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What is the visa quota in the UAE

What is the visa quota in the UAE - Makebiz

The United Arab Emirates is one of the most attractive countries for doing business due to its strategic location, stable economy and favorable tax regime. However, for successful work here, it is important to properly apply for a visa quota, which allows enterprises to attract foreign employees. It is necessary to monitor the labor market and ensure compliance with standards related to working conditions. Let’s take a closer look at the concept of a quota, why it is needed and how to get it.

What were the quotas introduced for:

1. Labor market control: Quotas help the government regulate the number of foreign workers in the country, which in turn helps create a favorable economic environment and protect the rights of local citizens.

2. Operational reality: ensuring that each employee has enough physical workspace. This is crucial for maintaining a comfortable and productive working environment.

3. Compliance and diversity: Quotas serve as a checkpoint for compliance with laws and regulations related to labor migration and employment.

The definition of the visa limit depends on the location of your company:

— Mainland: control regulators are the Ministry of Human Resources and Emiratisation and the General Directorate for Residence and Foreigners. In this case, the main factor is the size of the office and the level of business activity. Mainland companies often have more opportunities to scale their workforce, especially when it comes to retail, services, and other sectors.

— Free zones. If your company is registered in one of the free zones, the limit will be determined by the specific governing body of this zone. Each FEZ has its own unique rules and requirements, therefore, consultation with a specialist is necessary for each individual case. 

For the smooth operation of your business, determine in advance how many employees you need to work effectively, and consider possible changes in the future. Familiarize yourself with the rules and requirements applicable in your jurisdiction. It is also worth periodically monitoring changes in labor legislation.

Several factors affect the issuance and number of visa slots:

1. The size of office space

In the UAE, there is a rule according to which one visa can be issued for every 9 square meters of office space. This means that for small companies operating under flexible leases, such as Flexi-Desk, the quota can be limited to a maximum of 2-3 visas, regardless of the company’s income. To get more visas, startups need to switch to renting a physical office.

2. Type of business license 

Different types of activities may have different limits on the number of visas, even if the office space is the same. For example, a consulting company may have different requirements and limitations in their number compared to a trading or manufacturing business. This is because each license is governed by different rules and standards set by local authorities.

3. Emiratisation

Emiratisation is a process aimed at increasing the number of local citizens in the private sector. Businesses with more than 50 employees are at risk of having their visa limit frozen if they fail to reach the annual emiratisation target of 2%. This means that in order to maintain and increase the limit, it is necessary to actively involve local specialists and comply with the employment requirements of local residents.

4. Demographic diversity of the workforce

For firms located on the mainland, the Ministry of Human Resources and Emiratisation monitors the «demographic diversity» of the workforce. If an organization hires too many employees of the same nationality, this may lead to difficulties in extending the visa limit or increasing fees. Therefore, it is recommended to create a multinational team to avoid such problems.

5. Total allowed quota

For example, if your limit is 10 and you already have 8 sponsored staff, you will only be able to apply for 2 additional visas unless the total quota is increased. This highlights the importance of strategic planning in personnel management.

6. Legal structure 

Some organizational and legal forms provide more flexibility in personnel management than others. For example, limited liability companies (LLCs) may have more opportunities in terms of the number of visas than individual entrepreneurs. This is due to differences in approval requirements and the scale of the business.

To receive quotas, you must go through the following steps:

1. Registration of a trade license

This is a key document that confirms the legality of your activities in the country. There are several types of licenses, depending on the type of business: commercial, industrial, professional, etc.

2. Choosing an office space

Various options are available in the Emirates:

  • Flexible desk/shared or virtual office — suitable for startups and small firms, but the number of visas is strictly limited.
  • Serviced or private office — provides its own space and necessary amenities.
  • Warehouse/industrial unit/retail space — for companies engaged in trade or production.

It is worth noting separately that for organizations opened on the mainland, it is important that the office is registered in the Ejari system, which confirms its legality.

3. Obtaining an immigration card and opening an employment file

An immigration card is required to obtain work visas, as it confirms that your company has the right to hire foreign workers. The labor file is also opened at the Ministry of Labor if it is necessary to hire workers.

4. Getting quotas

Slots are allocated automatically and depend on the size of your office, its location and business activity. The bigger the office, the more quotas you will receive. It is important to understand that each approved visa will use one slot from your available limit. 

5. Submitting an application for residency to employees

Each application must be submitted in accordance with the established rules and procedures. If your slots are exhausted, you need to contact the appropriate authority to increase the quotas.

If you can’t increase the limit anymore, consider using a Registered employer (EOR) or an outsourcing model. In this case, the employee will be legally sponsored by a third party, which allows you to avoid problems with a shortage of visa slots.

The visa quota in the UAE is a significant aspect that affects the ability of your business to hire foreign workers. Understanding how it works and what factors influence it will help you successfully manage your company and adapt to market demands. Given the unique conditions of each free zone and mainland, it is important to carefully plan and monitor changes in legislation to ensure the successful development of your business in Dubai.

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