How to Hire and Sponsor Employees in the UAE: 2025 Business Guide
- Radu Lupescu
- Jun 7
- 3 min read
Hiring and sponsoring employees in the UAE is a structured process that ensures legal employment, protects workers’ rights, and helps employers comply with federal labour laws. Whether you’re a mainland company, a free zone entity, or a small business owner expanding your team, understanding the step-by-step requirements of employee sponsorship is crucial.
As of 2025, the UAE has streamlined many aspects of the employment visa and sponsorship process, but businesses must still navigate regulatory approvals, documentation, and compliance requirements. This guide explains how to legally hire, sponsor, and onboard staff in the UAE under the current legal framework.
Who Can Hire and Sponsor Employees in the UAE?
Only UAE-licensed companies are eligible to hire and sponsor employees. This includes:
Mainland companies registered with the Department of Economic Development (DED)
Free zone companies operating under a Free Zone Authority (FZA)
Branches of foreign companies
Entrepreneurs and sole establishments (if authorized to hire under their trade license)
Employers act as sponsors for their employees, which means they are legally responsible for the employee’s work visa, health insurance, and general compliance during employment.
Step-by-Step Guide to Hiring and Sponsoring Employees (2025)
1. Confirm Employment Quota
Each company has a visa quota, which determines how many employees it can sponsor. The quota is based on:
Office size or warehouse space
License type (mainland or free zone)
Business activity and sector
Emiratisation requirements (for companies with 50+ employees)
Quotas can be increased by request, subject to approval from MOHRE (for mainland) or free zone authorities.
2. Offer Letter and Employment Contract
Employers must issue a MOHRE-compliant job offer letter, which includes:
Job title
Salary and allowances
Working hours
Probation period
Annual leave entitlement
Once accepted, this is followed by a standard UAE employment contract, signed electronically and submitted through MOHRE or the relevant free zone portal.
3. Apply for a Work Permit (Labour Approval)
For mainland companies:
Submit an application to the Ministry of Human Resources and Emiratisation (MOHRE)
Labour permit validity: 2 years (renewable)
For free zone companies:
Apply through the Free Zone Authority (e.g., DMCC, RAKEZ, Shams)
Processing time: 5–10 working days
Documents required:
Employee passport copy (valid for 6+ months)
Passport-size photo (white background)
Academic qualifications (attested)
Previous UAE visa or cancellation (if applicable)
4. Medical Test and Emirates ID
After labour approval, the employee must undergo:
Medical fitness test (blood test and chest X-ray)
Biometric registration for Emirates ID at a Federal Authority for Identity and Citizenship (ICP) center
5. Employment Visa Stamping
The final stage involves visa stamping in the employee’s passport, valid for up to 2 years.
After approval:
The employee receives a residency visa linked to your company
Health insurance must be issued (mandatory in most emirates)
Emirates ID is delivered to the address registered during biometrics
Sponsorship Costs (2025 Estimates)
Item | Mainland (AED) | Free Zone (AED) |
Labour approval & fees | 1,000 – 2,500 | 2,000 – 4,000 |
Medical test | 300 – 750 | 300 – 750 |
Emirates ID (2 years) | 370 – 400 | 370 – 400 |
Visa stamping & processing | 1,000 – 2,000 | Included or separate |
Health insurance (basic) | 1,200 – 3,000 | Varies by plan |
Total per employee (approx.) | 4,000 – 8,000 | 5,000 – 9,000 |
Note: Free zones often include visa packages in their license bundles. Mainland employers must manage government fees individually.
Legal Obligations for Employers
As a sponsor, your company must comply with all federal labour regulations, including:
Wages Protection System (WPS) for timely salary payment
Health insurance coverage (mandatory in Dubai, Abu Dhabi, and Sharjah)
Annual leave, sick leave, and end-of-service gratuity under UAE Labour Law
Notification and cancellation of visa upon employee resignation or termination
Violations can result in labour bans, fines, or license suspension.
Hiring Emiratis and Emiratisation Quotas
As of 2025, private companies with 50 or more employees are required to hire UAE nationals under the Emiratisation program. The minimum quota is:
1 Emirati per 50 skilled workers (increasing annually)
The government offers wage subsidies, training support, and Nafis incentives for compliant businesses.
Final Thoughts
Hiring and sponsoring employees in the UAE is a well-defined process that offers businesses access to a diverse, skilled, and globally connected workforce. Whether you’re expanding a mainland company or scaling within a free zone, staying compliant with visa regulations and labour law is key to maintaining your company’s good standing.
With the right planning and documentation, your business can efficiently onboard talent while fulfilling all legal requirements in one of the region’s most stable and business-friendly environments.
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