Companies in the UAE that fail to meet Emiratization policies face strict penalties under the latest Emiratization 2026 regulations. These penalties are designed to ensure businesses actively contribute to the integration of Emirati talent in the private sector.
1. Financial Fines for Unmet Emiratization Targets
- Companies with 50 or more employees must increase their Emirati workforce by 2% annually in skilled jobs.
- Failure to meet this target results in a fine of AED 96,000 per unfulfilled Emirati position in 2024.
- This fine increases annually, reaching AED 108,000 in 2025 and continuing to rise as enforcement tightens.
2. Restrictions on Work Permits & Business Operations
- Non-compliant companies may face suspensions or delays in work permit approvals from MOHRE.
- They could be blacklisted from participating in government contracts and tenders, affecting business opportunities.
3. Classification Downgrade & Additional Costs
- Businesses failing to comply with Emiratization in Dubai may be downgraded to a lower MOHRE classification, leading to:
- Higher visa and work permit fees.
- Loss of government subsidies and incentives.
4. Potential Legal Consequences
- False Emiratization reporting (ghost hiring of Emiratis without actual employment) can result in hefty penalties and legal action against the company.
To avoid these penalties, companies should proactively hire and retain Emiratis, leveraging government incentives and recruitment support under Emiratization 2026.
Companies looking for help can also contact Born2Localize for an Emiratization Consultation with Born2Localize CEO Miss Fatima Alloghani, a distinguished leader in crafting comprehensive Emiratization consultation strategies with over 20 years of multi-industry expertise. Her illustrious career spans strategic contributions across Energy, Aviation, Maritime, Banking, Mega Events, and Retail, holding pivotal roles in renowned organizations like Schlumberger Oil and Gas Services, Dubai World, Etihad Airways, Total ABK Academy, Abu Dhabi Terminals, Expo 2020 Dubai, Abu Dhabi Commercial Bank, and Majid Al Futtaim Group.