Manpower Supply in the UAE: What Every Business Needs to Know
Manpower supply is one of the most active and most regulated sectors in the UAE. Businesses running construction projects, hospitality operations, logistics networks, or industrial sites often rely on manpower supply companies to scale their workforce quickly. Before signing a contract or setting one up, it helps to understand exactly what manpower supply is, how it is regulated, what licenses and costs are involved, and what to check before partnering with a supplier.
As a licensed manpower supply company operating in the UAE, we work with businesses across construction, hospitality, logistics, and industrial sectors every day, and we put together this guide based on that firsthand experience with MOHRE licensing, WPS compliance, and workforce mobilization.
Quick summary: what every business needs to know
Manpower supply means the supplier sponsors and employs the workers directly, unlike a brokerage agency that only refers candidates.
MOHRE regulates the sector under Federal Decree Law No. 33 of 2021, and a Temporary Employment license is required to sponsor and deploy workers.
A bank guarantee, commonly around AED 1,000,000 for full manpower supply, must be maintained for the life of the license.
Every deployed worker must hold an active labour card, and salaries must run through the Wage Protection System.
Before hiring a supplier, verify their license type, WPS enrollment, and worker documentation directly.
What Is Manpower Supply?
Manpower supply is a staffing model where a licensed company recruits and employs workers directly on its own payroll, then deploys those workers to client businesses under a service contract. The workers remain employees of the manpower supply company, which handles their salaries, visas, benefits, and labour law compliance. The client business pays a service fee for access to the workforce.
This is different from a recruitment or brokerage agency. A brokerage agency connects job seekers with employers but does not sponsor workers or act as their employer of record. A manpower supply company does both.
Common industries that use manpower supply in the UAE include:
Construction and infrastructure
Oil, gas, and energy projects
Hospitality and facilities management
Logistics and warehousing
Healthcare support staff
Events and short term project mobilization
How Is Manpower Supply Regulated in the UAE?
The Ministry of Human Resources and Emiratisation, known as MOHRE, is the primary regulator for manpower supply and recruitment activity in the UAE. Two key legal references govern the sector:
Federal Decree Law No. 33 of 2021, which regulates labour relations and requires any company engaged in employment or mediation activity to hold a Ministry license.
Ministerial Resolution No. 1283 of 2010, which sets rules for private employment and recruitment agencies.
Because manpower supply involves visa sponsorship, wage payments, and worker welfare, MOHRE applies stricter oversight to this category than to a standard trade license.
What License Do You Need for Manpower Supply in the UAE?
There are three license categories recognized in the UAE:
Mediation or Brokerage License Allows an agency to connect job seekers and employers and build candidate databases, without sponsoring the workers. This suits white collar recruitment and executive search, and it carries lower capital requirements.
Temporary Employment License, also called a Manpower Supply License Allows a company to recruit and sponsor workers under its own quota and deploy them to client businesses. This is the core license for large scale labour supply in construction, industrial, and facilities sectors, and it comes with significantly higher financial and compliance requirements.
Combined License Covers both mediation and temporary employment activity under one approval.
Mainland setup, such as Dubai Mainland or Abu Dhabi Mainland, is generally required for full manpower supply operations. Most free zones only permit HR consultancy, advisory, payroll, or training activities and do not issue labour supply licenses.
Capital and Bank Guarantee Requirements
Manpower supply is capital intensive because MOHRE requires financial guarantees to protect workers if a company cannot meet its obligations. Commonly cited 2026 benchmarks are:
License Type | Typical Bank Guarantee |
Mediation or Brokerage License | AED 300,000 |
Temporary Employment or Combined License | AED 1,000,000 |
Some sources also reference a minimum share capital requirement, often around AED 300,000, that must be deposited before license issuance. These amounts must be maintained for the life of the license. A lapse can lead to suspension, and proof of the guarantee is typically required at annual renewal.
Guarantee and capital figures can vary by emirate and change over time, so confirm current requirements with MOHRE or a licensed advisor before budgeting.
Steps to Set Up a Manpower Supply Company in the UAE
Decide on business positioning: mediation only, full labour supply, or a combined model.
Choose your jurisdiction. Mainland setup through MOHRE and DED is required for full labour supply activity.
Reserve a trade name that follows UAE naming rules and matches your licensed activity.
Secure a compliant physical office. Some sectors also require municipal or civil defence clearance.
