Abu Dhabi ($517/sqft, 9.2% vacancy) and Dubai ($39/sqft, 5.8% vacancy) compete on different axes: Abu Dhabi on talent depth and Dubai on rent and tax.
Abu Dhabi ($517/sqft, 9.2% vacancy) and Dubai ($39/sqft, 5.8% vacancy) compete on different axes: Abu Dhabi on talent depth and Dubai on rent and tax.
| Metric | Abu Dhabi | Dubai |
|---|---|---|
| Region | EMEA | EMEA |
| Country | United Arab Emirates | United Arab Emirates |
| Class A rent (USD/sqft/yr) | $517 | $39 |
| Class A rent (local) | 1900 AED | 145 AED |
| Vacancy | 9.2% | 5.8% |
| Trend | rising | rising |
| Prime yield | 6.6% | 7.5% |
| Premium flex / seat / month (USD) | $720 | $980 |
| Submarkets covered | 5 | 6 |
| Corporate tax | 9% | 9% |
| Metric | Abu Dhabi | Dubai |
|---|---|---|
| Typical term | 3 yrs | 3 yrs |
| Typical rent-free | 6 mos | 3 mos |
| Lease norms | Net leases. 3-year terms with renewal options. Free rent of 4-9 months on a 3-year deal. Several free zones (ADGM, KIZAD) operate under separate property regimes. | Standard lease 3 years with annual rent escalators (typically 5%) and a renewal option. Service charges billed separately. Security deposit of 5-10% standard. Ejari (lease registration) is mandatory. |
| Tax note | 9% UAE federal corporate tax (effective from 2023, on profits above AED 375k). 0% for qualifying free zone persons (ADGM, masdar, etc.). VAT 5%. 9% will rise to OECD-aligned 15% under Pillar Two for in-scope groups. | Federal corporate tax of 9% on profits over AED 375,000 — applied since 2023. No personal income tax. No VAT on commercial leases (5% VAT on most other goods/services). |
| Metric | Abu Dhabi | Dubai |
|---|---|---|
| Talent index (0–100) | 80 | 78 |
| Talent note | Deep oil and gas, sovereign wealth, AI, and government talent. Strong international expat base; structurally smaller domestic Emirati workforce. Emiratization quotas apply to private-sector employers. | Deepest cross-border financial-services and consulting talent pool in the Middle East. Average all-in compensation indexes 78. |
Abu Dhabi: Bus network. Abu Dhabi-Dubai-Sharjah Etihad Rail (passenger service launching). Abu Dhabi International Airport (AUH) on city's edge. Heavy car dependency.
Dubai: Dubai Metro Red Line connects DIFC, Downtown, Internet City. Etihad Rail commuter network is in development.
Dubai is the cheaper Class A market on a USD basis.
Abu Dhabi has the deeper talent index (80/100 vs 78/100).
Tax rates are tied.
Abu Dhabi typical term is 3 years with 6 months free; Dubai runs 3 years with 3 months free.
Abu Dhabi: Bus network. Abu Dhabi-Dubai-Sharjah Etihad Rail (passenger service launching). Abu Dhabi International Airport (AUH) on city's edge. Heavy car dependency. Dubai: Dubai Metro Red Line connects DIFC, Downtown, Internet City. Etihad Rail commuter network is in development.
Score Abu Dhabi, Dubai and up to two more markets side-by-side on Class A rent, vacancy, talent, corporate tax, and premium flex pricing — all in USD.
Reviewed by Samuel Okafor — EMEA contributing editor. Last updated 2026-04-15. See our methodology and editorial standards.