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April 15, 2024

“441 non-compliant establishments were fined for localization decisions.”


The Ministry of Human Resources and Emiratization revealed that 441 private establishments have committed violations of localization decisions in the private sector since the second half of 2022 until today. Among them, 436 establishments were found to have hired citizens nominally (without actual employment), and five establishments have circumvented localization targets.

The ministry announced that penalties and financial fines were applied to the non-compliant establishments, in addition to administrative measures and the suspension of financial benefits provided by the “Nafis” program for citizens hired nominally in these establishments. This action was taken in accordance with Cabinet Resolution No. 44 of 2023, which modified some provisions of Cabinet Resolution No. 95 of 2022 concerning violations and administrative penalties related to the initiatives and programs of the competitive Emiratisation Council “Nafis”.

The ministry emphasized in a press statement that it deals firmly with any violation of localization decisions and does not compromise on the enforcement of sanctions. This is done to achieve the objectives and initiatives of Emiratisation policies, which aim to enhance the Emirati human development system and create a productive and sustainable national human capital in the private sector to achieve active economic participation for citizens.

The ministry praised private sector establishments that comply with localization decisions and actively engage in achieving its goals, considering them as partners of the government in this national priority that receives support and attention from the wise leadership.

Besides imposing financial fines, the violating establishments have been downgraded to the third category within the classification system of private sector establishments registered with the Ministry of Human Resources and Emiratization. This leads to several consequences for these establishments, including paying higher fees for the ministry’s services compared to establishments in the first and second categories.

The ministry refers establishments that commit serious violations of localization decisions to the Public Prosecution for legal actions. It also cancels work permits for citizens who were found to have been hired nominally, and requires non-compliant establishments to pay the required financial contributions since they did not meet the targeted localization requirements. Additionally, the ministry coordinates with the “Nafis” program to suspend the financial support provided to citizens hired nominally, and takes steps to recover the received amounts.

The ministry urged citizens not to accept nominal positions in the private sector, especially since the financial support provided by the “Nafis” program aims to empower them with real jobs rather than nominal positions, allowing them to effectively participate in their job roles within the private sector and contribute to the country’s developmental journey in various fields.

Furthermore, the ministry called on citizens employed in the private sector and the general public to report any violations related to Emiratisation policies through the ministry’s official channels, whether through the call center at 600590000 or through the smart application.

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