United Arab Emirates: Suspension of Employment Sponsorship Transfer in Effect Across Free Zones in Dubai

• Standard immigration process for employer sponsorship. Employers in Dubai free zones seeking to hire a foreign national who is currently employed by a company within the same free zone or in another free zone in Dubai must now follow the standard immigration process instead of the previously available streamlined option. Therefore, a foreign national must have their current employer cancel their current employment residence permit before the new employer applies to sponsor a new employment residence permit on behalf of the foreign national. Previously, employers were able to benefit from a streamlined employment sponsorship transfer option which significantly reduced the application processing timeline, notably eliminating the requirement to cancel the respective employee’s existing residence permit which would then have implications on sponsored dependents (if any).
• Dependent sponsorship. The reversion to the standard immigration process will affect dependents because their dependent sponsorship will lapse after the primary foreign national’s employment residence permit has been canceled by the original employer and before the new employer has submitted the new employment sponsorship. This would require the dependent to exit the United Arab Emirates after their grace period expires, which can range from 30 days to six months. However, there is a pathway for a dependent’s visa to be placed “on hold” (temporarily eliminating the cancelation requirement)—but the process is discretionary and applies only to those dependents whose residence permits remain valid for at least three months from the date of placing their residence permit on hold.

• Delayed start dates. It will take longer, as much as double the time, for employers to onboard a foreign national who is currently employed by a company within the same free zone or in another free zone in Dubai, as they can no longer benefit from a streamlined employment sponsorship transfer process.
• Impact on dependents. Dependents should be aware that if there is a lapse in the principal applicant’s employment or alternative sponsorship, they will not be able to exit and re-enter the United Arab Emirates until the new employment residence permit is approved.

It is unclear why the streamlined process has been suspended and how long this suspension will be in place.

Government authorities are expected to announce if this suspension is temporary or permanent. Fragomen will provide updates when this information is available.