Dubai ($39/sqft, 5.8% vacancy) and Tel Aviv ($59/sqft, 12.4% vacancy) compete on different axes: Dubai on rent and tax and Tel Aviv on talent depth.
Dubai ($39/sqft, 5.8% vacancy) and Tel Aviv ($59/sqft, 12.4% vacancy) compete on different axes: Dubai on rent and tax and Tel Aviv on talent depth.
| Metric | Dubai | Tel Aviv |
|---|---|---|
| Region | EMEA | EMEA |
| Country | United Arab Emirates | Israel |
| Class A rent (USD/sqft/yr) | $39 | $59 |
| Class A rent (local) | 145 AED | 220 ILS |
| Vacancy | 5.8% | 12.4% |
| Trend | rising | softening |
| Prime yield | 7.5% | 5.4% |
| Premium flex / seat / month (USD) | $980 | $880 |
| Submarkets covered | 6 | 5 |
| Corporate tax | 9% | 23% |
| Metric | Dubai | Tel Aviv |
|---|---|---|
| Typical term | 3 yrs | 5 yrs |
| Typical rent-free | 3 mos | 6 mos |
| Lease norms | 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. | Net leases. 5-7 year terms standard. Free rent of 4-9 months and TI of ILS 600-1,200/sqm typical on a 5-year deal. |
| Tax note | 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). | 23% Israeli corporate income tax. Approved Enterprise / Preferred Enterprise regimes provide reduced rates (7.5-16%) for qualifying R&D and high-tech activities. |
| Metric | Dubai | Tel Aviv |
|---|---|---|
| Talent index (0–100) | 78 | 90 |
| Talent note | Deepest cross-border financial-services and consulting talent pool in the Middle East. Average all-in compensation indexes 78. | Among the deepest tech, AI, cyber, and defense talent pools globally. Strong feed from Tel Aviv University, Technion, Hebrew University, and the IDF tech units (8200, Talpiot). English fluency is structural in tech. |
Dubai: Dubai Metro Red Line connects DIFC, Downtown, Internet City. Etihad Rail commuter network is in development.
Tel Aviv: Tel Aviv Light Rail Red Line (opened 2023), Israel Railways. Ben Gurion Airport (TLV) is rail-served. Tel Aviv Metro Lines 1, 2, 3 in planning. Bus network.
Dubai is the cheaper Class A market on a USD basis.
Tel Aviv has the deeper talent index (90/100 vs 78/100).
Dubai has the lower headline corporate tax (9% vs 23%). Local incentives can change the effective rate materially.
Dubai typical term is 3 years with 3 months free; Tel Aviv runs 5 years with 6 months free.
Dubai: Dubai Metro Red Line connects DIFC, Downtown, Internet City. Etihad Rail commuter network is in development. Tel Aviv: Tel Aviv Light Rail Red Line (opened 2023), Israel Railways. Ben Gurion Airport (TLV) is rail-served. Tel Aviv Metro Lines 1, 2, 3 in planning. Bus network.
Score Dubai, Tel Aviv 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.