New classification system for companies to be implemented

31 May 22



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

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