Member News

United Arab Emirates

12 July 2023 – Emiratization Requirements Expanded to Smaller Employers

The Ministry of Human Resources and Emiratization has announced that effective January 1, 2024, companies with 20-49 employees operating in 14 key economic sectors will be subject to Emiratization requirements. Currently, only employers with 50 workers or more, regardless of the economic sector, are subject to specific Emiratization ratios. According to the announcement, the affected employers will have to hire at least one Emirati national in 2024 and another one in 2025. However, it is not clear if this requirement will apply automatically to all companies that meet the criteria of the headcount and sector, or if this will depend on the significance of the sector to the UAE economy at a given time, geographical location, and other economic indicators. The announcement is silent on whether employers in free zones will be affected by the new rule.

Employers who fail to comply with the new requirement will be subject to monthly fees for each vacancy that has not been filled with an Emirati worker, which will be up to AED 96,000 in 2025, and up to AED 108,000 in 2026.

12 July 2023 –Visa-Free Entry in Effect for Nationals of Azerbaijan

The governments of Azerbaijan and the United Arab Emirates have signed a bilateral agreement allowing visa-free entry for nationals of each other’s country. Under the waiver, nationals of the United Arab Emirates can now travel to Azerbaijan for tourism for up to 90 days without a visa. Similarly, nationals of Azerbaijan can travel to the United Arab Emirates for tourism for up to 90 days without a visa.

25 July 2023 – Employee Protection Insurance Program Forthcoming for Select Employers in Dubai South Free Zone.

Effective August 2023, employees of select companies registered in the Dubai South Free Zone will be subject to an Employee Protection Insurance Programme. The program will provide coverage for end of service benefits; repatriation costs; and reimbursement of unpaid expenses, among other benefits. Information on possible fees for employers for the program are not yet available, and it is unclear whether the program will be replacing a similar mechanism introduced for employers in the mainland in 2018.

27 July 2023 – Additional Details Released on Economic Sectors Impacted by New Emiratization Requirements

The Ministry of Human Resources and Emiratization (MOHRE) recently clarified the types of companies that will be affected by the recent expansion of Emiratization requirements to employers with headcounts of 20 to 49 employees, beginning in 2024. The MOHRE is now dividing activities that employers perform into primary and secondary activities, in accordance with the International Standard classification of Economic Activities, which the MOHRE updates regularly; this has the effect of reducing which employers are affected by the Emiratization requirements as the activities are more narrowly tailored. For example, under the construction primary activity, only those employers performing a secondary activity of electrical installations are affected; and for the manufacturing primary activity, only those employers performing secondary activities manufacturing generators, transformers and distribution and control devices for electricity and basic chemicals industry are affected. Employers should continue to monitor the developments of the Emiratization program and any actionable notifications or instructions from the MOHRE.

Saudi Arabia

17 July 2023 – Saudization Requirements for the Education Sector Announced

The Ministry of Human Resources and Social Development (MHRSD) issued a decision implementing Saudization requirements for primary, middle and secondary school teachers teaching Arabic, Islamic and social studies at private schools that adopt the national curriculum. By August 13, 2023, which is the start of the upcoming semester, these schools will be subject to a 50% Saudization requirement. However, a grace period of four months will be granted to the affected schools to adjust the required ratio of Saudi and foreign teachers before any penalties for non-compliance, such as suspension of immigration and employment services, go into effect. The new Saudization requirements do not apply to schools that teach an international curriculum or program.

25 July 2023 –Update on the Visit Visa for Investors

Foreign nationals from certain countries can now apply for the recently launched Business Visit Visa for investors. Effective immediately, foreign nationals from certain countries can now apply for the recently launched Business Visit Visa for investors in Saudi Arabia. This visa provides a specific entry route for visiting investors, where none was previously available in Saudi Arabia. Unlike the traditional Business Visit Visa, this visa does not require proof of a sponsor, opening the door to more entrants to Saudi Arabia

26 July 2023 - Electronic Visa Extended to Applicants in Pakistan

Effective immediately, the Saudi Arabian government expanded the e-visa program to individuals in Pakistan applying for business visas, short-term work authorization and work visas. These individuals will now receive an e-visa with a QR code instead of having a visa sticker endorsed in their passports. However, as authorities become accustomed to this change, affected individuals should carry a printed copy of their issued e-visa in paper form when boarding a plane to Saudi Arabia to facilitate entry. The Saudi Arabian government had already implemented this e-visa program on May 1, 2023, for nationals of eight countries, including India and the United Arab Emirates.

