United Arab Emirates: Guarantee Deposits to be Required by Dubai International Financial Centre
United Arab Emirates: Guarantee Deposits to be Required by Dubai International Financial Centre
Effective January 24, 2010, employers operating in the Dubai International Financial Centre (DIFC), one of the United Arab Emirates’ Free Trade Zones, must submit a refundable guarantee deposit of AED 2,500 (approximately US $680) with each new work permit application for a foreign national or permit renewal application.
By February 20, 2010, employers must submit the guarantee for all existing work permit holders. Entities with more than 50 employees must submit a single, total deposit of AED 125,000 either in cash or in the form of a bank guarantee. DIFC authorities will hold the deposit to ensure employers and their foreign workers comply with work permit rules and obligations.
All guarantee payments must be made in favor of DIFC Investments LLC. The guarantee deposit will be refunded when the employee visas are either cancelled or transferred. The Personnel Sponsorship Agreements (PSA) that employers must sign when they establish their operations in the DIFC already contain provisions requiring the guarantee deposits to sponsor a work permit, but these provisions are only now being implemented.
The content of this alert is for information purposes only. If you have any questions, please do not hesitate to contact the global immigration professional with whom you work at Fragomen Global Immigration Services or send an email to middleeast@ae.fragomen.com.
Source: Fragomen
