UAE Implements Indigenization Measures: Heavy Fines Imposed on Private Companies

2023-07-19 14:55:23

Dubai: The UAE has announced that it will strongly implement indigenization. The UAE government has taken tough measures against private companies. Heavy fines have been imposed on 441 private companies. These are the figures for the second half of 2022 so far. Human Resources and Emiratisation informed that they have done fake procedures for naturalisation.

436 companies were fined for providing wrong information. Five companies were fined for fraud. Fines and bans are imposed on such companies. These companies were employing UAE citizens through fake naturalization. They did not get any financial benefits. This is just to ensure compliance with the law.

The ministry has stated that strict action will be taken against those who violate the naturalization decisions. Apart from imposing fines, the offending companies will also be relegated to the lowest category. This will create huge problems for private companies. It includes all the high fees charged for mohre services. The ministry warns that they will have to face legal action.

At the same time, the authorities say that the work permits of UAE nationals who are employed in violation of the law will be cancelled. Companies will be fined heavily. The spokesperson of the ministry said that those working in private companies should inform the authorities if they see such violations. Toll free numbers are also provided for this purpose. Officials also said that they can inform through smart application.

The ministry indicates that complaints have been received against such companies in the past. The UAE has already announced that privatization will be tightened in companies with 20 employees. Companies with more than 20 employees must employ at least one local resident in the company during the year.

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