UAE identifies more than 1,000 companies faking Emiratisation, fines violators up to Dh 100,000

DUBAI: The UAE human resource ministry has identified 1,077 companies that have violated Emiratisation regulations since mid-2022. The authority penalised these firms which hired 1,818 citizens by violating Emiratisation laws. The UAE has tightened Emiratisation laws to ensure employment of its nationals. An inspection was carried out in the context of many companies continuing to indulge in bogus Emiratisation.

Emiratisation is considered fake when an Emirati works in a nominal job without real tasks to meet a company's required Emiratisation targets and/or when a UAE national is rehired in the same establishment to circumvent data and benefits of Emiratisation. Apart from imposing financial penalties, private sector firms registered with the ministry are also downgraded to the lowest category for faking. This is a huge setback for private companies.

Fines range from Dh20,000 to Dh100,000 for private companies that violate the law. The amount of penalty will be determined based on the extent of the violations. Any such violations can be reported at 600590000 or the Ministry’s smart application.

From 2024, the UAE tightened the Emiratisation law. From January 1, the law required that small and medium enterprises with 20 to 49 employees employ at least one UAE citizen. Indigenization is to be followed in 14 selected occupational sectors. There are 12,000 companies operating in the UAE with 20 to 49 employees. Officials estimate that if one person gets a job here, 12,000 people will get a job. By 2025, this number will double.