Understanding UAE’s Cultural And Demographic Diversity Requirements For Private Sector Hiring

The UAE continues to promote a balanced, inclusive labor market through its Workforce Planning Policy, emphasizing cultural and demographic diversity. This aligns with Cabinet Resolution No. (18) of 2022, which classifies private sector establishments into categories based on compliance with labor laws, Emiratisation targets, and diversity commitments. Promoting diversity helps establishments achieve higher classifications (e.g., Category 1 or 2), which can offer benefits like reduced fees for work permits.

Key Aspects Of The Diversity Requirement

There are no restrictions based on specific nationalities. Instead, establishments must diversify their workforce to reflect the UAE’s multicultural society and avoid over-reliance on any single nationality.

When applying for a new work permit, the MOHRE system may display this message: “Please achieve demographic diversity while employees hiring.”

What this means in practice (effective from updates around February 1, 2024):

• Establishments must ensure that at least 20% of hires (using their available quota) come from different/underrepresented nationalities.
• This translates to roughly one out of every five new hires being from a nationality not dominant in the current workforce.
• The quota is considered used only after receiving pre-approval for the work permit.
• If the establishment has only one quota slot left and fewer than 50 workers, the system may block using it for a non-diverse nationality until diversity is addressed.

Who must comply?

The requirement applies to:

• All establishments opened after June 1, 2022, regardless of size.
• Existing establishments with fewer than 50 employees.

Exemptions:

• Establishments with 50 or more employees (if established before June 1, 2022).
• Fishing boats.
• Transfer work permits (internal job changes within the UAE).

Why this policy matters

By encouraging diversity, the UAE aims to:

• Foster innovation and equal opportunities.
• Strengthen the labor market’s competitiveness.
• Support broader goals like Emiratisation and worker rights protection.

For full details, refer to Cabinet Resolution No. (18) of 2022 and related circulars on the official MOHRE website.

If you’re an employer facing this system message, review your current workforce composition and prioritize diverse hires where possible. Compliance not only avoids delays in permit approvals but also contributes to a more vibrant, inclusive UAE workplace.

Disclaimer: This summary is based on official MOHRE communications and related resolutions. Always verify the latest updates directly via the MOHRE portal or helpline for your specific establishment.