More than 1,200 companies have hired Emiratis illegally in an attempt to get around the UAE's Emiratisation laws, latest figures have revealed.
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.
The numbers involved are for the period from mid-2022 to March 14, 2024.
“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 platform X.
“Harmful practices that aim to undermine Emiratisation commitments will be dealt with firmly and according to the law.”
Penalties in place
Companies that are found to be in breach of the UAE's Emiratisation rules face fines from Dh20,000 to Dh100,000 for each case.
There is also the risk of being referred to prosecutors depending on the severity of the offence, according to the ministry.
Companies in breach must also make financial contributions towards Emiratisation targets and will be classified in 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.
Emiratisation project
There are currently 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.
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 ultimate goal of hitting 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 2024 and another by 2025.
The requirement applies to privately owned 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 further boost Emiratisation in the private sector.
A new target was set for the country's Nafis programme, which launched in 2021, to ensure 36,000 citizens join the private sector workforce in 2024, the state news agency Wam reported.
Points to remember
- Debate the issue, don't attack the person
- Build the relationship and dialogue by seeking to find common ground
- Express passion for the issue but be aware of when you're losing control or when there's anger. If there is, pause and take some time out.
- Listen actively without interrupting
- Avoid assumptions, seek understanding, ask questions
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The specs
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The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
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Need to know
The flights: Flydubai flies from Dubai to Kilimanjaro airport via Dar es Salaam from Dh1,619 return including taxes. The trip takes 8 hours.
The trek: Make sure that whatever tour company you select to climb Kilimanjaro, that it is a reputable one. The way to climb successfully would be with experienced guides and porters, from a company committed to quality, safety and an ethical approach to the mountain and its staff. Sonia Nazareth booked a VIP package through Safari Africa. The tour works out to $4,775 (Dh17,538) per person, based on a 4-person booking scheme, for 9 nights on the mountain (including one night before and after the trek at Arusha). The price includes all meals, a head guide, an assistant guide for every 2 trekkers, porters to carry the luggage, a cook and kitchen staff, a dining and mess tent, a sleeping tent set up for 2 persons, a chemical toilet and park entrance fees. The tiny ration of heated water provided for our bath in our makeshift private bathroom stall was the greatest luxury. A standard package, also based on a 4-person booking, works out to $3,050 (Dh11,202) per person.
When to go: You can climb Kili at any time of year, but the best months to ascend are January-February and September-October. Also good are July and August, if you’re tolerant of the colder weather that winter brings.
Do not underestimate the importance of kit. Even if you’re travelling at a relatively pleasant time, be geared up for the cold and the rain.
The Melbourne Mercer Global Pension Index
The Melbourne Mercer Global Pension Index
Mazen Abukhater, principal and actuary at global consultancy Mercer, Middle East, says the company’s Melbourne Mercer Global Pension Index - which benchmarks 34 pension schemes across the globe to assess their adequacy, sustainability and integrity - included Saudi Arabia for the first time this year to offer a glimpse into the region.
The index highlighted fundamental issues for all 34 countries, such as a rapid ageing population and a low growth / low interest environment putting pressure on expected returns. It also highlighted the increasing popularity around the world of defined contribution schemes.
“Average life expectancy has been increasing by about three years every 10 years. Someone born in 1947 is expected to live until 85 whereas someone born in 2007 is expected to live to 103,” Mr Abukhater told the Mena Pensions Conference.
“Are our systems equipped to handle these kind of life expectancies in the future? If so many people retire at 60, they are going to be in retirement for 43 years – so we need to adapt our retirement age to our changing life expectancy.”
Saudi Arabia came in the middle of Mercer’s ranking with a score of 58.9. The report said the country's index could be raised by improving the minimum level of support for the poorest aged individuals and increasing the labour force participation rate at older ages as life expectancies rise.
Mr Abukhater said the challenges of an ageing population, increased life expectancy and some individuals relying solely on their government for financial support in their retirement years will put the system under strain.
“To relieve that pressure, governments need to consider whether it is time to switch to a defined contribution scheme so that individuals can supplement their own future with the help of government support,” he said.
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
The five pillars of Islam
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
Killing of Qassem Suleimani
