UAE Intensifies Crackdown on Fake Emiratisation as Fines Reach AED 500,000

The UAE Ministry of Human Resources and Emiratisation has intensified enforcement against fake Emiratisation and attempts to circumvent national employment requirements.

MoHRE detected 377 cases of fake Emiratisation involving 266 private-sector companies during the first half of 2026, using its field and digital monitoring systems. Legal action has been taken against the companies and other parties involved. The Ministry stressed that the detected cases remain limited and do not represent a widespread practice across the UAE labour market.

Fake Emiratisation occurs where a UAE national is registered as an employee and issued a work permit and employment contract without a genuine employment relationship or actual job responsibilities. Such arrangements may be used to artificially satisfy Emiratisation targets or to improperly access incentives and financial support intended to promote genuine employment of UAE nationals.

MoHRE has emphasised that genuine Emiratisation requires an actual and productive employment relationship, including real duties, responsibilities and opportunities for professional development.

The UAE's enforcement framework distinguishes between different types of violations. Under Cabinet Decision No. 43 of 2025, establishments that engage in fake Emiratisation connected with Nafis initiatives may face administrative penalties of between AED 20,000 and AED 100,000 per worker, together with measures relating to Nafis support and recovery of benefits where applicable.

Companies found to be circumventing Emiratisation targets by reducing workforce numbers, modifying workforce classifications or using other methods of circumvention can face escalating penalties of:

• AED 100,000 for a first offence

• AED 300,000 for a second offence

• AED 500,000 for a third or subsequent offence

These penalties are expressly provided for in Cabinet Decision No. 43 of 2025. Depending on the violation, other consequences may include suspension or recovery of Nafis benefits and referral for further legal proceedings.

MoHRE is increasingly using artificial intelligence, data analytics and risk indicators to identify potentially non-compliant establishments and focus inspection activity on higher-risk companies and sectors. Approximately 212,000 inspection visits were conducted during the first half of 2026. MoHRE reported that the number of establishments found violating labour-market legislation decreased by 15% compared with the same period in 2025. The Ministry has said it will continue developing its digital monitoring and verification systems to identify unusual practices and protect both Emirati employees and businesses complying with the rules.

Private-sector companies with 50 or more employees are required to increase the number of UAE nationals employed in skilled positions by 2% annually, divided into a 1% requirement for each half of the year. Companies subject to Emiratisation requirements should therefore ensure that compliance reflects genuine recruitment and employment rather than merely satisfying numerical targets.

NUR Advisory Note

Emiratisation compliance should be treated as an ongoing HR and corporate compliance responsibility rather than a year-end administrative exercise. Companies subject to Emiratisation requirements should maintain clear evidence that Emirati employees have genuine roles, appropriate job descriptions, actual responsibilities, regular salary payments and an identifiable reporting and career structure.

Businesses should also be particularly cautious about arrangements designed primarily to alter workforce numbers or employee classifications for the purpose of meeting Emiratisation targets.

As MoHRE increasingly relies on integrated data, artificial intelligence and risk-based inspections, discrepancies between employment contracts, payroll records, work permits and actual employment arrangements may become easier for the authorities to identify.

Companies should therefore periodically review their Emiratisation records as part of their wider HR compliance procedures.