UAE Cracks Down on Bogus Emiratisation: Over 1,000 Companies Penalized for Violations
The UAE Ministry of Human Resources has taken strict action against 1,077 companies found in violation of Emiratisation regulations since mid-2022. These firms, which collectively hired 1,818 citizens in breach of Emiratisation laws, now face penalties and financial fines. The crackdown aims to curb the practice of bogus Emiratisation, where Emiratis are placed in nominal roles without substantive tasks to meet required Emiratisation targets. Companies attempting to manipulate data and benefits related to Emiratisation by rehiring UAE nationals within the same establishment are also being penalized.
Penalties for private sector firms range from Dh20,000 to Dh100,000, with the amount determined based on the severity of the violations. In addition to financial penalties, offending companies registered with the ministry may face downgrades to the lowest category for engaging in fraudulent Emiratisation practices, constituting a significant setback for these entities. The tightened Emiratisation laws implemented in 2024 mandate small and medium enterprises with 20 to 49 employees to employ at least one UAE citizen. Emphasis on indigenization extends to 14 selected occupational sectors, with a goal of creating significant employment opportunities. Reporting of violations is encouraged through the Ministry’s helpline at 600590000 or its smart application.
