- Localisation rules differ between the UAE and Saudi Arabia in how they are calculated, when they are checked and what happens if you miss them, so a plan starts from your own country's official rule, not a generic percentage.
- A national only counts if specific conditions are met, such as social security registration and the minimum wage, and ignoring them undermines the plan however many people you hire.
- Replacement that does not hurt performance runs in clear stages: early hiring, a period of working side by side, and a handover gated by readiness criteria, with the experienced employee staying on as a reference for a set period.
Localisation rules, rates and contribution amounts change through successive official decisions, so check with your country's human resources ministry before any hiring or compliance decision.
What do localisation rules actually require of you?
There is no single GCC-wide localisation rate. Each country has its own programmes and its own authority, and this guide focuses on the UAE and Saudi Arabia because their published rules are the most detailed. If you operate in Oman, Qatar, Kuwait or Bahrain, the method below still applies, but to the rules of your own labour ministry.
In the UAE, private-sector establishments with 50 or more employees must increase the number of Emiratis in skilled roles by 2% a year, as part of a government goal of a 10% overall increase by 2026. [2] The target is split into 1% for each half of the year, and the Ministry starts verifying the first-half target on 1 July. [1] Establishments with 20 to 49 employees in 14 designated sectors had to hire at least one Emirati during 2024 and one more by the end of 2025. [2]
In Saudi Arabia, the Nitaqat Mutawar programme places each entity in one of five bands: Red, Low Green, Medium Green, High Green and Platinum. [4] The required rate is not a fixed number; it is calculated with a formula that varies by economic activity and by the entity’s headcount. [4] In 2026 the Ministry announced a new three-year phase of the programme, aimed at localising more than 340,000 additional jobs, so you need to work from the rates approved for the current phase, not those of earlier years. [5]
| Item | UAE | Saudi Arabia |
|---|---|---|
| Authority | Ministry of Human Resources and Emiratisation | Ministry of Human Resources and Social Development |
| Core rule | 2% annual increase in skilled roles | Band set by activity and entity size |
| Timing | 1% target each half-year | Rates announced for each phase |
| Calculation unit | Skilled roles in the establishment | Entity: branches of one activity |
| Counting condition | Social security and AED 6,000 minimum wage | Each decision's conditions, e.g. minimum wage |
| Consequence | Financial contributions and legal action | Service restrictions and profession penalties |
Why do replacement plans fail?
Most plans fail for one of three reasons. The first is treating localisation as a number to fill before the verification date: a batch of nationals is hired at once into roles that are not ready for them, turnover rises and the number falls again.
The second is ignoring the counting conditions. In the UAE, an Emirati must be registered with a social security fund and contributions must continue to be paid. [1] The minimum wage for Emiratis has been AED 6,000 a month since 1 January 2026; from 1 July 2026, Emiratis whose salaries have not been raised no longer count towards targets, and new work permits are suspended for non-compliant establishments. [3]
The third is overlooking profession-specific Saudisation decisions. The decision on technical engineering professions, for example, covers establishments with five or more workers in those professions and raises the rate progressively to 30% over five years from 27 July 2025. A Saudi technician counts only if their GOSI-registered wage is at least SAR 5,000 and they are accredited by the Saudi Council of Engineers, and the penalties apply regardless of the establishment’s Nitaqat band. [6]

Step one: size the gap with the right numbers
Start by listing the roles that count, not your total headcount. In the UAE the target is based on skilled roles; in Saudi Arabia the band is calculated at entity level, meaning all branches of the same economic activity owned by the firm. [2, 4]
Hypothetical example: a Dubai company has 300 skilled roles, 9 of them held by Emiratis. The first-half target means an increase equal to 1% of skilled roles, roughly 3 more Emiratis, and the same again in the second half. But if expected turnover is one Emirati every six months, the real requirement is 4 hires, not 3. And if one current Emirati earns less than AED 6,000, raising that salary belongs in the plan too, because they may otherwise stop counting. [3]
Confirm the exact calculation through the Ministry’s systems, but this rough figure is enough to build the budget and the timeline.
When you build the budget, do not stop at salaries. Add the cost of the side-by-side period, when two people are paid for one role, and the cost of training, then compare the total with the cost of non-compliance. On the other side of the ledger, members of the UAE’s Emiratisation Partners Club receive discounts of up to 80% on Ministry service fees and priority in the government procurement system. [1]
Step two: choose the roles to localise
Do not start with the most critical roles or with the least valuable ones. The first puts performance at risk; the second drives turnover because it offers no career path, and may not fall within what counts in the first place. Assess skilled roles against these criteria:
| Criterion | Questions to ask |
|---|---|
| Impact of errors | Would a mistake stop a service or create a financial or legal liability? |
| Transferability of knowledge | Are procedures documented? How long does a newcomer need to work independently? |
| Candidate availability | Are qualified nationals available in the market for this specialism? |
| Career path | Does the role lead to a more senior one within two or three years? |
Begin with roles of moderate impact, transferable knowledge and a clear path, and defer critical roles to a later stage, once you have built a second line of nationals within the department. In the UAE, the Nafis platform gives access to Emirati job seekers. [1]
Step three: transfer knowledge before the employee moves on
- 1Choose the roleModerate impact, high transferability
- 2Hire earlyWell before the target date
- 3Work side by sideOn-the-job training with the incumbent
- 4Gated handoverPerformance indicators confirm readiness
- 5Follow up and retainExpert reference and career path
The most expensive mistake is letting the experienced employee leave before their successor has worked alongside them. So hire well ahead of the target date and set aside a period of working side by side, in which the newcomer gradually takes over tasks under the incumbent’s supervision.
