The absence of income tax, high salaries, and an appropriate standard of living make the UAE a great place for immigrants to find employment. They, by the way, make up almost 90% of the country's population. In this guide, we look at what it takes to get a job in the UAE, what jobs are most in demand here, whether it is possible to find work in Dubai without knowing English, and what salaries you can expect.

How many foreigners live and work in the UAE?

According to the Ministry of Human Resources and Emiratization, more than 9 million foreigners (i.e., 88.52% of the total population) live and work in the UAE in 2023. The top five countries of origin of these foreigners include:

  • India
  • Pakistan
  • Bangladesh
  • Sri Lanka
  • Nepal

These countries account for more than 60% of the UAE's total foreign population. Other countries of origin include the Philippines, Egypt, Indonesia, and Ethiopia.

Foreigners play an important role in the UAE economy, making up more than 90% of the labor force in some industries. They are also a major source of tourism revenue, with more than 16 million visitors to the UAE in 2022.

Source: globalmediainsight.com

Requirements for foreigners seeking employment

Foreigners planning to work in the UAE should know that they cannot work on visitor or tourist visas. But it is not prohibited to look for a job while in the state as a tourist.

In order to legally live and work in the UAE, one must obtain a work permit=work visa and then a resident visa. Working without first obtaining the appropriate visa is illegal and may result in penalties and legal liability. Penalties apply to both the employer and the employee.

Obtaining a work permit

The UAE work permit is issued by the Ministry of Human Resources and Emiratization (MoHRE). To obtain this permit, foreigners must meet the following requirements:

  • Have a valid passport with a validity of at least 6 months.
  • Provide a certified diploma of higher education obtained outside the UAE.
  • Have a job offer from an employer located in the country.
  • Possess the required qualifications and work experience.
  • Be medically fit to work in the UAE, including testing for communicable diseases such as HIV and/or tuberculosis.

The specific requirements for obtaining a work permit may vary depending on the type of work and the nationality of the foreign worker. For example, medical professionals, such as doctors, laboratory technicians, and others, must pass an examination at the Ministry of Health and Prevention in order to practice their profession in the UAE. Some professions by law can only be practiced by citizens, such as lawyers.

The office will review the application and issue the document if the applicant meets all the requirements. The work permit is usually valid for one year but can be extended for a longer period.

Obtaining a resident visa

In addition to the requirements for obtaining a work permit, foreigners wishing to work in the UAE must also obtain a UAE residence visa or resident visa. Residency visas are issued by the General Directorate of Residency and Foreigners Affairs (GDRFA). To obtain a resident visa, foreigners must meet the following requirements:

  • Have a valid work permit.
  • Have a valid passport that is valid for at least 6 months.
  • Have the necessary health insurance.
  • Have sufficient funds to support themselves and all dependents while residing in the UAE.

After obtaining a work permit and resident visa, a foreign citizen can work in the UAE legally.

Conditions and peculiarities of work

Now we will tell you how the working culture in the UAE is organized in general.

Every employee in the Emirates, regardless of their citizenship and position, is entitled to a 30-day paid vacation. If your employer has not granted this vacation in the current year, you can take as much as 60 days next year. The company may not deprive you of your vacation for two consecutive years.

Host companies often provide additional benefits, such as paying for the foreign employee's accommodation, medical insurance, and sometimes even meals.

The probationary period for employment in most companies can last up to six months. If the candidate does not meet expectations, he or she can be dismissed without notice.

After formal hiring, either party has the right to terminate the contract. If an employer decides to terminate an employee, the notice period depends on the employee's length of service with the company: less than three months—7 days; from three months to five years—30 days; more than five years—90 days.

When an employee decides to leave at will, he or she must send a notice to the employer in accordance with the terms set out in the employment contract. However, if less than one year has passed since the contract was signed, the company may claim reimbursement of all employment costs, such as paperwork and flight tickets.

In addition, if the employer does not approve the termination in advance, it may result in a ban from employment for six months to a year. In cases of particular severity (e.g., a decision to leave without giving a reason), the ban may even be for life. If both parties agree to terminate the contract, it is advisable to request a no objection certificate from the employer.

It is important to note that there are no labor unions in the UAE. In the event of a conflict between the employer and the employee, the situation is reviewed by the General Directorate of Residency and Foreigners' Affairs (GDRFA) and the Ministry of Human Resources and Emiratization (MOHRE). The decision can be appealed in court.

An important aspect is the existence of a special Wage Protection System (WPS), which ensures that expats are paid even if the employer is dishonest.

Labor Reforms 2022–2023 in the UAE

As of February 2022, new labor laws came into effect in the UAE.

Amendment

Description

Abolition of open-ended contracts

From February 1, 2023, all private sector employees (except for the DIFC and ADGM financial free zones) must work on fixed-term contracts. The duration of a fixed-term contract is determined by agreement between the parties, but is no longer limited to 3 years.

Job loss insurance

The UAE has introduced an unemployment insurance scheme for all private and public sector employees. The program will cover 60% of the employee's basic salary for 6 months.  Employees are not eligible for insurance if they: are dismissed for disciplinary reasons; resign; move to a new job; or leave the country.

