UAE Company Fined Dh10 Million for Fictitious Emiratisation Practices

A private company in the United Arab Emirates has been fined Dh10 million for failing to adhere to the Emiratisation standards and controls that regulate the private sector, authorities announced on Monday. The Abu Dhabi Misdemeanour Court ruled that the company had attempted to bypass Emiratisation targets by appointing 113 UAE nationals in fictitious roles.

The Ministry of Human Resources and Emiratisation (MoHRE) conducted an investigation and identified serious breaches in the company’s Emiratisation procedures. These violations led to the case being referred to the Abu Dhabi Public Prosecution for further investigation.

Fictitious Employment and Regulatory Violations

The investigation uncovered that the company had issued work permits and registered employees in fictitious roles, without any actual employment taking place. This misuse of the Nafis programme—an initiative designed to offer companies benefits and privileges to enhance Emirati participation in the private sector—was deemed a direct violation of the programme’s objectives and regulations.

The Abu Dhabi Public Prosecution subsequently referred the case to the competent court. After a comprehensive review, the court convicted the company of non-compliance with Emiratisation policies and of engaging in fictitious employment practices. The company’s actions were considered a serious breach of the regulations meant to ensure genuine employment for Emirati citizens.

Nafis Programme and Emiratisation Regulations

The UAE government is committed to enforcing Emiratisation regulations to ensure that Emirati citizens have genuine employment opportunities within the private sector. The Nafis programme, launched to boost Emirati participation in private companies, represents a significant step in this direction. The programme aims to encourage private sector employers to hire UAE nationals and contribute to their professional development.

According to the Emiratisation regulations, private companies are required to increase the percentage of their Emirati workforce by 2% annually, with a target of reaching at least 10% by 2026. This target is split into two segments: 1% in the first half of the year and another 1% in the second half. This phased approach is designed to ensure a gradual and manageable increase in Emirati representation in the workforce.

Starting from July 1, the Ministry has been rigorously checking companies’ compliance with these targets. Companies that fail to meet the required percentage of Emirati employees will incur a fine of Dh48,000 for each Emirati position not filled in the first six months of the year. This penalty is calculated at Dh8,000 per month per person, with the fine increasing by Dh1,000 annually.

Regular Inspections and Compliance Monitoring

To ensure adherence to Emiratisation rules, regular inspections are carried out. Since mid-2022 until May 16 of the current year, more than 1,300 companies have been found in violation of these regulations. The enforcement of these rules underscores the UAE’s commitment to fostering a robust and inclusive workforce that includes significant participation from Emirati citizens.

Impact on Emirati Employment and Future Outlook

The total number of Emirati employees in the private sector has seen a substantial increase of approximately 170% since the launch of the federal initiative in September 2021. This initiative is part of a broader strategy to enhance the employability of Emiratis in various industries and to support the country’s economic diversification goals.

By ensuring compliance with Emiratisation policies and addressing violations, the UAE aims to create a more equitable job market for its citizens and to promote sustainable economic growth. The stringent measures and substantial penalties for non-compliance reflect the government’s dedication to achieving its Emiratisation targets and supporting the professional development of Emirati workers.