Sham Emiratisation is now treated as fraud, not paperwork

Dubai Courts have held that “sham employment” — placing an Emirati on the payroll to satisfy a quota without a real job behind it — is a crime against public funds rather than an administrative infraction, prosecutable as fraud. Judge Hamda Ahli of the court's labour division described it as a misuse of state resources and a betrayal of public trust.

The position is codified. Federal Decree-Law No. 9 of 2024 and Cabinet Resolution No. 43 of 2025 list sham employment, quota non-compliance, falsified documents and withholding Emirati wages or benefits as grave breaches. Penalties run from suspension of government support and repayment of misused funds through to fines and, for repeat offenders, suspension or cancellation of the licence.

Where forgery or fraud is proven, owners and managers face personal criminal liability, including the possibility of imprisonment. That is a different risk category from a quota fine absorbed by the company.

The defence is evidence: a real job description, real duties, real attendance and real output, documented as a matter of routine rather than assembled after an inspection.