To make that period productive, ask the incumbent for three outputs: a list of recurring tasks and their deadlines, the steps of any undocumented procedures, and a list of the people and bodies they deal with. Link their appraisal for that period to a successful handover, so that knowledge transfer becomes part of their job rather than an extra burden.

How do you protect performance during the transition?
Set two or three indicators for each role that measure readiness before full handover, such as the share of transactions completed on time, the error rate or internal customer satisfaction. A role moves to full handover only once the indicators have been met for a continuous period.
Keep the experienced employee available as a reference for a set period after handover, whether by moving them into a supervisory or training role or through a short consultancy contract. Review progress monthly with the line manager, because a struggling replacement shows up in performance before it shows up in HR reports.
What can make the plan non-compliant?
- Fake Emiratisation: hiring nationals without real work. The UAE’s digital field inspection system flagged around 2,200 establishments for breaching Emiratisation policies and decisions, fake Emiratisation among them, between mid-2022 and April 2025, and legal action was taken against them. [1]
- Circumventing the target: Cabinet Resolution No. 44 of 2023 penalises establishments that avoid targets by cutting their workforce, reclassifying employees or other deceptive means. [2]
- Assigning duties under other titles: in Saudi Arabia, assigning the tasks of targeted professions to non-Saudis under different job titles breaches the Saudisation decision. [6]
- Ignoring how your band affects services: an establishment in the Red band cannot apply for new visas or renew work permits, and Low Green does not allow new visas or occupation changes. [4]
A half-yearly review checklist
- Have we listed the roles that count and sized the gap after allowing for expected turnover?
- Is every national registered for social security and paid at least the applicable minimum wage?
- Does each role chosen for localisation have an owner, a side-by-side schedule and readiness indicators?
- Have we checked the profession-specific decisions for our activity, not just the general rate?
- Do job titles match employees’ actual duties?
- Does every national we hire have a development plan that makes them less likely to leave?
Conclusion
A realistic localisation plan starts from your country’s official rule and its counting conditions, then chooses roles carefully, hires early and gates the handover on readiness indicators. That is how you meet the target on time without paying for it in performance.
Frequently asked questions
What Emiratisation rate do UAE private-sector companies have to meet?
Private-sector establishments with 50 or more employees must increase the number of Emiratis in skilled roles by 2% a year, 1% in each half of the year. Establishments with 20 to 49 employees in the designated sectors had to hire at least one Emirati during 2024 and one more by the end of 2025.
Does an Emirati count towards the target whatever their salary?
No. The minimum wage for Emiratis in the private sector has been AED 6,000 a month since 1 January 2026, and from 1 July 2026 Emiratis whose salaries have not been raised no longer count towards targets. They must also be registered with a social security fund, with contributions paid.
How is an establishment's Nitaqat band calculated in Saudi Arabia?
The average number of Saudi employees is divided by the combined averages of Saudi and expatriate employees in the entity (GCC nationals are not counted as expatriates), and the result is compared with the minimum for each band, which varies by economic activity and entity size.
If we are in a green Nitaqat band, are we compliant with profession-specific Saudisation decisions?
Not necessarily. Penalties under profession-specific decisions, such as the one for technical engineering professions, apply regardless of the establishment's Nitaqat band, so you need to plan for both.
Can we give nationals job titles without real duties to reach the rate?
No. This is known as fake Emiratisation; the authorities detect it and take legal action, and UAE rules also penalise circumvention by cutting headcount or reclassifying employees.
References
- Ministry of Human Resources and Emiratisation (UAE). MoHRE urges private sector companies to meet Emiratisation targets for the first half of 2025 before 30 June (2025)
- UAE Government official portal (u.ae). Emiratis' employment in the private sector
- Ministry of Human Resources and Emiratisation (UAE). MoHRE raises minimum wage for Emiratis in the private sector to AED 6,000 per month, effective 1 January 2026 (2025)
- Ministry of Human Resources and Social Development (Saudi Arabia). Nitaqat Mutawar Program (guideline) (2023)
- Ministry of Human Resources and Social Development (Saudi Arabia). Launch of a new phase of the Nitaqat Mutawar Program (2026)
- Ministry of Human Resources and Social Development (Saudi Arabia). Procedural Manual for the Saudization Resolution of Technical Engineering Professions (2025)
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