Table of Contents
Frequently Asked Questions
What does activity code 7810.01 cover for a recruitment business in Dubai
Activity code 7810.01 — Personnel Search, Selection, Referral and Placement Activities, Including Executive Placement and Search Activities — covers the full range of professional recruitment services. This includes identifying and screening candidates, shortlisting, referring individuals to employers, and placing them in permanent or contract roles.
Executive search for senior and C-suite mandates falls under the same code. The activity permits consultancy, referral, and placement services to clients, but does not automatically authorise direct employment or visa sponsorship of placed workers, which requires a separate structure.
What are the main business models within recruitment and placement in Dubai
There are three primary models used by recruitment and placement businesses in Dubai:
- Contingency recruitment: fees are paid by the employer only upon a successful hire, typically 15–25% of the placed candidate's annual salary.
- Retained executive search: the client pays an upfront fee plus milestone payments across the search process, used for senior mandates.
- Temporary staffing: workers are placed on fixed-term contracts, often with the agency managing payroll and visa sponsorship directly.
Each model carries different operational and regulatory implications, particularly around whether the agency acts as a legal employer for the placed workers.
Can a Meydan Free Zone recruitment licence sponsor or employ workers directly
A Meydan Free Zone licence under activity code 7810.01 authorises the business to provide consultancy, referral, and placement services to clients. It does not, by itself, permit the agency to act as the legal employer or visa sponsor for workers being placed.
If your business model requires directly sponsoring or employing placed workers — as is common in temporary staffing — you would need either a separate mainland structure or a licensed staffing entity regulated by the Ministry of Human Resources and Emiratisation (MOHRE).
What role does MOHRE play in regulating recruitment businesses in the UAE
The Ministry of Human Resources and Emiratisation (MOHRE) is the primary federal regulator for private employment agencies operating on the UAE mainland. It sets the licensing framework for firms that sponsor or place workers directly into UAE employment.
MOHRE also issues work permits — over 900,000 new permits were issued in the private sector in a single recent year — and enforces Emiratisation quotas, both of which directly shape the demand environment for recruitment businesses operating in the country.
Why is the UAE considered a strong market for recruitment and placement businesses
The UAE's workforce is approximately 88 to 90 per cent expatriate, creating a structural and continuous dependency on international talent across every major industry. This generates sustained, year-round demand for recruitment services at all levels of the market.
Policy drivers add further momentum. The Emiratisation programme requires private sector companies with 50 or more employees to increase Emirati headcount by 2% annually, creating structured demand for specialist recruiters. Rapid growth in technology, financial services, and healthcare is also generating high-volume executive search mandates as employers compete for a limited pool of qualified professionals.
What is the projected growth rate of the UAE recruitment and staffing market
According to Mordor Intelligence, the UAE staffing and recruitment market is projected to grow at a compound annual growth rate of over 5% through to 2029. This reflects both the scale of the existing market and the structural factors — expatriate workforce dependency, Emiratisation policy, and sector expansion — that continue to drive demand.
The breadth of the UAE's workforce, spanning over 200 nationalities with major professional segments in construction, hospitality, finance, and technology, means recruitment businesses can operate across a wide range of industry verticals and candidate profiles.
What is Emiratisation and how does it affect demand for recruitment services
Emiratisation is a UAE federal policy requiring private sector companies above a certain size to employ a defined proportion of Emirati nationals. Companies with 50 or more employees are currently required to increase their Emirati headcount by 2% annually.
This creates a structured and recurring mandate for recruitment businesses that specialise in sourcing, assessing, and placing national talent. Rather than ad hoc hiring, Emiratisation targets mean client companies must plan and execute Emirati recruitment on a continuous basis — making specialist recruiters a commercially valuable partner rather than an occasional service provider.
What is the difference between contingency recruitment and retained executive search
Contingency recruitment means the agency is only paid if and when a candidate is successfully placed. Fees are typically charged as a percentage of the placed candidate's annual salary — commonly between 15 and 25 per cent — and this model is most common for mid-market roles where multiple agencies may be working on the same brief simultaneously.
Retained executive search involves the client paying an upfront fee to engage the agency exclusively, with further milestone payments made as the search progresses. This model is used for senior and C-suite mandates where the search requires dedicated research, discretion, and a longer timeline. It provides more predictable revenue for the agency but requires a stronger track record to win mandates.
How to Start a Recruitment and Placement Business in Dubai
Dubai's labour market runs on movement. Companies hire fast, visa rules shift, and demand for specialist recruiters stays high across construction, tech, hospitality, and finance. If you understand how to source and place people, there is real and consistent work here.
