More than 500 UAE companies fined for breaking Emiratisation rules

Private sector now employs over 81,000 Emiratis at 17,000 companies

By January 1, companies in the UAE with 50 employees or more must ensure that 3 per cent of their workforce is Emirati. Emirates Global Aluminium's (pictured) Emiratisation rate exceeds 42 per cent. Bloomberg

Private companies with 20 to 49 employees must hire at least one UAE citizen by 2024 and another by 2025. Silvia Razgova / The National

Semi-government owned companies such as Strata, which makes aircraft parts, are major employers of Emiratis. The government wants more private companies to hire Emiratis. Photo: Mubadala

Young Emiratis are being encouraged to look to the private sector, instead of the government, for opportunities. Satish Kumar / The National

Sheikh Mansour bin Zayed, Vice President, Deputy Prime Minister and Minister of the Presidential Court, and Sheikh Abdullah bin Zayed, Minister of Foreign Affairs, chair the National Competitiveness Council. Photo: UAE Government Media Office

Abdulrahman Al Awar, Minister of Human Resources and Emiratisation, said a greater mix of Emiratis and foreign talent will make the country more competitive. Victor Besa / The National

The UAE has fined more than 500 companies for breaking Emiratisation rules.

Latest figures, released on Wednesday, show that more than 81,000 Emiratis are employed in the private sector, up from 79,000 at the start of July. They are employed by 17,000 companies.

From July 7, private sector companies with at least 50 employees needed to ensure that Emiratis made up made up 3 per cent of their workforce.

A total of 565 companies have been penalised for false Emiratisation since June last year, with 129 companies fined since July.

False Emiratisation includes family members being hired with no real role, or forging employment records by obtaining false work permits in the name of UAE citizens.

The Ministry of Human Resources and Emiratisation said the penalised companies have been issued with fines ranging from Dh20,000 to Dh100,000.

It said those companies no longer receive financial benefits from the Emirati Talent Competitiveness Council programme for employing UAE nationals.

Companies that violate the rules are also downgraded to the lowest categories within the private sector classification system. This means they now face higher service fees for work permits and transfer fees. Instead of paying only Dh250 for certain permits, they will pay Dh3,750.

UAE authorities had previously warned private companies against posting misleading job adverts and offering unskilled positions and reduced salaries to citizens under the country's Emiratisation drive.

Employers at eligible companies are required to reach a 4 per cent target by the end of the year, increasing to 6 per cent by the close of 2024, 8 per cent the following year and 10 per cent by the end of 2026.

In July, small businesses were told they must recruit Emiratis to their workforce in a major expansion of the drive.

Companies with 20 to 49 employees must hire at least one UAE citizen by next year and another by 2025.

The requirement applies to privately-owned companies across 14 sectors, including real estate, education, construction and health care.

Previously, only firms with 50 or more employees needed to meet the targets on hiring UAE citizens.