Immigration News - United Arab Emirates New classification system for companies to be implemented Share this article LinkedIn Facebook X (Twitter) May 31, 2022 IMPACT – MEDIUM The Emirati government has announced that it will begin classifying private companies into three tiers based on their compliance with directives. Key Points: Beginning June 1, private companies will be categorized into three tiers depending on how they meet law and wage protection requirements, protect workers’ rights and promote diversity. Work permit costs will be determined by the company’s classification. Companies will be classified as Tier 1 if they meet certain criteria, including: Raising the Emiratization rate at least three times above the target. Training at least 500 UAE nationals annually. Being a business owned by a young UAE national. Being a training center that promotes cultural diversity. Being active in targeted sectors and activities determined by Emirati authorities. Information regarding criteria for Tier 2 is available here and for Tier 3 here. Additional Information: More information regarding the UAE’s new classification system is available here. BAL Analysis: Employers should check their Ministry of Human Resources and Emiratization (MOHRE) profile on June 1 to determine their tier level. This alert has been provided by the BAL Global Practice group. For additional information, please contact berryapplemanleiden@bal.com. Copyright © 2022 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries, please contact copyright@bal.com.