A case for A Whistle-blower Law in UAE

Introduction:

Whistle blowing is a difficult process that involves both psychological and organizational
variables, and as phenomena, it appears to be disintegrating. It is the fault of speedy progress in
the modernization of the organization of the twenty-first century that it is getting harder for an
organization to have mandatory inspections and authority in place, making it simpler for
employers and employees to act in ways that violate their professional morality. A current or
former member of an organization making an effort to alert higher authorities or the public about
a significant violation or any misbehavior perpetrated by the organization is known as a
whistleblower.

It is desirable for the public to protect whistleblowers so they may disclose misconduct in an
organization. If you report anything as a worker, you are protected from victimization, using a
"qualifying disclosure" to make the appropriate information available 1. In the UAE, the idea of
whistle blowing is still relatively new. Even though it is a recognized jurisdiction, UAE law does
not specifically define whistle blowing. The laws are thus not rigorously upheld. Junior staff
members were unwilling to come out and publicly report a crime due to the uncertainty. But the
current laws are enough. It offers anonymity and protection to whistleblowers if the conditions
are satisfied. In order for whistleblowers to be able to reveal wrongdoing in an organization, the
public needs to see them protected. If you reveal anything as a worker, you are protected from
retaliation by using a "qualifying disclosure" to make the relevant information public. In the
UAE, blowing the whistle is still a relatively new idea. Despite having a recognized legal system,
UAE law does not specifically define whistle blowing. Laws are not properly attached to as a
result. Whistleblowers are given anonymity and protection if the conditions are satisfied. When
laws are not clearly explained, whistleblowers may feel endangered2.

Whistleblower protection is first mentioned in Dubai Law No. 4 of 2016, which addresses
financial offences. Whistleblower protections were introduced for the first time in the UAE.
Everyone must report crimes, according to the UAE penal law.
The most recent and interesting development occurred in June 2021. By establishing an online
whistleblower site, the Central Bank of the UAE (CBUAE) streamlined the reporting process.
The portal may be used by CBUAE salespeople, consultants, and employees to report
inappropriate behavior. Reports can also be delivered verbally or in writing. A person also has
the choice to remain anonymous and not reveal identity; many businesses in the UAE have
formalized their policy regarding whistleblowers. But because there is no federal legislation, it is
weak and impotent.

Enterprises headquartered in Dubai now have duties as a result of the Financial Crime Law's
adoption in 2016 and the establishment of the DIFC Operating Law in 2016. However, according
to legal experts, the government has to create Federal law in order to standardize whistle blowing
throughout all Emirates. However, government agencies in the UAE continuously monitor
businesses to make sure they carry out just and open financial transactions.

Background:

In May 2020, the Federal National Council established and confirmed the nation's first-ever
witness protection scheme as a reaction to the growing demands of whistleblowers. Act against
Financial Crimes The goal of the law is made clear by the title, which focuses on whistleblowers
as sources of information regarding financial crimes. If informants provided real data that may
aid the UAE in defending its interests, they would be shielded from prosecution and punishment.
Due to the fact that it does not specify the specific sorts of retaliation against which a
whistleblower is protected by the law, this protection falls well short of what is required.
Although whistleblowers were given freedom and protection under the law, these standards are
too broad for us to accept seriously. Although rewards and anonymity were never considered to
be significant whistleblower benefits in the UAE, these aspects may soon start to change.
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1
Chamorro-Courtland, C., & Cohen, M. (2017). Whistleblower laws in the financial markets:
Lessons for emerging markets. Arizona Journal of International & Comparative Law, 34(2).
2
Dilshad, W., Irfan, M., Javed, S. M. K., & Aftab, Z. (2020). Empirical evidence of forensic
auditing and whistleblower on fraud control, organizational performance; A case study of public
and private sectors of Pakistan. Journal of Accounting and Finance in Emerging
Economies, 6(4), 955-966.
Although the new legislation covers a wider range of offences, including as terrorism, money
laundering, and state security, it still lacks anonymous alternatives and rewards. There is
currently no further information accessible, but it is clear from the UAE's strategy that the
interests of the group come before those of the individual. The following would be apparent if
we were to draw comparisons between the new UAE law and Western policy:
 In the UAE, the penalties for divulging the informant's identity range from 6 months in
jail to the death penalty.
 Whistleblowers are rarely made whole for their losses, however, the UAE may amaze
with payouts to informants.
 The UAE takes whistle blowing seriously; individuals who are expected to report
misbehavior but do not do so face a $10,000 punishment. Those seeking revenge on spies
could expect to pay close to $30,000.

Literature Review:
A crucial ethical concern, whistle blowing protects against the negative social, economic, and
environmental effects of multinational businesses dominating international marketplaces 3.
Organizations must use ethical processes to prevent any unethical behavior in addition to
behavior standards, but they also depend on individuals who are open to change, anyone who
4.
observes unethical, aggressive, or illegal behavior need to report it Exteriorization of removing
unethical behavior is necessary, and members must believe that tolerating unethical behavior is
neither in their best interests nor the best interests of the company 5. Whistle blowing is seen as a
critical tactic to raise organizational responsibility and sole answerability.
Whistle blowing is a challenging procedure that incorporates organizational and psychological
factors, and as a phenomenon, it seems to be fading. It is the fault of hurried advancement in the
modernization of twenty-first century organizations that it is becoming more difficult for an
organization to have mandatory inspections and authority in place, making it easier for
employers and employees to act in ways that violate their professional morality. Whistleblowers
are current or former members of an organization who work to inform superiors or the general
public of serious violations or other wrongdoing committed by the organization.
Research Gap:

The public wants to see whistleblowers protected so they may report wrongdoing in an
institution. By employing a "qualifying disclosure" to make the proper facts public, you are
shielded from persecution if you disclose something as a worker. Whistle blowing is still a
relatively new concept in the UAE. Despite being a recognized jurisdiction, UAE law does not
define whistle blowing in detail. As a result, laws are not strictly followed. Because of the
ambiguity, junior staff employees were hesitant to come out and openly disclose a crime. But the
existing laws are sufficient. If the requirements are met, it provides whistleblowers with
anonymity and protection. Whistleblowers may feel threatened when laws are not fully
explained. In these situations, the individual who wants to expose misconduct must first speak
with an experienced attorney.

Objective of the study:

The primary goal of this research is to identify the reasons why whistle blowing is still a
relatively new phenomenon in the UAE. It also intends to look at the impact of introducing
whistle blowing in the UAE.

Legal Issues and Questions

The following legal concerns of whistle blowing must be addressed by the thesis due to the
complexity and unsolved issues:

 What federal laws should be enforced to implement whistle blowing in UAE?

 What are the reasons that Whistle blowing is still a relatively new concept in the UAE?
 Why UAE law does not specifically define whistle blowing?

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3
W. J. Weiss, Organizational ethics, 4th ed., Thompson/South West: Ontario, 2006.
4
Stevens, L., 2011. Essential technical analysis tools and techniques to spot market trends
5
D. Rossouw, Organizational ethics in Africa, 2nd Ed.Oxford University Press: Cape Town,
2002.
Methodology:

To best emphasize the topics under consideration, this thesis makes use of several legal statutes
and court instances. In order to support its claims, this study draws on secondary legal sources
such court and tribunal rulings, statutes, relevant publications, books, and websites.

Ethical Consideration:

To ensure that ethical concerns were addressed, the identities of all sources would be concealed.
No information will be released to a third party without the participant's approval.