UAE vs Kuwait: construction business compared

The biggest differences: Corporate income tax 9% in UAE vs 15% in Kuwait; VAT 5% in UAE vs None in Kuwait; Employer — national 15% in UAE vs 11.5% in Kuwait.

Side by side

Item	UAE	Kuwait
Tax for Contractors
VAT	5%	None
Corporate income tax	9%	15%
Withholding on contractor payments	0%	0%
Zakat on companies	No	Yes
Tax authority	Federal Tax Authority (FTA)	Ministry of Finance — Tax Administration
Payroll & Social Insurance
Employer — national	15%	11.5%
Employee — national	11%	10.5%
Employer — non-national	0%	0%
Employee — non-national	0%	0%
Wage protection	Wage Protection System	Wage Protection System
Government Tenders
E-procurement platform	Digital Procurement Platform (DPP)	CAPT e-portal
Bid bond	1% – 5%	—
Performance bond	10%	10%
Retention	10%	10%
Registering a Contracting Company
Commercial registry	Each emirate's economic department (Dubai DET, Abu Dhabi ADDED) and free-zone authorities	Ministry of Commerce and Industry — Commercial Registry & licence
Online registration portal	—	Ministry of Commerce and Industry
Chamber membership required	Yes	—
Contractor Classification
Required for government work	Yes	Yes
Classification authority	Per emirate: Dubai Municipality (Contractor Register); Abu Dhabi Department of Municipalities and Transport	Central Agency for Public Tenders (CAPT) — contractor classification
Currency & Exchange Rate
Official currency	AED	KWD
Alternative currencies in use	None	None

— no documented figure in the sources, or set by each tender or contract. Withholding falls on payments to non-residents in most countries and on every contractor payment in a few — see each country’s tax page.