How Much Do Recruitment Agencies Charge in the UAE and Saudi Arabia?
IT recruitment guide · Updated November 2026
Recruitment agency fees vary by model, role and agency. This guide explains how agencies in the UAE and Saudi Arabia charge employers and what the law says about recruitment costs. It also shows the full cost of a hire and how to compare agencies.
Short answer: agencies usually charge employers a percentage of the hire’s annual salary. Staffenza charges 15–20% of the first-year package for direct hires, with a 3-month replacement guarantee. Candidates must not be charged.
Recruitment Fee Models Explained
Agencies price their work in different ways. The model affects when you pay and how much risk you carry.
| Model | How you pay | Typical use |
|---|---|---|
| Contingency | A percentage of annual salary, paid only when you hire | Mid-level and senior roles |
| Retained search | Part of the fee up front, the rest at stages | Executive and hard-to-fill roles |
| Recruitment process outsourcing (RPO) | A monthly fee or a fee per hire | Hiring a large number of people over a period |
| Contract staffing | A monthly rate while the person works for you | Temporary or project roles |
| Staff augmentation | Salary plus a fixed monthly fee | Remote engineers who join your team |
Agency fees in Dubai are usually a percentage of the worker’s annual salary, set by each agency. Ask every agency for its fee, payment terms and replacement period in writing.
Staffenza Fees for Tech Hiring
| Service | Fee | When you pay |
|---|---|---|
| Direct hire | 15–20% of the first-year package, with a 3-month replacement guarantee | Once per hire |
| Remote staff augmentation | USD 225 a month on top of salary | Monthly |
| Employer of Record | AED 899 per employee per month, plus government costs at actual cost | Monthly |
| Recruitment process outsourcing | Quoted per scope | As agreed |
Example: a developer with a first-year package of AED 240,000 costs AED 36,000 to 48,000 to hire at 15–20%.
What the Law Says About Recruitment Costs
UAE
Federal Decree-Law No. 33 of 2021 requires the employer to bear recruitment and employment costs. The employer must not charge the worker any fees for employment, directly or indirectly.
Costs the employer covers include work permit fees, residence visa costs, medical tests, Emirates ID and mandatory health insurance. Private recruitment agencies need a licence from MOHRE.
Saudi Arabia
The Saudi Labour Law makes the employer responsible for recruitment fees, the Iqama, work permit fees and their renewals. Workers must not be asked to repay them.
This section is general information, not legal advice. Confirm current rules with MOHRE, MHRSD or a qualified adviser.
The Full Cost of a Hire
The agency fee is only one part of the cost. Budget for these as well:
- Government costs: work permit, visa, medical test and Emirates ID or Iqama.
- Health insurance: mandatory in the UAE and Saudi Arabia.
- End-of-service benefits: see the UAE gratuity calculator and the Saudi end of service calculator.
- Localisation: Emiratisation or Saudization targets that rise with headcount.
- Onboarding: equipment, licences and management time.
Compare direct hire, remote staffing and EOR side by side in the hiring cost calculator.
How to Compare Recruitment Agencies
- Check the agency’s licence and the sectors it serves.
- Ask how candidates are tested. Staffenza uses five steps: CV and portfolio review, technical assessment, live technical interview, English check and references.
- Get the fee, the definition of “package” and the payment terms in writing.
- Compare replacement periods and what happens if a hire leaves.
- Ask for the typical shortlist size and how often you will get updates.
- Check whether the agency can also offer remote staffing or EOR as your needs change.
IT Recruitment in Dubai and Riyadh
Staffenza recruits developers, cloud, data, AI and security specialists for companies in the UAE and Saudi Arabia. See our IT recruitment agency in Dubai and IT recruitment agency in Riyadh.
Email [email protected] with the role and budget for a written quote.
Related Guides and Tools
Recruitment Agency Fee FAQs
How much do recruitment agencies charge in Dubai?
Agencies usually charge employers a percentage of the hire’s annual salary, set by each agency. Staffenza charges 15–20% of the first-year package, with a 3-month replacement guarantee.
Can a recruitment agency charge candidates in the UAE?
No. Under Federal Decree-Law No. 33 of 2021, the employer bears recruitment costs. Workers must not be charged employment fees, directly or indirectly.
Who pays recruitment costs in Saudi Arabia?
The employer. The Saudi Labour Law makes the employer responsible for recruitment fees, the Iqama, work permit fees and their renewals.
What is a replacement period?
It is the time during which the agency finds a new candidate if a hire leaves or is not a fit. Staffenza offers a 3-month replacement guarantee on direct hires.
Is the recruitment fee paid once or monthly?
A direct hire fee is paid once per hire. Contract staffing and staff augmentation are paid monthly for as long as the person works for you.
What does “first-year package” mean?
It is the total annual pay agreed in the offer, usually salary plus fixed allowances. Confirm the exact definition in your agency contract.
How do I check a recruitment agency is licensed in the UAE?
Private recruitment agencies in the UAE need a MOHRE licence. Ask for the licence details and check them before you sign.