Post-employment benefits

The new labor legislation clarifies and expands the benefits when employees are dismissed. For example, employees are now entitled to one day of severance pay for every 21 working days of employment

Increase in the length of annual leave

The new labor legislation has increased the length of annual leave for all employees. For example, employees with less than 5 years of service are now entitled to 30 days of annual leave compared to 21 days.

Flexible working hours

The new legislation allows employers and employees to negotiate flexible working arrangements such as telecommuting and part-time work.

Wage equality

The new labor law prohibits discrimination in employment, including on the basis of gender. This means that employers are obliged to pay women and men the same wages for work of equal value.

In addition to the above reforms, the UAE has ratified a number of international labor conventions, including the International Convention on the Protection of the Rights of All Migrant Workers and Members of Their Families. This demonstrates the UAE's commitment to protecting the rights of all workers, regardless of their nationality. 

The 2022-2023 labor reforms represent a significant step forward for the UAE. They will help create a more flexible and fair labor market and better protect the rights of all workers.

Taxes for foreign workers

Foreign workers in the UAE are subject to the same tax laws as UAE nationals, which means that they do not pay income tax on income earned from sources in the UAE or abroad. This is because there is no personal income tax in the UAE.

However, foreign workers in the UAE may be subject to other taxes, such as:

  • Value Added Tax (VAT). This is a consumption tax that is levied on most goods and services sold in the UAE. The standard VAT rate is 5%.
  • Excise Tax. This is a selective tax that is levied on certain goods and services, such as tobacco products, carbonated drinks, and energy drinks.
  • Social security contributions. Employees in the UAE are required to make social security contributions, which are used to fund the country's pension and health care systems. The rate of social security contributions is 20% of an employee's total salary, of which 5% is paid by the employee and 15% by the employer.

It is important to note that foreign workers employed by companies registered in the UAE Free Trade Zone may be exempt from certain taxes, such as social security contributions. 

It is also worth finding out about the tax treaties your home country has with the UAE. These agreements may provide tax benefits or help to avoid double taxation. 

What specialties are especially in demand?

Professions in the following fields are popular among foreigners in the Emirates:

  • IT: software engineers, cybersecurity specialists, web developers, mobile application developers, etc.
  • Healthcare: doctors, nurses, dentists, pharmacists, and other medical workers.
  • Finance: accountants, financial analysts, risk managers.
  • Engineers: civil engineers, mechanical engineers, electrical engineers, and others.
  • Education: teachers, professors, and others.
  • Marketing: sales executives, marketing managers, etc.
  • Hospitality: hotel managers, cooks, waiters.
  • Construction: project managers, civil engineers.
  • Logistics and supply chain management: supply chain managers, logistics managers, and other specialists in logistics and supply chain management.
  • Human Resources: HR managers, recruiters.

In addition to these professions, foreigners with skills and experience in areas such as customer service, administration, and management are in high demand.

It is important to note that the UAE labor market is highly competitive, and foreigners need to have serious skills and experience to be successful. It is also important to know the UAE work culture and adapt to the local lifestyle.

How much can I earn in the UAE? Average salaries

Average salaries in the UAE for foreigners depend on a number of factors, including industry, experience, qualifications, and nationality. However, in general, foreigners tend to earn more in the UAE than in their home country.

According to Salary Explorer, the average salary in Dubai is AED 258,000 per year ($70,256 at current exchange rates). However, this figure can vary greatly depending on the position. For example, the average salary for a doctor in Dubai is AED 400,000 (about $110,000) per year, and that of a teacher is AED 100,000 (about $27,000) per year.

Below are examples of average salaries for foreigners in the UAE in different industries:

  • Finance: AED 300,000 (about $82,000) per year.
  • Healthcare: 400,000 dirhams (about $110,000) per year.
  • Information Technology: AED 300,000 (about $82,000) per year.
  • Education: AED 100,000 (about $27,000) per year.
  • Sales and marketing: AED 250,000 (about $70,000) per year.
  • Customer service: AED 150,000 (about $40,000) per year.
  • Retail and hospitality: AED 220,000 (about $60,000) per year.

It is important to note that these are only averages, and actual salaries may vary depending on individual circumstances.

One final thing: Can a foreigner apply for UAE citizenship?

Foreigners can obtain UAE citizenship, but the process is not an easy one. There are two main ways to obtain UAE citizenship:

  • Naturalization. Foreigners who have been legally residing in the UAE for at least 30 years and are in good standing can apply for naturalization. However, they must be fluent in Arabic and have a basic understanding of Islamic culture and law.
  • Exceptional Merit. The UAE government can also grant citizenship to foreigners who have made exceptional contributions to the country in the fields of business, science, technology, culture, or art.

In addition, the UAE government has recently introduced a new program that allows investors and talented individuals to obtain citizenship on an expedited basis. Applicants must meet certain criteria, such as having a certain level of wealth or investing a certain amount of money in the UAE.

It is important to note that obtaining UAE citizenship is ultimately at the discretion of the government. There is no guarantee that an application will be approved, even if the applicant meets all the requirements.