Setting Up a Recruitment Agency in the UAE: Licensing Requirements

Recruitment and employment agencies in the UAE operate under specific licensing requirements from the Ministry of Human Resources and Emiratisation (MOHRE), reflecting the sensitivity of the sector given its role in facilitating employment and, in some cases, cross-border labour placement.

A standard recruitment agency license, sometimes called a manpower or employment services license, permits the business to help match job seekers with employers and provide advisory services around hiring, but there's an important distinction between this kind of placement-focused agency and a manpower supply company that directly employs and sponsors workers before deploying them to client businesses, since the latter carries additional labour law obligations toward the deployed workers.

MOHRE licensing for recruitment agencies typically requires a bank guarantee, the exact amount depending on the specific license category, intended to protect job seekers and cover potential compensation if the agency fails to meet its obligations, along with proof of adequate office premises and, for agencies recruiting domestic workers specifically, compliance with a separate and more stringent regulatory track given historical concerns in that segment.

Agencies are prohibited from charging job seekers placement fees under UAE labour law, meaning recruitment agency revenue generally needs to come from employer-side fees rather than fees charged to the candidates being placed, and violating this rule is treated as a serious offense. Given the bank guarantee requirement, the strict rules around fee charging, and the additional obligations for domestic worker recruitment specifically, business owners considering this sector should confirm current MOHRE requirements for their intended specific category before proceeding, since the rules differ meaningfully between standard placement agencies and domestic worker recruitment specifically.