More than 1,300 private companies in the United Arab Emirates are facing staggering financial penalties. Authorities have uncovered a widespread scheme involving fake jobs created specifically to circumvent the nation’s workforce nationalization laws. The fines total millions of dirhams.
The crackdown targets firms found guilty of “fake Emiratisation,” a practice where companies falsely appoint UAE nationals to positions without assigning them real work. It’s a direct violation of policies designed to integrate more citizens into the private sector workforce. The move sends a clear signal. The government is serious about genuine employment for its citizens.
A Nationwide Investigation Uncovers Widespread Fraud
The Ministry of Human Resources and Emiratisation (MoHRE) confirmed the violations after a series of intensive inspections and data analysis. These 1,300 companies, operating across various sectors, were found to have manipulated hiring records to meet mandatory Emiratisation quotas. This wasn’t a minor infraction; it was a calculated effort to deceive regulators.
Officials stated that the fraudulent activity undermines the core objectives of the nation’s economic and social development plans. The Emiratisation program is a key pillar of the UAE’s strategy to build a sustainable, knowledge-based economy driven by local talent. These companies attempted to gain the benefits of compliance without making a genuine contribution, a situation the ministry has now acted upon decisively.
The Mechanics of Fake Emiratisation
The scam varied in its execution, but the goal was always the same: to appear compliant on paper. In many cases, companies would hire a UAE national and pay them a salary, but the role itself was a sham. The employee would have no real duties, no path for career growth, and sometimes was not even required to show up for work. This practice artificially inflates a company’s Emiratisation numbers.
MoHRE identified these schemes by cross-referencing wage protection system data, company records, and conducting on-site visits. The ministry has become increasingly sophisticated in its ability to spot irregularities that suggest a position is not genuine. The government’s message is that compliance must be substantive, not just a box-ticking exercise.
Severe Penalties for Non-Compliance
The consequences for the offending firms are severe and multi-faceted. The government is not just issuing warnings. It is imposing significant financial and administrative punishments to deter future violations. For companies caught in the act, the penalties are designed to be a powerful deterrent.
According to MoHRE, the repercussions for engaging in fake Emiratisation include:
- A fine of AED 20,000 for each fake employment case.
- Escalating fines that can reach up to AED 100,000 per case for repeat offenses.
- The requirement to repay any financial support the company received from government programs like Nafis.
- Referral of the case to the Public Prosecution for potential criminal proceedings.
- A downgrade of the company’s official classification, restricting its ability to secure government contracts and other benefits.
This strict enforcement framework highlights the UAE’s unwavering commitment to the policy. The goal is to ensure that every job created under the Emiratisation quota is a real, productive, and meaningful role that contributes to the national economy and the individual’s professional development.