UAE businesses are facing challenges in obtaining work visas for new employees of South Asian nationalities due to a government directive aimed at enhancing workforce diversity.
Abeer Al Husseini, a partner at immigration law firm Fragomen in Dubai, informed news reporters that the Ministry of Human Resources and Emiratisation has "reinstated" its demographic diversification regulation.
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| Dubai Workforce Diversity Rule |
"This rule has been in place for some time, though certain elements may not have been actively enforced," she explained.
"However, its enforcement became more evident when some of our mainland clients were notified to comply with the rule. These notifications were specifically related to new work permit applications."
Al Husseini noted that under this rule, companies must diversify the nationalities within their workforce, potentially limiting applications from nationalities that constitute 20 percent or more of the company's current workforce. "The specifics of which nationalities to exclude may vary depending on the organization's diversity mix. Recently, our clients received similar prompts when filing applications for South Asian nationals," she said.
Libbie Burtinshaw, head of operations at visa services provider PRO Partner Group, also reported numerous rejections in visa applications for employees from India and Pakistan, indicating that companies may need to "reevaluate their hiring."
With over 200 nationalities living and working in the UAE, Indians form the largest foreign community, about 35 percent of the population, followed by Pakistanis and Bangladeshis. Helen Barrett, a partner at CBD Corporate Services in Dubai, expects sectors like construction to have specific quotas.
Al Husseini highlighted that the rule mainly targets unskilled professionals, and its applicability to highly skilled professionals remains uncertain, though it seems less likely.
Imminent revisions to the policy, part of the mainland company classification regulation, are expected later this month. Achieving a higher tier classification requires "commitment to manpower planning by promoting cultural and demographic diversity in the labor market," Al Husseini said. Higher tiers offer incentives, exemptions, and benefits in government tenders.
Pamela Lilburne Opie, CEO and founder of Linen Obsession Textile Trading LLC, remarked that the rule "does not seem to apply" if a company maintains the correct number of Emirati employees. Her company finds the rule challenging, as most department store sales staff come from one or two main nationality groups, which are not Emirati. "This is a significant issue, especially as it can be difficult to find and attract Emirati employees."
An anonymous Dubai business owner described the new policy as "difficult." He emphasized that while workplace diversity is valuable, it should not be enforced as it could cause friction. "We focus on merit, affordability, and team culture fit – and nationality is part of that decision. This also affects salaries as some nationalities have different pay expectations here."
As the directive's enforcement is recent, Al Husseini noted that details are still evolving. Conversations with the Ministry of Human Resources and Emiratisation and clients indicate that the rule primarily affects new visa applications for mainland companies and does not currently apply in free zones. The ministry did not respond to requests for comment.
Published on Dubaitowa.