UAE also with that decision taken by several Gulf countries; expatriates to be in crisis, companies that do not comply to be fined

DUBAI: Lakhs of expatriates, including Keralites, are working in the Gulf region. The UAE is also coming to a decision taken by several Gulf countries in the recent past. The UAE has decided to tighten its indigenisation rules further. The UAE's Ministry of Human Resources has released a strict directive on the number of nationals to be included when private companies hire employees in their offices from the beginning of next year.

The UAE has decided to further strengthen the existing indigenization laws. Medium-sized companies will be more affected by the law than large companies. The new order makes it mandatory for private companies with 20 to 49 employees to have two Emirati employees. At present, this rule is applicable only to companies with more than 50 employees.

With the new order, more companies will be forced to hire Emiratis. Companies that do not comply with the law will be fined up to Dh96,000. Companies that provide false information about indigenisation will be fined up to Dh 1 lakh. Apart from domestic companies, the new rule will also apply to companies from abroad. This becomes a financial liability for the companies when they have to pay more to the Emiratis in the form of salaries than what is paid to expatriates.

The UAE Ministry of Finance has framed a new law according to a new decision by the Ministry of Finance, that will give representation to women in the governance of private companies. It will come into effect from January 1, 2025. According to the new rules, a woman should also be involved in the appointment of members of the board of directors of private joint-equity companies.