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A guide to employer of record in the UAE

What is an employer of record?

An Employer of Record is a third-party company that takes on the legal responsibility of employing workers on behalf of another business. You handle the employee’s daily work and performance, while the EOR manages all administrative and legal responsibilities—payroll, taxes, benefits, contracts, and compliance with local labor laws.  

EOR services enable companies to hire talent in countries where they don’t have a registered entity. It’s a fast and compliant way to expand into new markets, test remote teams, or onboard international specialists without the time and expense of setting up a local branch.

Expanding into the UAE offers exciting opportunities for global companies, but handling local employment laws, visa procedures, and compliance can get complicated fast. That’s where an Employer of Record (EOR) comes in.
In this guide, we’ll walk you through EOR services in the UAE, when to use them, and what to consider when choosing a provider—so you can hire talent in the region without the need to set up a local entity.

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Why companies choose EOR services in the UAE

Dubai has become a strategic hub for global business expansion, and EOR services make it easier than ever to tap into this dynamic market. Companies choose an employer of record in the UAE for several key reasons:

  • Business-friendly regulations – The UAE offers a stable legal framework and streamlined processes for foreign businesses, making it easier to operate and grow.
  • 0% personal income tax – Attracting top-tier talent is simpler when employees can benefit from tax-free salaries.
  • Access to skilled MENA talent – Dubai’s location and reputation draw professionals from across the Middle East and North Africa, giving companies access to a diverse and highly educated talent pool.
  • Speed to market – With an EOR in the UAE, companies can hire and onboard talent without waiting months to establish a local entity.
  • Compliance without complexity – UAE labor laws differ from Western standards, and an EOR ensures full compliance while reducing the legal and administrative burden on your internal team.

For companies looking to scale operations or test the market in the Gulf region, EOR services in Dubai offer a cost-effective, low-risk solution.

Key advantages of hiring in the UAE

A guide to employer of record in the UAE

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A guide to employer of record in the UAE

Expanding into the UAE offers exciting opportunities for global companies, but handling local employment laws, visa procedures, and compliance can get complicated fast. That’s where an Employer of Record (EOR) comes in.
In this guide, we’ll walk you through EOR services in the UAE, when to use them, and what to consider when choosing a provider—so you can hire talent in the region without the need to set up a local entity.

What is an employer of record?

An Employer of Record is a third-party company that takes on the legal responsibility of employing workers on behalf of another business. You handle the employee’s daily work and performance, while the EOR manages all administrative and legal responsibilities—payroll, taxes, benefits, contracts, and compliance with local labor laws.  

EOR services enable companies to hire talent in countries where they don’t have a registered entity. It’s a fast and compliant way to expand into new markets, test remote teams, or onboard international specialists without the time and expense of setting up a local branch.

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Why companies choose EOR services in the UAE

Dubai has become a strategic hub for global business expansion, and EOR services make it easier than ever to tap into this dynamic market. Companies choose an employer of record in the UAE for several key reasons:

  • Business-friendly regulations – The UAE offers a stable legal framework and streamlined processes for foreign businesses, making it easier to operate and grow.
  • 0% personal income tax – Attracting top-tier talent is simpler when employees can benefit from tax-free salaries.
  • Access to skilled MENA talent – Dubai’s location and reputation draw professionals from across the Middle East and North Africa, giving companies access to a diverse and highly educated talent pool.
  • Speed to market – With an EOR in the UAE, companies can hire and onboard talent without waiting months to establish a local entity.
  • Compliance without complexity – UAE labor laws differ from Western standards, and an EOR ensures full compliance while reducing the legal and administrative burden on your internal team.

For companies looking to scale operations or test the market in the Gulf region, EOR services in Dubai offer a cost-effective, low-risk solution.

Key advantages of hiring in the UAE

What do EOR services in the UAE include

In the UAE, EOR acts as the legal employer of your team members, while you remain in charge of their daily tasks and performance. Here’s how it works on the ground:

Visa and work permit sponsorship

The EOR acts as the official sponsor, handling the entire visa process, including medical checks, Emirates ID, and labor card issuance, ensuring employees are legally eligible to work in the UAE.

