Saudi Arabia vs UAE: construction business compared

The biggest differences: Corporate income tax 20% in Saudi Arabia vs 9% in UAE; VAT 15% in Saudi Arabia vs 5% in UAE; Performance bond 5% in Saudi Arabia vs 10% in UAE.

Side by side

Item	Saudi Arabia	UAE
Tax for Contractors
VAT	15%	5%
Corporate income tax	20%	9%
Withholding on contractor payments	15%	0%
Zakat on companies	Yes	No
Tax authority	Zakat, Tax and Customs Authority (ZATCA)	Federal Tax Authority (FTA)
Payroll & Social Insurance
Employer — national	11.75%	15%
Employee — national	9.75%	11%
Employer — non-national	2%	0%
Employee — non-national	0%	0%
Wage protection	WPS	Wage Protection System
Government Tenders
E-procurement platform	Etimad	Digital Procurement Platform (DPP)
Bid bond	1% – 2%	1% – 5%
Performance bond	5%	10%
Retention	10%	10%
Registering a Contracting Company
Commercial registry	Ministry of Commerce — Commercial Register	Each emirate's economic department (Dubai DET, Abu Dhabi ADDED) and free-zone authorities
Online registration portal	Ministry of Commerce e-services	—
Chamber membership required	—	Yes
Contractor Classification
Required for government work	Yes	Yes
Classification authority	Contractor Classification Agency — Ministry of Municipalities and Housing (via Balady)	Per emirate: Dubai Municipality (Contractor Register); Abu Dhabi Department of Municipalities and Transport
Currency & Exchange Rate
Official currency	SAR	AED
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.