31 July 2023 - Issuance of Electronic Visa Expanded to More Countries

In the coming months, the Saudi Arabian government will expand the e-visa program to applicants in an additional 11 countries applying for business visas, short-term work authorization and work visas. These individuals will receive an e-visa with a QR code instead of having a visa sticker endorsed in their passports. Specifically, the e-visa program was already implemented in Yemen on July 26, and will be implemented in these select countries on the following dates: Sudan (August 2); Uganda (August 7); Lebanon (August 9); Nepal (August 14); Türkiye (August 16); Sri Lanka (August 21); Kenya (August 23); Morocco (August 28); Thailand (August 30); and Vietnam (September 4). However, as authorities become accustomed to this change, affected individuals should carry a printed copy of their issued e-visa on standard A4 sized-paper when boarding a plane to Saudi Arabia to facilitate entry. The Saudi Arabian government already implemented this e-visa program on May 1, 2023, for applicants in eight countries, including India and the United Arab Emirates and recently expanded the program to applicants in Pakistan.

Bahrain

07 July 2023 - Platinum Residency Announced

The Council of Ministers has approved a decision to create a Platinum Residency for certain foreign nationals who have lived in Bahrain for at least 15 years and who hold a Golden Residency. Details on the application process and implementation date are expected in the coming months.

18 July 2023 - Three-Year National Labor Market Plan Announced

18 July 2023 - Three-Year National Labor Market Plan Announced

The government of Bahrain announced the adoption of a new three-year National Labor Market Plan which will create employment opportunities for Bahraini citizens, increase the private sector’s contribution to the country’s economic growth, promote local and foreign investment, align educational outputs with the needs of the labor market and strengthen the existing regulatory framework. The Ministry of Labor is required to develop Labor Market Plans every four years and the previous labor plan successfully achieved 91% of its initiatives.

Oman

18 July 2023 - New Guidelines Issued for the Wages Protection System

The Ministry of Labor issued implementation deadlines for the Wages Protection System (WPS), which was originally announced in 2017, implemented in 2021, and not strictly enforced until now. Specifically, companies with over 51 employees (classified as medium or large) must implement the WPS for at least 50% of their workforce by November 9, 2023 and for 100% of their workforce by January 9, 2023. Companies with less than 50 employees (classified as small or micro) must implement the WPS for at least 50% of their workforce by January 9, 2024 and for 100% of their workforce by March 9, 2024. The WPS was implemented to ensure the payment of salaries to employees in a timely manner according to the terms and conditions agreed to by the parties in their employment contract. Once the WPS is implemented, salary payments must be disbursed no later than seven days from when they are due, with exceptions for certain cases such as when an employee is on unpaid leave. Employers that fail to comply with the new guidelines are expected to be subject to administrative penalties, including warnings, suspension of labor-related transactions and fines of OMR 50 per case. Affected employers should contact their banks for specific guidance on the salary disbursement process through WPS. Employers are also required to promptly inform the Ministry of Labor of any changes to salaries and ensure that the registered wages accurately reflect the amounts received by the employee.

Egypt

04 July 2023 - Minimum Salary Level Increased for Private Sector Employees

Effective immediately, the Ministry of Planning and Economic Development has increased the monthly minimum salary level by EGP 300 for employees in the private sector in Egypt to EGP 3,000 (approximately USD 97). This is an increase from EGP 2,700 from earlier this year.

ABOUT FRAGOMEN

Fragomen is the world’s leading single-focus provider of immigration services and support. Our firm is comprised of law practices and immigration consultancies that work together to support our clients across all regions globally. At Fragomen, we leverage our collective immigration experience to offer clients targeted and trusted solutions that help them achieve their local, regional and worldwide business goals.

Fragomen’s team of dedicated immigration professionals has extensive experience in working with multinational businesses, local employers, start-ups and individual investors. We have a deep understanding of the region and maintain strong professional relationships with immigration authorities. Our MENA immigration team is supported on a global basis by over 3,800 immigration professionals in more than 50 offices worldwide. Together, we provide comprehensive immigration support in over 170 countries.

All we do is immigration, a sole focus that makes a considerable difference. Unlike many other providers, all of our thinking, passion and resources are dedicated to improving the immigration experiences of our clients and their employees. We have the track record, region specific experience and know-how to provide you with a streamlined and compliant immigration solution.

Visit our website www.fragomen.com or contact us at [email protected] to learn more about our company and services.