The United Arab Emirates (UAE) launched the Golden Visa programme in May 2019 as part of its broader strategy to attract and retain global talent. The initiative grants long-term residency—up to 10 years—and offers significant flexibility, allowing foreign nationals to live, study, and invest in the UAE without the need for a local sponsor.
While the Golden Visa provides greater independence and stability, it does not automatically grant work authorisation. Both professionals and employers must understand the compliance requirements around employment to avoid penalties and ensure smooth workforce planning.
A common misconception is that a Golden Visa serves as a blanket permit to work in the UAE. In reality, while it grants residency, it does not by itself authorise employment. Golden Visa holders must still obtain the appropriate work authorisation, either through the Ministry of Human Resources and Emiratisation (MOHRE) or the relevant free zone authority.
Without this step, both the employee and the employer risk serious legal and financial consequences.
Golden Visa holders employed in free zones may obtain a non-sponsored ID card through the relevant free zone authority. These typically remain valid between one and five years, depending on the jurisdiction.
Examples:
Each free zone follows its own procedures, and employers must adhere to the specific protocols in their jurisdiction.
Employers are legally responsible for ensuring that all Golden Visa holders working in their organisation have valid work authorisation. Assuming that a Golden Visa replaces the need for a labour card or contract is a compliance risk.
When employment ends, the work permit must be formally cancelled by the employer. Non-cancellation may:
Proper cancellation safeguards both employer and employee by closing obligations under the employment contract and ensuring compliance with MOHRE or free zone requirements.
The UAE Golden Visa provides exceptional long-term residency benefits and flexibility for professionals and investors. However, employers must not overlook the fact that separate work authorisation is still mandatory.
By securing the correct permits, keeping salary and quota obligations in check, and ensuring proper cancellation of authorisations, employers can remain compliant while maximising the opportunities that the Golden Visa framework offers.
While the Golden Visa provides greater independence and stability, it does not automatically grant work authorisation. Both professionals and employers must understand the compliance requirements around employment to avoid penalties and ensure smooth workforce planning.
Does the Golden Visa Automatically Allow Employment?
A common misconception is that a Golden Visa serves as a blanket permit to work in the UAE. In reality, while it grants residency, it does not by itself authorise employment. Golden Visa holders must still obtain the appropriate work authorisation, either through the Ministry of Human Resources and Emiratisation (MOHRE) or the relevant free zone authority.
Without this step, both the employee and the employer risk serious legal and financial consequences.
Work Authorisation Options for Golden Visa Holders
1. MOHRE Labour Cards
- Issued by MOHRE to private sector companies registered with the Ministry.
- Apply to employees of all nationalities.
- Serve as official proof of legal employment in the UAE.
- Valid for two years, renewable.
- Required even if the employee already holds a Golden Visa.
2. Non-Sponsored ID Cards (Free Zone Employment)
Golden Visa holders employed in free zones may obtain a non-sponsored ID card through the relevant free zone authority. These typically remain valid between one and five years, depending on the jurisdiction.
Examples:
- JAFZA (Jebel Ali Free Zone Authority) and DMCC (Dubai Multi Commodities Centre): Permanent Identity Cards (PICs), valid for one year, renewable.
- DDA (Dubai Development Authority): Non-sponsored ID cards valid for one, two, or five years, renewable.
Each free zone follows its own procedures, and employers must adhere to the specific protocols in their jurisdiction.
Penalties for Non-Compliance
Employers are legally responsible for ensuring that all Golden Visa holders working in their organisation have valid work authorisation. Assuming that a Golden Visa replaces the need for a labour card or contract is a compliance risk.
- Under Federal Decree-Law (9) of 2024, fines for employing workers without a valid work permit range from AED 100,000 to AED 1,000,000.
- Additional sanctions may include blacklisting, suspension of MOHRE services, and restrictions on business operations.
- For free zone companies, failing to comply with employment authorisation requirements can result in loss of quotas or other operational impacts.
Cancelling Work Authorisation
When employment ends, the work permit must be formally cancelled by the employer. Non-cancellation may:
- Create compliance risks under UAE labour law.
- Affect Wage Protection System (WPS) records.
- Prevent the release of quotas in free zones, limiting the employer’s ability to hire new staff.
Proper cancellation safeguards both employer and employee by closing obligations under the employment contract and ensuring compliance with MOHRE or free zone requirements.
Final Thoughts
The UAE Golden Visa provides exceptional long-term residency benefits and flexibility for professionals and investors. However, employers must not overlook the fact that separate work authorisation is still mandatory.
By securing the correct permits, keeping salary and quota obligations in check, and ensuring proper cancellation of authorisations, employers can remain compliant while maximising the opportunities that the Golden Visa framework offers.