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The UAE is intensifying efforts to increase the number of Emirati nationals employed in the private sector with higher hiring targets and a newly enforced salaryThe UAE is intensifying efforts to increase the number of Emirati nationals employed in the private sector with higher hiring targets and a newly enforced salary

UAE sets minimum wage for Emiratis as hiring targets rise

2026/01/21 15:56

New rules apply to private sector
UAE nationals to get minimum AED6,000/month
Share of Emirati employees to rise 2%

The UAE is intensifying efforts to increase the number of Emirati nationals employed in the private sector with higher hiring targets and a newly enforced salary floor reshaping how companies plan their workforces.

Emiratisation – the government policy under which these changes are being made – is now in its fifth year and the new policies require mainland businesses with 50 or more employees to lift the share of Emiratis in skilled roles by a further 2 percent, split evenly between June and December.

The aim is to raise the number of UAE nationals working in the private sector to 10 percent by the end of 2026.

The new rules come alongside a parallel change to remuneration. From the start of this year, UAE nationals working in the private sector must be paid a minimum of AED6,000 ($1,633) a month, converting what had previously been a guideline into a hard baseline.

Companies entering the market in 2026, or crossing the 50-employee threshold during the year, will also be required to meet a 2 percent Emiratisation target, calculated as one Emirati hire for every 50 skilled expatriates.

Those that fall short face a monthly penalty of AED10,000 for each unmet position.

The Ministry of Human Resources and Emiratisation (MoHRE) said more than 152,000 Emiratis were employed in the private sector as of the end of June 2025, spread across about 29,000 companies.

“I believe that the overall impact will be relatively limited on wage inflation in the near term, with the majority of nationals working in the private sector earning above this level,” said Monica Malik, chief economist at Abu Dhabi Commercial Bank.

“I do believe the main reason is to create a floor for new entrants into the labour market, though again their salaries will likely be higher than this.”

UAE employment

James Swanston, Middle East and North Africa economist with Capital Economics, told AGBI the AED6,000 rate would help to lift the wage floor, particularly in Dubai, where he said average wages for expats and Emiratis were around AED5,600. In Abu Dhabi he said that figure is slightly higher at AED7,500.

“It incentivises work for Emiratis in sectors such as hospitality or retail, where expat labour has tended to keep wages lower,” Swanston said.

He added that higher-skilled Emiratis are largely unaffected, especially as existing salary guidelines for graduates already range from AED5,000 to AED12,000 a month. “This is really about encouraging lower-skilled Emiratis into the workforce rather than reshaping pay at the top end,” he said.

The immediate pressure will fall on roles where nationals are clustered in entry to mid-level positions, according to Beth Qutob, a legal associate at Crimson Legal. “Administrative functions, customer-facing roles and retail operations are the most exposed,” she said.

While there is no published standalone fine for failing to meet the AED6,000 threshold, she said MoHRE could withhold or suspend work permits until salaries are corrected, creating operational disruption that may prove costlier than any formal penalty.

There is no minimum salary for non-Emiratis in the UAE.