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How to Start a Recruitment Agency in Dubai?

Start Recruitment Agency in Dubai
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There is no denying that Dubai requires a never-ending supply of workers to keep its economy going. The scope and scale of workers required make it an appealing market to set up a recruitment agency.

Human Resources professionals from across the globe have made Dubai their home by setting up recruitment firms catering to a variety of niches.

Understand the Market for Recruitment Business Market

Dubai recruitment agencies can be broken down into five categories. Knowing where you are going to position your new agency is essential for its long-term success.

1. Traditional Recruitment Firms

First, there are traditional recruitment companies that focus on general skilled personnel; these firms tend to work with businesses of every size. Whether you need an admin assistant or a salesperson, these agencies tend to have a large database of candidates that they can utilize to find the right person for any business.

2. Executive Search Agencies

Second, there are Executive Search Agencies, this is for the very top-end of the market, for roles where the salary and competition are high. This kind of agency will undertake head-hunting and other, more time-consuming, yet effective activities.

3. Specialist HR Agencies

Next, there are niche or specialist agencies; these agencies hire candidates who are skilled in highly-specialized areas and fields. They will tend to focus on specific areas of finance, technology, science, banking, oil, gas, and the legal sector. For example, a company may need a person specializing in cybersecurity in power plants, hence an agency that can target people with a very particular skill set.

4. Large-Scale Labour Recruiters

Fourth, we have large-scale labour recruiters; these tend to bring in huge volumes of people from across Asia for construction projects or domestic help roles. These agencies usually tend to have a presence overseas and channel workers through their UAE agency to businesses and employers that need them.

5. Temporary Recruitment Companies

Finally, there are temporary recruitment companies; these also recruit labour however they make such labour available to a third party. The recruitment company leases out the labour of workers under its control to business for a specific fee and time. The labour goes from site to site for specific tasks.

Getting a License for Recruitment Company

As per current laws, only UAE nationals can apply for a recruitment company license in Dubai. This essentially means that you will need to establish a contract with a UAE national if you want to set up an agency.

Our consultants can help facilitate in not only finding you a UAE national that can facilitate this but helping you structure a contract where your rights are safeguarded. Alternatively, expats are allowed to set up recruitment companies in most free zone jurisdictions within the UAE. Our consultants can guide you in setting up an agency in the best jurisdiction based on our experience.

Financial Costs of Setting Up a Recruitment Agency

For a mainland license, investors are required to have a bank guarantee of 300000 AED, this is an addition to the cost of a license which is around 50000 AED. Please bear in mind that there are also costs associated with getting a mandatory physical office from where the agency will be based from.

In case an investor wants a temporary recruitment agency license, the fee for the license is approximately 100000 AED and the bank guarantee increases to 1000000 AED.

Why a Consultant is Important?

Setting up a company for recruitment comes with a variety of risks many first-time investors are not aware of. The process can be quite bureaucratic and cumbersome for someone that may not have had interactions with regulatory bodies. Our consultants have helped set up dozens of recruitment agencies and can advise you the best way of doing it with minimal risk, and the most cost-effective manner.

click the button below if you want to start a recruitment company in Dubai.

Gilbert Sakr

Do you need help in business setup or looking to start a business in Dubai? Here you will find all the information and business ideas you need for starting your own company in Dubai.

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