Deposit the required capital and bank guarantee with a UAE licensed bank.
Submit MOHRE approval documentation, including shareholder passports, IDs, and statements of good conduct.
Register workers with MOHRE for labour cards and establishment cards through MOHRE's service centres for workers and employers.
Enroll in the Wage Protection System, known as WPS, before deploying any workers.
Renew annually with proof of maintained capital and guarantee.
Ongoing Compliance Obligations for Manpower Supply Companies
Wage Protection System. All salaries must be paid through registered UAE banking channels and reported electronically to MOHRE. Non-compliance can trigger penalties and licensing restrictions.
Valid worker documentation. Every deployed worker must hold an active labour card under the sponsoring company. Deploying workers on tourist or visit visas is illegal and can result in fines from AED 100,000 to AED 1 million.
Emiratisation targets under Nafis. Private companies with 50 or more skilled employees must meet minimum Emirati employment quotas, currently around 2 percent of skilled roles and rising annually. Companies that miss the target face a monthly Nafis contribution, cited at roughly AED 9,000 per unfilled quota slot.
Corporate Tax. UAE Corporate Tax at 9 percent applies to net taxable income above AED 375,000 per financial year. Manpower supply companies are standard taxable persons with no blanket exemption.
Sector specific clearances. High risk sectors such as construction may require additional municipal and civil defence approvals before workers can be deployed to site.
What to Check Before Partnering With a Manpower Supplier
If you are hiring workers through a manpower supply company rather than setting one up, due diligence matters as much as pricing.
Verify the license type. Confirm the supplier holds a genuine Temporary Employment or Manpower Supply license, not just a mediation license.
Confirm WPS enrollment for worker salary payments.
Check that every worker holds an active labour card under the supplier's sponsorship, not a visit or tourist visa.
Ask for evidence of a valid, active bank guarantee.
Request an itemized pricing breakdown covering base wage, benefits, accommodation, transport, supervision, and management fee.
Match the supplier's sector experience to your project. A construction focused supplier may not be the right fit for healthcare or hospitality staffing.
Confirm the supplier's Emiratisation and compliance posture, especially if the arrangement affects your own headcount thresholds.
Key Takeaways
Manpower supply is a distinct, heavily regulated model where the supplier sponsors and directly employs the workers. MOHRE licensing, a bank guarantee commonly around AED 1,000,000 for full manpower supply, and WPS enrollment are non-negotiable requirements.
Businesses partnering with a supplier should independently verify license type, WPS compliance, and worker documentation before mobilization. Regulatory figures such as capital, guarantees, Emiratisation quotas, and tax thresholds can change, so always confirm current requirements with MOHRE or a licensed advisor before making financial commitments.
Need a Compliant Manpower Supply Partner?
Sundus is a fully licensed manpower supply company in the UAE, MOHRE approved and WPS enrolled, supplying skilled and semi-skilled workers to construction, hospitality, logistics, and industrial businesses across the Emirates. If you are planning a project and need workforce mobilized quickly and compliantly, get in touch with Sundus for a transparent quote.
Note: This guide is for general informational purposes and does not constitute legal or financial advice. Consult MOHRE's official services portal directly or a licensed corporate services advisor for the most current requirements before setting up or contracting with a manpower supply company.
Frequently Asked Questions
What is a manpower supply company in the UAE?
A manpower supply company recruits and sponsors workers on its own payroll, then deploys them to client businesses under a contract, handling visas, salaries, and compliance on the client's behalf.
Which authority regulates manpower supply in the UAE?
The Ministry of Human Resources and Emiratisation, MOHRE, regulates manpower supply and recruitment activity under Federal Decree Law No. 33 of 2021 and Ministerial Resolution No. 1283 of 2010.
How much is the bank guarantee for a manpower supply license?
Commonly cited figures are AED 300,000 for a mediation or brokerage license and AED 1,000,000 for a temporary employment or combined manpower supply license. Confirm current amounts with MOHRE.
Can a free zone company offer manpower supply services?
Most free zones only permit HR consultancy, advisory, or payroll services. Full manpower supply and sponsorship generally requires a mainland license through MOHRE.
Is manpower supply subject to Corporate Tax in the UAE?
Yes. UAE Corporate Tax at 9 percent applies to net taxable income above AED 375,000 per financial year, and manpower supply companies are treated as standard taxable persons.
