Expanding into the United Arab Emirates can be a major strategic advantage, access to world-class infrastructure, tax-free zones, and a highly skilled, multilingual workforce.
But if you’re not planning to open a legal entity in the country just yet, working with an Employer of Record (EOR) is often the most efficient way to compliantly onboard talent in the UAE.
Having worked with several companies navigating the UAE’s employment ecosystem, I’ve seen firsthand how a good EOR can save months of legal complexity, and how the wrong one can cause major compliance issues. Here’s what to look for before choosing an EOR for your UAE expansion.
1. Deep Compliance With UAE Labour Laws
The UAE’s labor regulations are governed primarily by Federal Decree Law No. 33 of 2021 and Ministerial Resolution No. 46 of 2022. These laws cover everything from employment contracts to end-of-service benefits and are strictly enforced.
What many don’t realize is that compliance differs across mainland and free zones. For instance, Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) operate under independent employment laws modeled after common law.
2. Market Experience Is Non-Negotiable
The UAE isn’t just one market, it’s a patchwork of over 40 free zones, each with its own regulations. An EOR that has only worked in Dubai mainland, for instance, may struggle with nuances in RAKEZ (Ras Al Khaimah Economic Zone) or JAFZA (Jebel Ali Free Zone).
Ask for case studies or client references in multiple zones.
Pro insight: I always request an org chart from the EOR showing where their local HR and legal teams are based, it’s a quick way to verify if they really operate on the ground.
3. Visa Sponsorship and Immigration Handling
All foreign workers in the UAE need a valid work visa, and the EOR becomes the legal sponsor. This includes managing:
- Medical fitness tests
- Emirates ID registration
- Labor card issuance (where applicable)
Also, under Emiratisation mandates, companies above certain thresholds must hire a percentage of Emirati nationals. Some EORs help you manage those quotas through local partnerships.
4. End-of-Service Gratuity Done Right
This is one area where errors can cost you. Under Article 51 of the UAE Labour Law, employees who complete one year of service are entitled to 21 days’ basic salary per year, increasing to 30 days after 5 years.
The EOR must calculate this accurately and disburse it at termination, else you could face legal claims.
From experience: I’ve seen cases where EORs used gross salary instead of basic to calculate gratuity, a small oversight that turned into a large dispute during an offboarding.
5. Transparent and Predictable Pricing
The UAE has government fees for everything, visa stamping, medical checks, labor cards, Emirates ID renewals. Some EORs include these in a flat rate, while others charge à la carte.
Make sure to ask:
- Are visa renewal fees included?
- Are WPS salary file submissions extra?
- Do they charge for offer letters or contract redrafting?
A reliable EOR will break down every fee up front.
6. Cultural and Workplace Etiquette
The UAE is a multicultural hub, but local customs still carry weight. You’ll want an EOR that’s sensitive to:
- Shorter working hours during Ramadan
- Public holidays shifting based on the Hijri calendar
- Norms around Friday-Saturday weekends (though some companies follow a Mon–Fri week)
Human tip: One of our new hires started during Ramadan, and because our EOR didn’t communicate adjusted hours, the employee felt confused and alienated. A simple onboarding tweak could’ve fixed it.
7. Payroll in AED and WPS Compliance
Salaries in the UAE are typically paid in dirhams (AED), which is pegged to USD at 3.67, helpful for financial planning.
But equally important is WPS (Wages Protection System) compliance. If your EOR isn’t submitting payroll files through UAE-licensed banks, your company could face penalties, even as a non-resident employer.
Ensure they’re integrated with local WPS-compliant banks and issue payslips monthly.
8. Benefits That Match UAE Expectations
Beyond salary, competitive benefits may include:
- Housing or transport allowances
- Private health insurance (mandatory in Dubai and Abu Dhabi)
- Annual air tickets home
- Schooling or education support
A top-tier EOR will help structure these into the offer letter to make it tax-efficient and regionally competitive.
9. Strong Ties to UAE Government Bodies
The Ministry of Human Resources and Emiratisation (MOHRE), the Federal Authority for Identity and Citizenship (ICP), and various free zone authorities are all involved in employment processes.
A good EOR should have:
- Access to PROs (Public Relations Officers) for document clearance
- Fast-track options for visa processing
- Real-time updates on labor law changes
Ask how they stay informed, some even get early briefings from zone authorities.
10. Track Record in the UAE
Finally, always vet the EOR’s history in the UAE market. This includes:
- Local business licenses
- DIFC/ADGM registration (if applicable)
- Case studies or testimonials from other UAE-based clients
In one case, we shortlisted two EORs. One had an attractive platform but no clients in the UAE, we went with the one who’d handled 100+ hires across Dubai, Abu Dhabi, and Sharjah, and never regretted it.
Final Thoughts
Choosing an EOR in the UAE isn’t just a legal decision, it’s a people decision. A strong provider does more than tick compliance boxes; they act as a cultural and strategic bridge between your business and a new market.
Having partnered with UAE-based EORs for more than 5 years, my advice is simple: prioritize local experience, cultural fit, and transparency over shiny tech or low cost.
If you do that, expanding into the UAE can be one of the smoothest moves you’ll make.
