More than 1,200 companies breach Emiratisation rules with illegal hiring

More than 1,200 companies have hired Emiratis illegally in an attempt to get around the UAE’s Emiratisation laws, the latest figures show.

The Ministry of Human Resources and Emiratisation said the breaches concern the employment of 1,963 Emiratis, in which companies were found to be using “fake Emiratisation” to circumvent the rules.

“Our inspection team has successfully identified 1,202 private companies that have hired 1,963 UAE nationals illegally through attempting to circumvent Emiratisation targets and engaging in fake Emiratisation from mid-2022 until March 14, 2024,” the ministry said on social media.

“Harmful practices that aim to undermine Emiratisation commitments will be dealt with firmly and according to the law.”

Companies that are found to be in breach of the Emiratisation rules face fines from Dh20,000 ($5,445) to Dh100,000 for each case.

They also risk being referred to prosecutors depending on the severity of the offence, the ministry said.

Companies in breach must also make financial contributions towards Emiratisation targets and will be classified under the lowest ranking on the ministry’s system.

Citizens found to be in breach will have their Emirati Talent Competitiveness Council programme (Nafis) benefits ceased and previous benefits will be recovered, the ministry said.

There are 95,000 Emiratis employed by the private sector, according to the latest figures from the ministry.

More than 20,000 companies have complied with the regulations.

From January 1 last year, private companies with more than 50 employees had to ensure that 2 per cent of staff members were Emirati citizens.

This figure rose to 4 per cent by the end of last year and will rise to 6 per cent this year and 8 per cent next year, with the goal of meeting a 10 per cent target by the end of 2026.

Smaller businesses with 20 to 49 employees must hire at least one citizen by the end of this year and another by the end of next year.

The rule applies to companies in 14 sectors, including property, education, construction and health care.

Previously, only companies with 50 or more employees needed to meet the targets for hiring citizens.

Earlier this month, the UAE approved a Dh6.4 billion budget to boost Emiratisation in the private sector.

A target was set for the Nafis programme to ensure 36,000 citizens join the private sector workforce this year, state news agency Wam reported.