UAE Takes Action Strict Against 113 Companies Involved in Fake Emiratization

The Ministry of Human Resources and Emiratization (MOHRE) has taken decisive action against companies violating Emiratization regulations, including ‘fake Emiratization’, referring 113 private entities to the Public Prosecution for violations. This stern move underscores the government’s commitment to upholding Emiratization initiatives.

Out of the implicated companies, 98 were found appointing citizens to ‘fake Emiratization’ positions, while 15 were engaging in practices to evade Emiratization targets. The cumulative count of companies breaching Emiratization norms from the second half of 2022 to the present stands at 894. Shockingly, 1,267 UAE nationals have been identified as being employed in sham Emiratisation roles.

Strict Consequences

The MOHRE issued a stern warning, emphasizing its uncompromising stance on violators. The statement affirms that continuous monitoring through the Ministry’s digital and field supervisory system has revealed the extent of non-compliance among private sector companies. The implicated companies face substantial penalties, including a Dh20,000 fine for each fake Emiratisation case and a downgrade to the lowest category within the MOHRE’s classification system for private sector companies.

Stringent Measures in Place

Apart from fines, violating companies will incur higher service fees due to their lowered classification. The Ministry imposes more significant fees on companies in the lowest category (third category) compared to those in the first and second categories. Additionally, companies must fulfill the actual Emiratisation target and make financial contributions related to Emiratisation.

Individual Accountability

Individuals proven to be involved in fake Emiratization schemes face suspension from the benefits of the Nafis programme, and any financial gains obtained through such practices will be recovered. This collaborative effort involves coordination with the Emirati Talent Competitiveness Council and aligns with relevant UAE Cabinet Resolutions.

Understanding ‘Fake Emiratization’

The term ‘fake Emiratization’ refers to situations where a UAE national is employed in a nominal role without genuine responsibilities to meet the company’s Emiratisation targets. It also encompasses cases where an Emirati is rehired within the same company to circumvent Emiratisation targets and exploit associated benefits.

Legal and Administrative Measures

For companies proven to have evaded Emiratization targets, the Ministry has implemented a range of legal and administrative measures. This includes a Dh100,000 administrative fine for each company, financial contributions for failing to achieve the annual Emiratization growth rate, and a directive to attain the actual Emiratization rate. Non-compliant companies in this category are also referred to the Public Prosecution. The comprehensive measures underscore the government’s commitment to fostering genuine Emiratisation efforts within the private sector.