How to Start a Manpower Supply Company in the UAE 2025

The UAE is one of the fastest-growing economies in the Middle East, attracting thousands of businesses and workers every year.

From construction projects in Dubai and Abu Dhabi to hospitality, logistics, oil & gas, and healthcare, companies across the country require a steady supply of skilled, semi-skilled, and unskilled workers.

This massive demand makes the manpower supply business in UAE a highly profitable venture for entrepreneurs.

However, starting a manpower supply company in the UAE requires proper licensing, legal compliance, and strategic planning.

Understanding the Manpower Supply Industry in the UAE

What is a manpower supply company?

A manpower supply company connects employers with workers by providing temporary or permanent staffing solutions. These workers may be deployed in industries such as construction, oil & gas, hospitality, retail, logistics, security, and healthcare.

Entities Involved

• Employers – Businesses needing workers
• Manpower Agencies – Companies providing staff
• MOHRE – Ministry of Human Resources & Emiratisation (regulates mainland manpower businesses)
• Free Zone Authorities – Handle licensing in free zones
• Workers – Skilled, semi-skilled, and unskilled staff

Attributes of the Manpower Industry in UAE

• Categories of workforce: Engineers, technicians, construction workers, cleaners, drivers, nurses, hospitality staff
• Licensing: Manpower supply license or recruitment license
• Compliance: Labour law, visa quota approvals, accommodation standards

Why start a manpower company in the UAE?

• High demand due to mega projects (Expo 2020 legacy, Vision 2030, smart cities)
• Diverse industries hiring workers
• Tax-free environment with business-friendly regulations
• Global hub for skilled professionals and blue-collar workers

Legal Requirements to Start a Manpower Supply Company

Starting a manpower supply company in the UAE is highly regulated to prevent exploitation and ensure the rights of workers.

1. Business Structure Options

• Mainland Company Setup – Requires approval from MOHRE, allowing working with both government and private sectors.
• Free Zone Setup – Offers 100% ownership, easier setup, but is limited to specific zones unless partnered with a mainland company.
• Offshore Setup – Not suitable for manpower supply, as operations must be based in the UAE jurisdiction.

2. Licensing Authority

• MOHRE (Mainland) – Manpower supply & recruitment licenses
• Free Zone Authority – Business license within free zones like JAFZA, DMCC, SHAMS, etc.

3. Types of Licenses

• Manpower Supply License – To legally supply workers to businesses.
• Recruitment License – To recruit and hire workers locally or internationally.

4. Sponsorship Requirements

• Mainland companies usually require a local Emirati sponsor/partner (unless 100% foreign ownership is granted under new laws).
• Free zones allow full ownership without local sponsors.

5. Capital & Office Requirements

• A minimum capital investment may be required (varies by jurisdiction).
• Dedicated office space is essential for operating a manpower supply business.

Step-by-Step Process to Start a Manpower Supply Company in the UAE

Step 1: Conduct Market Research & Draft a Business Plan

• Identify target industries (construction, hospitality, healthcare, logistics).
• Assess competition and pricing strategies.
• Define your business model (skilled workers, semi-skilled, unskilled).

Step 2: Choose the Right Jurisdiction

• Mainland setup: Ideal if you want to supply staff across the UAE.
• Free zone setup: Best for 100% ownership and lower setup costs, but limited to free zone operations.

Step 3: Register Your Company & Obtain a License

• Reserve a trade name
• Apply for initial approval from MOHRE or the free zone authority
• Submit required documents (passport copies, NOC, business plan)
• Obtain a manpower supply license

Step 4: Set up Office & Corporate Bank Account

• Rent an office space (required for licensing).
• Open a corporate bank account in the UAE.

Step 5: Get Labour Approvals & Worker Quotas

• Apply for employer quota approvals with MOHRE.
• Register your company in the Wage Protection System (WPS).
• Apply for work permits and visas for employees.

Step 6: Recruitment & Workforce Deployment

• Partner with local and international recruitment agencies.
• Provide training, safety certifications, and skill verification.
• Deploy workers to client companies with proper contracts.

Cost of Starting a Manpower Supply Company in the UAE

The cost depends on whether you choose a mainland or free zone setup.

Key Cost Factors:

• Trade license fees: AED 10,000 – AED 25,000 (varies by jurisdiction)
• Office rent: AED 15,000 – AED 50,000 annually (depending on location)
• Visa costs: AED 4,000 – AED 7,000 per employee (including medical & Emirates ID)
• Bank guarantee/security deposit: AED 50,000 – AED 300,000 (depends on license type)
• Annual renewal fees: Approx. AED 10,000 – AED 20,000

Estimated Total Setup Cost: AED 150,000 – AED 400,000 (≈ USD 40,000 – USD 110,000)

Challenges & Compliance Issues

Starting a manpower company in the UAE is rewarding, but it comes with challenges:

• Strict labour law compliance monitored by MOHRE
• Worker welfare & accommodation standards to be met
• High competition in the manpower supply market
• Penalties for illegal recruitment or visa misuse

Tips for Running a Successful Manpower Supply Business in the UAE

• Build strong client relationships with reliable service delivery
• Focus on ethical recruitment practices (no illegal worker fees)
• Stay updated with UAE labour law & MOHRE regulations
• Offer specialized manpower (certified engineers, technicians, healthcare workers)
• Invest in digital solutions – job portals, AI-based recruitment tools, worker management apps

Conclusion

The UAE is a land of opportunities, and the manpower supply industry continues to thrive due to the country’s constant demand for skilled and unskilled workers.

Setting up a manpower supply company requires careful planning, proper licensing, compliance with labour laws, and strong industry connections.

With the right approach, you can establish a profitable manpower supply company in Dubai, Abu Dhabi, or any UAE emirate and serve the growing business landscape.

FAQs – Starting a Manpower Supply Company in the UAE

1. How much does it cost to start a manpower supply company in the UAE?
   The cost ranges between AED 150,000 and AED 400,000, depending on jurisdiction, office space, and licensing.
2. What license do I need for manpower supply in Dubai?
   You need a Manpower Supply License from MOHRE (for mainland) or a Free Zone Authority license.
3. Can a foreigner own a manpower supply company in the UAE?
   Yes, foreigners can own manpower companies in free zones (100% ownership). For mainland setups, local sponsorship may be required depending on activity.
4. What is the difference between a manpower supply license and a recruitment license?

• Manpower Supply License: Allows you to supply and manage workers under your sponsorship.
• Recruitment License: Allows you to hire and recruit workers for other companies.

5. Is a local sponsor required for a manpower supply company in UAE?
   For mainland businesses, yes (unless new 100% foreign ownership rules apply). Free zones do not require local sponsors.
6. How long does it take to set up a manpower company in Dubai?
   The process usually takes 2–4 weeks once all documents are submitted.
7. Can manpower companies provide services to both mainland and free zone businesses?
   Yes, if licensed under mainland. Free zone companies can operate within their zones but need approvals to serve mainland clients.