Hire in United Arab Emirates
United Arab Emirates — 10 million population, $49,450 GDP per capita. Everything you need to know about employment law, tax, compliance and hiring in United Arab Emirates.
Capital
Abu Dhabi
Currency
UAE Dirham (AED)
Languages
Arabic, English
Time zones
UTC+4 (GST)
Hiring overview
- Typical time to hire
- 1-2 weeks for contractor, 2-4 weeks for full-time (visa processing adds 2-4 weeks)
- Entity requirement
- Mainland LLC (requires local service agent for non-GCC nationals) or free zone entity. Free zones offer 100% foreign ownership.
- EOR available
- Yes — from $399/employee/month through a Corpshore entity
- Contractor of record
- Yes — from $39/worker/month
Employment law
- Standard workweek
- 40-48 hours (8 hours/day; government sector moved to 4.5-day week in 2022)
- Maximum weekly hours
- 48 hours
- Minimum annual leave
- 30 calendar days after 1 year (2 days/month during first year)
- Public holidays
- 10 per year
- Maternity leave
- 60 days (45 at full pay + 15 at half pay)
- Paternity leave
- 5 working days (within 6 months of birth)
- Notice period
- 30 days minimum (both employer and employee). Contract may specify up to 3 months.
- Severance
- End of service gratuity: 21 days basic salary per year (first 5 years) + 30 days per additional year. New DEWS (DIFC) and alternative savings schemes being introduced.
- Probation
- Up to 6 months
- Overtime rules
- 25% premium (normal overtime), 50% premium (overtime between 10pm-4am). Friday overtime: 50% premium.
Tax overview
- Income tax range
- 0% (no personal income tax)
- Corporate tax
- 9% (effective June 2023, on taxable income above AED 375,000)
- Social contributions
- UAE nationals only: 5% employee + 12.5% employer (Abu Dhabi) or 5% + 15% (other emirates). No contributions for expatriates.
- VAT / GST
- 5% (introduced 2018)
- Tax year
- Calendar year or financial year
- Treaty network
- Over 130 tax treaties
Compliance landscape
- Worker classification
- New Labour Law (Federal Decree-Law No. 33 of 2021, effective February 2022) modernised employment relations. Freelancer visas available in some free zones.
- Data protection
- Federal Decree-Law No. 45 of 2021 (Personal Data Protection Law). Free zones (DIFC, ADGM) have separate data protection regimes aligned with international standards.
- Right to work
- All foreign workers require a work permit and residence visa sponsored by an employer. Free zone employment has separate licensing. Golden visa for investors, entrepreneurs, and skilled professionals.
- Non-compete
- Enforceable under Article 10 of the Labour Law. Limited to 2 years, specific geography, and must protect a legitimate interest. Courts assess proportionality.
- Collective bargaining
- Trade unions are not permitted under UAE law. Ministry of Human Resources handles labour disputes. Wage Protection System (WPS) ensures salary payments.
Payment rails
WPS (Wage Protection System) mandates electronic salary payments through approved channels. UAEFTS handles interbank transfers. AED is pegged to USD. Stripe and Wise support AED.
Key considerations for hiring
- No personal income tax makes the UAE attractive for high earners
- 2022 Labour Law introduced fixed-term contracts as the default (replacing unlimited contracts)
- Free zones (DIFC, JAFZA, DMCC, Abu Dhabi Global Market) each have distinct rules and benefits
- Dubai and Abu Dhabi are regional hubs for MNCs serving the Middle East, Africa, and South Asia
Business and cultural context: United Arab Emirates
Business culture
Cosmopolitan, fast-paced, and deal-oriented. Expats constitute ~90% of the private-sector workforce. Arabic courtesies (meeting, coffee, relationship-building) precede business. Friday-Saturday weekend (most sectors).
Key industries
Talent pool strengths
Historical context
The UAE's economic transformation from a pearling economy to a global business hub occurred in a single generation. Dubai's free zone model, pioneered with Jebel Ali Free Zone (1985), created regulatory enclaves that attracted international companies. The DIFC (2004) and ADGM (2015) established common-law courts within a civil-law country, a governance innovation now studied worldwide.
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