Country Explorer
Compliantly hire and expand your business in United Arab Emirates
The United Arab Emirates is recognised worldwide for its open, business-friendly economy. Dubai leads the way, offering modern infrastructure, investor-focused regulation, and unrivalled access to Europe, Asia, and Africa.
The United Arab Emirates (UAE) is a federation of seven emirates located in the Middle East, with Abu Dhabi as its capital and Dubai as its global commercial hub. Home to over 11 million residents from around the world, the UAE spans approximately 83,600 square kilometres and is known for its highly international population, modern infrastructure, and strategic position connecting Europe, Asia, and Africa.
Abu Dhabi
Capital
$49,000‒$51,000
GDP per Capita
$537–$568 billion
Total GDP
11.4 million
Total Population
0.890–0.900
Human Development Index
UTC +4
Time Zone
Arabic, English
Official Languages
UAE Dirham (AED)
Currency
83,600 km²
Land Area
Here's what you need to know
Hiring in the United Arab Emirates is fast and business-friendly, but it’s tightly regulated. Employment law, payroll, and immigration rules are strict, and compliance is non-negotiable.
Dubai may be built for global business, but employers must still follow UAE federal labour law, visa frameworks, and local payroll requirements.
Employment contracts are mandatory in the United Arab Emirates, and highly recommended. They should clearly outline:
Job title, duties, and responsibilities
Salary structure and benefits
Working hours and overtime terms
Leave entitlements (annual leave, sick leave, etc.)
Termination terms (notice period, severance pay)
Confidentiality clauses (if applicable)
Minimum Wage
There is no statutory minimum wage in the United Arab Emirates. Salaries are agreed contractually between employer and employee and must be clearly stated in the employment contract.
Payroll Terms
Salaries are usually paid monthly in AED and must comply with the Wage Protection System (WPS). Payslips should clearly show salary, allowances, deductions, and net pay.
Taxes
The UAE does not charge personal income tax. Employers do not withhold income tax, and employees do not file tax returns.
Mandatory Provident Fund (MPF)
There is no mandatory pension for expatriates. UAE nationals are covered under local social security schemes. Eligible employees receive an end-of-service gratuity on termination.
Hong Kong has mandated leave entitlements under the Employment Ordinance:
Annual Leave
Employees are entitled to 30 calendar days of paid annual leave after completing one year of service.
Statutory Holidays
Employees are entitled to paid UAE public holidays, as announced annually by the government.
Sick Leave
Employees may take up to 90 days of sick leave per year, subject to eligibility. The first 15 days are paid in full, the next 30 days are paid at half salary, and any remaining sick leave is unpaid.
Maternity Leave
Up to 60 days of maternity leave, including paid and unpaid portions, as defined by law.
Paternity Leave
Employees are entitled to 5 days of paid parental leave.
Probationary Period
Probation periods are allowed under UAE Labour Law and must be stated in the employment contract. They are commonly up to six months, with specific notice rules applying during this time.
Termination of Employment
Employment termination must follow UAE Labour Law and the terms of the contract. Notice periods apply, and employers must complete final settlements correctly, including any end-of-service gratuity.
Download the full Employment & Payroll Guide to United Arab Emirates
A practical guide to hiring, paying, and managing talent in the United Arab Emirates.
Get to know the United Arab Emirates
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