The United Arab Emirates, especially Dubai, has long been the Gulf's expat capital. Saudi Arabia, under its Vision 2030 reforms, is now competing hard for talent with huge projects, rising salaries and new residency options. Here is how they compare, with a note on Qatar.

Cost of living

From our data for Saudi Arabia and the UAE:

  • Cost of living index: Saudi Arabia 50, UAE 65 (New York = 100).
  • Average one-bedroom rent: Saudi Arabia about $900, UAE about $1,500.
  • Groceries for one: Saudi Arabia about $280, UAE about $350.

Saudi Arabia is generally cheaper, especially for housing. Dubai rents have climbed sharply since 2021. Many employers in both countries include housing or allowances, so compare full packages, not just salaries.

Tax

Neither country taxes salaries. VAT is 15% in Saudi Arabia and 5% in the UAE. Saudi Arabia charges a monthly levy for expatriates' dependants, which some employers cover. Corporate tax is 9% in the UAE above a profit threshold, and 20% for foreign-owned companies in Saudi Arabia. Qatar, for comparison, has no income tax and no VAT.

Residence

  • Saudi Arabia: most expats are employer-sponsored on an iqama. Premium Residency allows sponsor-free living, including permanent residence for SAR 800,000, renewable residence for SAR 100,000 a year, and categories for talent, investors, entrepreneurs and property owners.
  • UAE: employment visas, a one-year remote work visa for people earning about US$3,500 a month from abroad, and the ten-year Golden Visa for investors (for example, property worth AED 2 million), entrepreneurs, skilled professionals and outstanding talent.

The UAE has more established and flexible routes, including for remote workers and freelancers. Saudi Arabia's Premium Residency is newer and more expensive at the top end.

Lifestyle

The UAE is more liberal and international: alcohol is widely available in licensed venues, dress codes are relaxed in Dubai and Abu Dhabi, and there is a huge expat community. Saudi Arabia has opened up significantly, with concerts, cinemas, mixed venues and tourism, but alcohol remains heavily restricted and social norms are more conservative. Saudi Arabia's weekend is Friday and Saturday, while the UAE moved to a Saturday–Sunday weekend in 2022.

Career opportunities

Saudi Arabia's giga-projects, such as NEOM, the Red Sea developments and Riyadh's expansion, create strong demand in construction, engineering, tourism and finance, often with high packages. The UAE offers a more diversified market in finance, aviation, trade, tech and hospitality, and is a regional headquarters hub.

Healthcare and safety

Both require employers to provide health insurance, and both are very safe, with low crime. Qatar is also among the world's safest countries.

Which should you choose?

  • Choose Saudi Arabia for lower living costs, high packages in fast-growing sectors and a chance to be part of a rapidly changing country.
  • Choose the UAE for a more liberal lifestyle, flexible residence including remote-work and Golden Visas, and a large international community.
  • Consider Qatar if you want tax-free income without VAT and very high safety, in a smaller country.

Compare Saudi Arabia and the UAE side by side in our comparison tool.