|---|
| Monthly levy per unfilled Emirati position | AED 8,000 |
| Annual cap per unfilled position | AED 96,000 |
| Billing method | Via MOHRE / Nafis portal; monthly automated billing cycle |
Worked example: A mainland company with 100 employees must have 4 Emirati staff on payroll by end of 2025 (4% target). If it employs only 2 Emiratis, it has a shortfall of 2 positions. The monthly levy is AED 8,000 × 2 = AED 16,000 per month, or AED 192,000 per year. Sustained non-compliance can also affect a company’s MOHRE compliance rating, which may slow visa processing and restrict access to government services.
Nafis Incentives: Subsidies for Hiring Emiratis
To help private sector employers offset the cost of hiring UAE nationals, the Nafis programme offers a range of monthly financial subsidies. These are separate from the levy system and must be applied for independently through the Nafis portal after each eligible hire:
| Subsidy Type | Monthly Amount | Eligibility Condition |
|---|---|---|
| Salary support (employer contribution) | Up to AED 8,000/month | Per Emirati employee in private sector; verified salary and contract required |
| Maternity leave top-up | AED 5,000/month for 6 months | Emirati female employees on maternity leave |
| On-job training support | AED 1,000/month | Emirati trainees placed in SMEs under a formal training programme |
| Child allowance | AED 800–1,600/month | Emirati employees with eligible dependents |
The salary subsidy ceiling of AED 8,000/month is not a coincidence — it exactly matches the monthly non-compliance levy per unfilled position. Employers who successfully hire Emiratis and claim the Nafis salary subsidy can fully offset the levy cost of that position. Subsidies are not paid automatically: each hire requires a separate Nafis portal application, and MOHRE verifies the employment contract, payroll records, and GPSSA registration before approval.
Step-by-Step Nafis Registration and Compliance
Mainland companies subject to Emiratisation quotas should complete the following steps to register, report, and claim incentives:
- Register your company on the Nafis portal at nafis.gov.ae using your mainland trade licence and establishment details.
- Link your MOHRE establishment card to sync your total workforce headcount data with the ministry’s records.
- Report Emirati headcount quarterly — Nafis cross-references MOHRE data with GPSSA pension records to verify Emirati employees are genuine hires drawing a salary.
- Pay any shortfall levies monthly — MOHRE bills non-compliant companies automatically through Nafis; ensure sufficient balance in your linked account to avoid service disruptions.
- Apply separately for Nafis incentive subsidies each time you hire an eligible Emirati employee — salary support, maternity top-ups, training grants, and child allowances each require a separate application and MOHRE verification.
Frequently Asked Questions
Which companies must comply with Emiratisation quotas in the UAE?
Mandatory Emiratisation quotas apply to private sector companies with 50 or more employees that hold a mainland UAE trade licence. These companies must ensure a rising percentage of their total workforce consists of UAE nationals — 2% by end of 2024, 4% by end of 2025, with the target increasing by 2 percentage points each subsequent year. Companies with fewer than 50 employees on the mainland are not subject to the mandatory quota but may voluntarily register on the Nafis platform to access salary subsidy incentives. UAE free zone companies are currently exempt from mandatory quotas under the August 2026 framework.
What happens if a company does not meet its Emiratisation quota?
Non-compliant companies are charged a levy of AED 8,000 per month for each Emirati employee they fall short of the required number. This is billed automatically through the MOHRE/Nafis system on a monthly cycle, with no grace period, and is capped at AED 96,000 per unfilled position per year. Sustained non-compliance can also affect a company’s MOHRE compliance score, potentially slowing visa and permit processing and restricting access to certain government services. MOHRE retains authority to impose additional administrative sanctions on repeat non-compliant employers, and licensed banks face separate CBUAE penalties on top of any MOHRE levies.
Are UAE free zone companies exempt from Emiratisation?
Yes. As of August 2026, companies incorporated in UAE free zones are exempt from mandatory Emiratisation quotas. Free zone entities are regulated by their respective free zone authority rather than MOHRE, and the Nafis quota framework applies only to mainland-licensed businesses. However, a free zone company may voluntarily register on the Nafis portal and benefit from salary subsidy incentives if it chooses to hire Emirati nationals. If a business holds both a free zone licence and a mainland trade licence, the mainland-registered workforce headcount is subject to quota rules and must be reported separately.
How does the Nafis salary subsidy work, and how much is it?
The Nafis salary subsidy provides up to AED 8,000 per month per Emirati employee as a direct financial contribution from the government toward the employee’s salary cost. To claim it, the employer must register the Emirati hire on the Nafis portal, submit a valid employment contract and proof of salary payments, and pass MOHRE verification against GPSSA records. The subsidy is paid monthly and reviewed periodically. Additional Nafis support includes: AED 5,000/month for six months when an Emirati female employee takes maternity leave; AED 1,000/month for on-job training placements in SMEs; and AED 800–1,600/month child allowance for Emirati employees with dependents. None of these subsidies are automatic — each requires a separate portal application.
Do UAE banks face different Emiratisation rules?
Yes. Licensed banks regulated by the Central Bank of UAE (CBUAE) face a separate and more stringent requirement: a mandatory 4% net annual increase in Emirati employees. This is enforced by CBUAE directly, in addition to any MOHRE Nafis quota obligations, and is tracked independently of the Nafis system. Banks that fail to meet the CBUAE target risk regulatory fines and restrictions on their banking operations. Individual institution-level targets for overall Emirati workforce percentage also apply and vary by bank size. Banking sector HR and compliance teams must monitor both their MOHRE Nafis obligations and their CBUAE commitments as separate reporting tracks.