Employment contracts

Contracts are issued under the EOR’s local entity, compliant with UAE labor law and aligned with your company’s terms on salary, probation, leave, and notice periods.

Payroll and benefits administration

The EOR manages monthly salary payments, statutory benefits, and end-of-service gratuity in line with UAE regulations. They also handle expenses, bonuses, and any agreed allowances.

Compliance and HR support

The EOR ensures all labor law updates, tax rules (such as VAT where applicable), and employment norms are followed. They also support dispute resolution, terminations, and offboarding processes.

Localized onboarding

From health insurance to bank account setup, an employer of record in the UAE streamlines the onboarding experience so your hires can start working faster and with peace of mind.

With this model, your business avoids the cost and complexity of setting up a local company, while staying compliant and operational in one of the region’s most competitive markets.

When to consider using an EOR in the UAE

Using an employer of record in the UAE makes sense in several strategic scenarios. Here are the most common use cases:

Entering the UAE market without setting up a legal entity

If you want to establish a presence in Dubai quickly and without the administrative burden of registering a company, an EOR enables you to hire local or foreign talent while staying fully compliant.

Testing new markets before committing long term

An EOR is ideal for piloting operations in the UAE. It lets you evaluate the market potential and talent fit before making larger investments.

Hiring remote talent already based in Dubai

If you've identified skilled professionals residing in the UAE but don’t have a local office, an EOR can onboard them legally and manage all employment logistics.

Supporting a distributed or hybrid workforce

Companies operating globally can use an EOR in Dubai to build regional teams or support specific clients in the Middle East, without needing permanent infrastructure.

Handling short-term or project-based hiring

For limited-time initiatives that require local execution, an EOR in the UAE offers a flexible, low-risk solution to bring talent on board quickly.

In all these cases, an EOR allows you to stay agile, reduce overhead, and maintain full focus on your core operations.

Setting up your own entity vs. EOR in Dubai

Deciding between establishing your own legal entity or collaboration with an EOR in Dubai comes down to your business priorities, available resources, and long-term strategy. Here’s a quick comparison to help you decide:

EOR vs Own Entity in Dubai
Aspect Employer of Record (EOR) Own Entity in Dubai
Setup time A few days to onboard talent Several weeks to months for full company registration
Initial costs Low — No need for office space, local sponsorship, or licensing High — Includes legal fees, trade license, office rent
Compliance Fully handled by the EOR Requires ongoing in-house legal and HR management
Flexibility Ideal for short-term hiring, pilots, or scaling fast Better for long-term commitment and full control
Administrative load Minimal — EOR manages payroll, visas, contracts, etc. High — Handled internally or outsourced separately
Brand presence Limited — Your company operates under the EOR’s entity. Full — Your company is legally recognized in Dubai.

If speed, cost-efficiency, and reduced risk are your priorities, using employer of record services in UAE is a smart choice. If you’re aiming for a long-term presence and large-scale operations in the UAE, establishing your own entity might be the more suitable option.

How ALLSTARSIT supports global hiring in Dubai

At ALLSTARSIT, we help companies scale their teams in Dubai and across the UAE through flexible hiring solutions, whether you’re testing the market or building a long-term presence.

Through our EOR service we act as the legal employer for your talent in Dubai, handling everything from visa sponsorship and payroll to employment contracts and compliance.  

With our Staff Augmentation model, we connect you with vetted tech professionals who can integrate seamlessly into your existing teams. You retain control over their day-to-day work while we handle the legal and operational side.

Whether you’re hiring a single specialist or building a full team, ALLSTARSIT helps you grow in the UAE with confidence. We’re also strategically present in Dubai Internet City—the region’s leading tech hub—allowing us to stay close to top talent and innovation in the Middle East.

Ready to hire tech talent in Dubai without the hassle? Fill out the form and our team will get in touch to discuss the best solution for your needs.

A guide to employer of record in the UAE

Expanding into the UAE offers exciting opportunities for global companies, but handling local employment laws, visa procedures, and compliance can get complicated fast. That’s where an Employer of Record (EOR) comes in.
In this guide, we’ll walk you through EOR services in the UAE, when to use them, and what to consider when choosing a provider—so you can hire talent in the region without the need to set up a local entity.