Why Are People Attracted to Dubai?

Job seekers are attracted to the Dubai market because of the fact that earnings are tax-free in Dubai. The UAE federal government and the Emirate of Dubai do not levy any kind of taxes on individual earnings. What you make is entirely yours. For individual income earners, this means having more to send back home or to save.

That’s why the Dubai job market is attracting talented professionals and skilled workers from all over the world. From Europe to America, even from Asia-Pacific and Africa, the Dubai workforce represents all five continents and over 100 countries. Besides tax-free earnings, individuals are attracted to jobs in Dubai for any or all of the following reasons:

  1. Career opportunities for talented professionals. Professionals looking to expand their practice or explore new markets, even those looking to take on a new career path, find excellent career opportunities in Dubai. Due to rapid development and expansion in the region, many multi-national companies are establishing Middle East headquarters and offshore locations in Dubai. These businesses are tapping into the global talent market that brings together the best of both worlds.
  2. Expanded opportunities for skilled and semi-skilled workers. Dubai’s most active industries – construction, hospitality and retail – are enjoying steady growth whilst these industries are almost dormant in neighboring countries. Workers with skills relevant to these industries are naturally attracted to jobs in Dubai where these job opportunities are not available back home.
  3. Experience the world in Dubai. There are at least a hundred different nationalities represented in Dubai’s community of residents and tourists. People from different parts of the world find themselves at home here because of the sense of familiarity they get. Hear people speak your native language. Walk into a grocery and find your favorite food. If you feel like exploring the exotic tastes of the Far East, Indian, Chinese and even Filipino restaurants are in town. Make new friendships with people whose backgrounds are entirely different from yours. Dubai’s cosmopolitan feel caters to fashion and trends all over the world.

Is Dubai Really Tax Free?

Well, actually no, that is not true. While there are no income taxes, value-added taxes (VAT), gross sales taxes (GST), personal taxes, nor
capital gains taxes in Dubai, there are in fact other types of taxes levied on certain activities such as:

  • Municipal property tax levied on property owners. This tax is passed on to occupants as part of the rent agreement. In effect, if you live and work in Dubai, you are indirectly paying property taxes.
  • Service charges collected at Dubai’s hotels and restaurants are also a form of indirect taxes.
  • Import tax of 5% is levied on all imports to the UAE. This is perhaps the only formal, direct tax levied in the UAE, although goods such as tobacco, alcohol, pork products, raw gold for manufacture and arms and ammunition are subject to higher import tax rates. Even if you’re not the importer for these goods, the import tax is normally passed on to final consumers as part of selling prices.
  • Road Taxes or Toll fees (SALIK). Some of Dubai’s major routes and thoroughfares are now collecting toll fees from motorists using these routes.

Additionally, every single municipal or government sector service charges fees, even typing and translation services.

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