The UAE has continued its enforcement against companies attempting to circumvent Emiratisation requirements.
During the first half of 2026, the Ministry of Human Resources and Emiratisation recorded 377 cases of fake Emiratisation across 266 private-sector companies.
The figures underline an increasingly important compliance point for employers:
Emiratisation is not satisfied by paperwork alone. The employment relationship must be genuine in substance.
A signed contract, work permit or payroll record will not necessarily protect a company if the arrangement does not reflect real employment.
What Is Fake Emiratisation?
Fake Emiratisation generally refers to arrangements where an Emirati national is formally recorded as employed, but the underlying employment relationship is not genuine.
This may involve situations where:
- the employee does not perform real work;
- the role exists only to increase Emiratisation numbers;
- salary is paid without genuine duties being carried out;
- the employee is registered without meaningful supervision or workplace participation;
- employment records are manipulated to meet a target;
- job classifications are structured artificially to create apparent compliance; or
- an arrangement is created principally to obtain government benefits or avoid Emiratisation contributions.
The key issue is substance.
MoHRE can look beyond the documents and assess whether the individual is actually working as an employee.
A Contract Alone Is Not Enough
Employers sometimes assume that once the correct contract, work permit and salary records exist, the arrangement is compliant.
That approach carries risk.
A genuine employment relationship should ordinarily involve identifiable duties, remuneration, supervision and participation in the employer’s business.
Relevant indicators may include:
- job descriptions;
- reporting lines;
- attendance records;
- work output;
- internal communications;
- access to company systems;
- payroll evidence;
- supervision;
- performance management; and
- evidence that the employee is actually performing the stated role.
Where these elements are absent, the formal documentation may not be enough to establish genuine employment.
Why MoHRE Takes Circumvention Seriously
Emiratisation is not simply an administrative headcount exercise.
The policy is intended to increase meaningful participation by UAE nationals in the private sector.
Artificial arrangements undermine that objective.
For that reason, the regulatory focus is not only on whether an Emirati appears on the company’s records, but whether the role is authentic.
A company that attempts to manipulate its Emiratisation position may therefore face consequences even if the relevant employee has technically been registered.
Penalties Can Be Significant
The consequences of fake Emiratisation can be substantial.
The UAE’s compliance framework provides for escalating administrative fines where companies are found to have circumvented Emiratisation requirements.
Depending on the nature and repetition of the violation, penalties can reach:
- AED 100,000 for a first violation;
- AED 300,000 for a repeat violation; and
- AED 500,000 for a third or subsequent violation.
Those penalties can sit alongside other administrative measures.
Companies may also face consequences affecting their classification, access to incentives or participation in government employment-support programmes.
The commercial cost can therefore go well beyond the immediate fine.
Employers Should Not Treat Emiratisation as a Year-End Exercise
One of the biggest compliance risks is leaving Emiratisation planning until immediately before a target deadline.
Rushed recruitment can create poor hiring decisions and weak documentation.
It can also lead to arrangements that appear artificial.
A better approach is to treat Emiratisation as part of workforce planning throughout the year.
That means considering:
- which roles are genuinely required;
- where Emirati employees can be integrated into the business;
- what training may be necessary;
- how career progression will work;
- who will supervise the role;
- and whether the position reflects an actual operational need.
The objective should be sustainable employment, not temporary numerical compliance.
Salary Payments Should Match Genuine Work
Payroll records are an important part of the compliance picture, but they are not conclusive on their own.
Paying an Emirati employee while providing no genuine duties may still raise concerns.
Likewise, unusual arrangements involving immediate repayment of salary, circular payments or compensation with no obvious relationship to the work performed can attract scrutiny.
Employers should therefore ensure that remuneration arrangements are:
- properly documented;
- commercially credible;
- consistent with the stated role;
- processed through appropriate wage systems; and
- supported by evidence of actual employment.
Job Titles and Duties Need to Be Credible
Another area of risk is artificial job creation.
A company should be able to explain what an Emirati employee does and why the role exists.
If the job title appears senior or specialised but there is no corresponding responsibility, work product or reporting structure, the arrangement may become difficult to justify.
Similarly, creating multiple nominal positions solely to satisfy a numerical target can expose the company to compliance concerns.
The practical question is simple:
Would the role still make commercial and organisational sense if Emiratisation targets did not exist?
That is not the only legal test, but it is a useful internal compliance question.
Employers Should Maintain Proper Evidence
Where the employment relationship is genuine, documentation should demonstrate that.
Employers should retain records showing:
- recruitment and onboarding;
- employment contracts;
- job descriptions;
- attendance;
- salary payments;
- leave records;
- reporting structures;
- performance reviews;
- training;
- work assignments;
- email or system activity where appropriate; and
- changes in role or remuneration.
Good records protect both the employer and the employee.
They also make it easier to respond if MoHRE requests evidence or conducts an inspection.
Internal Audits Can Reduce Risk
Companies subject to Emiratisation requirements should periodically review their Emirati workforce.
The purpose is not simply to count employees.
The review should test whether the underlying relationships remain genuine.
Questions may include:
- Is the employee still performing the stated role?
- Are reporting lines clear?
- Is salary being paid correctly?
- Are attendance and leave properly recorded?
- Has the employee received appropriate work and training?
- Does the role exist in practice as well as on paper?
- Are any records inconsistent with the actual employment arrangement?
Problems identified internally are easier to address before they become enforcement issues.
Employees Can Also Face Consequences
Fake Emiratisation schemes do not necessarily expose only the company.
Where an individual knowingly participates in a fictitious arrangement, particularly where benefits or incentives are improperly obtained, the employee may also face consequences.
This makes it important for Emirati jobseekers to understand the nature of the role they are accepting.
A legitimate opportunity should involve real work, real responsibilities and genuine employment.
The Wider Compliance Picture
The 377 cases recorded in the first half of 2026 should be viewed in context.
Most companies subject to Emiratisation requirements are complying with their obligations, and Emirati participation in the private sector continues to grow.
The enforcement figures therefore highlight a narrower but important issue: deliberate circumvention.
For compliant employers, the lesson is not that Emiratisation is inherently risky.
It is that substance matters more than form.
What Employers Should Do Now
Businesses subject to Emiratisation requirements should review their existing arrangements before the next compliance deadline.
A practical review should focus on:
- genuine job functions;
- actual work performed;
- salary records;
- attendance;
- reporting lines;
- supervision;
- training;
- documentation; and
- consistency between official records and workplace reality.
Where concerns are identified, they should be addressed promptly rather than left until an inspection or enforcement action occurs.
Conclusion
The UAE’s action against 266 companies over 377 fake Emiratisation cases reinforces the seriousness with which the authorities are treating circumvention.
A formal employment contract alone is not enough.
What matters is whether the employee is genuinely part of the business, performing real work under a legitimate employment relationship.
For employers, the central compliance principle is straightforward:
Emiratisation must exist in practice, not only on paper.
Al Kabban & Associates
For businesses seeking guidance, Al Kabban & Associates, with over 30 years of experience in UAE law and recognition by Legal 500, stands ready to help corporations build resilience against legal risks while ensuring compliance with local and international standards. For more information or to schedule a consultation, contact us at +971 4 453 9090 or visit www.alkabban.com. You can also follow us on social media for more updates on everything law related in the UAE: @Alkabban_Law
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