There is a growing culture of professionals choosing to work independently rather than being employed by another employer. Many talented artists, designers, consultants, and other skilled professionals now prefer to offer their expertise on a freelance basis to individuals and businesses that require their services. Recognising this shift towards flexible working arrangements, the UAE has introduced a legal framework to regulate and encourage freelancing. The Federal Decree-Law No. 33 of 2021 Regulating Labour Relations and Cabinet Resolution No. (1) of 2022 Concerning the Executive Regulations of Federal Decree-Law No. (33) of 2021 Regulating Labour Relations legally recognise freelancing as a legitimate form of work.

Freelance Work under UAE Labour Law

Article 8 of Cabinet Resolution No. (1) of 2022 Concerning the Executive Regulations of Federal Decree-Law No. (33) of 2021 Regulating Labour Relations provides for freelance work. Under this provision:

  1. Freelancing is recognised as an independent and flexible work arrangement. Unlike traditional employment, a freelancer provides services, performs tasks, or completes projects for individuals or establishments on an independent basis.
  2. A person working as a freelancer is not considered an employee. Accordingly, employment rights that generally arise from an employer-employee relationship do not automatically apply to a freelance arrangement.

Freelance Work Permit

A Freelance Work Permit:

  1. Allows individuals to work independently.
  2. Does not require sponsorship by an employer.
  3. Does not require an employment contract.
  4. Enables individuals to earn income directly from providing their services.
  5. Permits the provision of services to both individuals and establishments.
  6. Confirms that the individual is not regarded as an employee of the person or establishment to whom the services are provided.

Green Residency for Freelancers

The Green Residency is a long-term residence permit introduced by the UAE to attract skilled professionals, investors, entrepreneurs, and freelancers. It is granted through self-sponsorship, eliminating the requirement for an employer or individual sponsor. The introduction of the Green Residency forms part of the UAE’s broader strategy to enhance its competitiveness as a global destination for talent and investment while supporting a flexible and innovation-driven economy.

Key Benefits of the Green Residency

  1. A renewable residence permits valid for five years.
  2. Self-sponsorship, eliminating the requirement for a sponsor within the UAE.
  3. The ability to sponsor eligible family members, including a spouse and children, in accordance with the applicable laws and regulations.
  4. Greater flexibility through prescribed grace periods following the expiry of the residence permit.

Eligibility for Freelancers and Self-Employed Persons

To qualify for a Green Residency as a freelancer or self-employed person, an applicant must generally:

  1. Hold a valid freelancing or self-employment permit issued by the Ministry of Human Resources and Emiratisation (MOHRE).
  2. Possess a bachelor’s degree, specialised diploma, or an equivalent qualification.
  3. Demonstrate annual income from freelancing of not less than AED 360,000 during the preceding two years, or its equivalent in foreign currency; or
  4. Provide satisfactory evidence of financial solvency throughout the intended period of residence in the UAE.

Conclusion

The UAE has established a comprehensive legal framework that recognises freelancing as a legitimate and flexible mode of work. Through the introduction of the Freelance Work Permit and the Green Residency, independent professionals are provided with greater opportunities to live and work in the UAE without the need for traditional employer sponsorship.

We at Ayesha Al Dhaheri Advocates & Legal Consultants, we provide comprehensive legal guidance on UAE labour and immigration laws.