This guide covers the license you need, where to set up, what MOHRE requires, and how to get your first clients. It does not pad the process. It tells you what to do and in what order.
| Governing authority | Ministry of Human Resources and Emiratisation (MOHRE) |
|---|---|
| License issuing body | DET (mainland) or Meydan Free Zone (free zone) |
| Bank guarantee required | Yes – mandatory before MOHRE approval |
| Candidate placement fees | Prohibited – fees cannot be charged to workers |
| Advertising oversight | UAE Media Council |
| Emiratisation programme | Ministry of Economy – creates structured demand for compliant recruiters |
What a Recruitment and Placement License Covers
There are two distinct activities here, and mixing them up at the application stage causes delays. Know which one you are applying for before you start.
Recruitment and placement means you source candidates, screen them, and place them directly into employment with a client company. The employment contract sits between the candidate and the client. You charge the client a fee. You do not employ the worker yourself.
Manpower supply is different. You employ the workers, then second them to client businesses. The employment relationship stays with your company. This activity needs a separate license and carries heavier compliance duties, including payroll, end-of-service obligations, and insurance.
MOHRE sets the rules for private recruitment agencies placing domestic and blue-collar workers. DET issues the mainland trade license. If you are setting up in a free zone, the free zone authority issues the license, but MOHRE approval is still required if your scope covers domestic worker placement or blue-collar hiring.
The license does not automatically cover payroll processing, PRO services, or visa filing. Those sit under separate activity codes. If you plan to offer them alongside recruitment, you need to add the relevant activities at setup or apply to add them later. Check the Meydan Free Zone business activities list to confirm which codes apply to your model.
Mainland vs Meydan Free Zone: Which Setup Works for You
This is the biggest choice you will make when setting up. Let your clients decide it, not the price.
| Factor | Mainland (DET) | Free Zone (Meydan Free Zone) |
|---|---|---|
| Client access | Open UAE market, including government bodies | Mainly international clients and cross-border placements |
| Foreign ownership | 100% permitted post-2021 for most activities | 100% permitted |
| Office requirement | Physical office required | Flexi-desk options available |
| MOHRE approval | Mandatory for domestic and blue-collar placement | Mandatory for domestic and blue-collar placement |
| Setup cost | Higher – physical office adds overhead | Lower at launch – flexi-desk reduces fixed costs |
| Best suited for | Agencies targeting UAE government and large local corporates | Agencies focused on international hiring, remote placements, cross-border talent |
A mainland license from DET lets you work directly with UAE government bodies and local private companies. Post-2021, you no longer need a local sponsor for most activities. That removed a real barrier for international founders.
Meydan Free Zone suits agencies focused on international hiring, remote placements, and cross-border talent sourcing. The flexi-desk option keeps your fixed costs low while you build your client base. A Dubai Trade License from AED 12,500 is available for eligible free zone setups, which makes the entry cost workable for a new agency.
One point that catches people out: MOHRE private recruitment agency approval is mandatory for both jurisdictions if you are placing domestic workers or blue-collar staff. The free zone license alone does not authorise you to operate as a recruitment agency in that segment. You need both documents before you start trading.
If your model is purely white-collar or executive search, and you are placing candidates into employment contracts held by the client, the MOHRE requirement is lighter. But confirm this with the authority directly before you assume it applies to your setup.
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Calculate NowStep-by-Step Setup Guide
- Step 1, book your trade name: Use the DET e-Services portal for a mainland company, or the Meydan Free Zone portal for a free zone one. The name must not include words that imply government affiliation or professional credentials you do not hold. Use the company name availability checker before you commit to anything.
- Step 2, choose your activity code: Confirm the code covers recruitment and placement specifically. If you plan to add manpower supply or PRO services, add those codes at this stage. Changing them later adds time and cost.
- Step 3, submit your initial application: For Meydan Free Zone, this goes through the free zone portal. For mainland, it goes through DET. You will need passport copies, a business plan in some cases, and confirmation of your proposed office or flexi-desk arrangement.
- Step 4, get MOHRE approval: This is required before you can advertise vacancies or place workers. MOHRE will ask for a bank guarantee deposit. The amount depends on your license scope. Do not skip this step or treat it as something to handle after launch. It must be in place before you start.
- Step 5, sign your office lease or flexi-desk agreement: For mainland, you need an Ejari-registered lease. For Meydan Free Zone, the free zone issues its own tenancy certificate. Both are needed to complete your license application.
- Step 6, collect your trade license: Once all documents are approved and fees are paid, the license is issued. Keep a digital and physical copy. Clients and banks will ask for it.
- Step 7, open a corporate bank account: Banks in the UAE ask for your trade license, MOHRE approval, office lease, and shareholder documents. Business banking support for free zone companies is available through mCore if you need help navigating this step.
- Step 8, register with MOHRE's Tasheel system: Tasheel is the platform you use to process work permits and employment contracts. You cannot file labour applications without being registered on it.
- Step 9, hire a licensed recruitment consultant if needed: If your scope includes domestic worker placement, MOHRE requires at least one licensed recruitment consultant on your staff. Confirm the staffing requirement for your specific activity before you start hiring.
Compliance, Bank Guarantees, and Ongoing Duties
Getting the license is step one. Staying compliant is the ongoing job. The areas below are where agencies run into problems.
Bank guarantee MOHRE needs a bank guarantee before it approves your private recruitment agency permit. The guarantee amount varies by license type and scope. It can be forfeited if you breach MOHRE regulations, including placing workers without contracts, charging candidates placement fees, or abandoning workers mid-placement. Treat this as a real liability, not a formality.
Advertising rules The UAE Media Council oversees ad content shown in the UAE. Misleading job ads carry fines. Ads must not promise salaries or conditions that are not confirmed in writing. If you are running social media campaigns targeting candidates, those posts fall under the same rules. Keep your ad copy accurate and specific.
Worker protection Employment contracts for placed workers must be in both Arabic and English. You cannot charge candidates a placement fee at any point. The cost of placement is borne entirely by the client. This is not negotiable and MOHRE enforces it. Agencies that try to recover costs from workers face permit suspension.
Renewal cycles Your trade license and your MOHRE permit run on separate renewal cycles. Missing either one stops your operations. Set calendar reminders at least 60 days before each renewal date. The MOHRE permit in particular requires updated documentation, so leave enough time to gather what you need.
Emiratisation duties If you hire UAE nationals yourself, you fall under Emiratisation quota rules. The Nafis programme sets targets for private sector employers. As a recruitment agency, you are also likely to be asked by clients to help them meet their own quotas. Understanding how the system works is a commercial advantage, not just a compliance duty. Check the MOHRE website for current Emiratisation thresholds and obligations.
VAT and corporate tax If your annual revenue passes the VAT registration threshold, you need to register with the Federal Tax Authority. Corporate tax at 9% applies to taxable income above AED 375,000. Both are managed separately. VAT registration support services and corporate tax services in Dubai are available through mAccounting if you need help staying on top of both.
Market Opportunity and Who Your Clients Will Be
Dubai's recruitment market is not saturated at the specialist end. There are plenty of generalist agencies. There are far fewer that understand a specific sector deeply enough to place senior or technical roles with confidence.
Emiratisation demand The Nafis programme creates structured demand for compliant recruiters who understand quota rules. Companies with 50 or more employees face mandatory Emiratisation targets. Many of them do not have the internal capability to find and onboard UAE nationals at the rate the targets require. A recruitment agency that can deliver on this is worth paying for.
High-volume sectors Construction, hospitality, and healthcare generate the highest placement volumes. Margins per placement are lower, but deal flow is consistent. If you are building a volume model, these sectors give you the throughput to cover fixed costs early.
High-fee sectors Tech and finance roles command significantly higher fees per placement. A boutique agency placing 20 senior tech hires a year can generate more revenue than a generalist agency placing 200 mid-level roles. These clients are also more likely to use retained search models, which improve your cash flow predictability.
Enterprise clients Most large businesses in Dubai run formal vendor registration before they engage any agency. They want your trade license, MOHRE approval, insurance certificates, and references. Build that vendor pack early. Do not wait until a client asks for it. The agencies that win enterprise contracts are the ones that already have everything ready when the procurement team calls.
If you are planning to manage your business remotely before relocating, Meydan Free Zone supports remote business setup in Dubai, which lets you get the company structure in place before you arrive.
Conclusion
A recruitment business in Dubai is workable from day one if you get the MOHRE approval and bank guarantee in place before you start trading. The license alone is not enough. Many founders make the mistake of launching on the trade license and treating the MOHRE permit as a follow-up task. That approach leaves you exposed to fines and puts your bank guarantee at risk.
Get the structure right at the start. Choose your jurisdiction based on where your clients are, not on setup cost. Confirm your activity codes before you apply. And make sure your MOHRE permit is issued and your Tasheel registration is active before you place a single candidate.
Speak to Meydan Free Zone to confirm the right activity code and jurisdiction for your specific recruitment model before you commit to a setup structure.
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