KSA and the UAE Differences of Labor Laws
Saudi Arabia and the United Arab Emirates represent two of the major economies in the GCC countries and all over the region. In fact, the flourishing economy of the two countries have started attracting several talents and cadres from all over the globe to work there, over the past decades and expats are still coming to KSA and the UAE for years to come.
Understanding the Saudi Arabia labor law regulations 2026 is essential for anyone planning to work or invest in the Kingdom. These updated regulations outline employment contracts, working hours, probation periods, salary payments, and workers’ rights, providing a clear legal framework for both employers and employees. Compared to the UAE’s more flexible labor policies, the 2026 KSA regulations emphasize compliance with Sharia principles while ensuring protection and fair treatment for workers across all sectors.
Although there are some similarities between KSA and the UAE including the presence of various industries and sectors to flourish, there are some differences in some factors including the labor law of each country.
If you are wishing to invest and set up a company or a business in the UAE or KSA, you need to be aware of the labor law in each of the two countries. On the other hand, if you are an expat that wants to work in any of the two countries, you should also understand what are the differences between the labor laws in Saudi Arabia and in the United Arab Emirates.
The Contract of Employment
The contracts of employment in the Kingdom of Saudi Arabia are usually drafted in the Arabic language and they have to comply with the ideologies of Islamic Sharia. Moreover, work contracts in KSA commonly include a time period for the closure of the working time, one or two years for example.
According to Article (50) of the Saudi Labor Law, “An employment contract is a contract concluded between an employer and a worker, under which the latter undertakes to work under the employer’s management or supervision for remuneration.”
In the United Arab Emirates, on the other hand, the authorities of the UAE have lately launched a number of modifications that permit employment contracts to extend up to three years. This provides employees with the opportunity to have a more flexible lifestyle and work and personal life balance.
Days off and working hours
In the Kingdom of Saudi Arabia, an employee should complete eight hours per day, five days a week. Regarding annual vacations, employees are granted 30 days of paid annual leaves. The UAE, on the other hand, offers a more flexible working schedule. This sometimes allows employees a hybrid approach, in which they attend some days in the office, while other days, they can work remotely. The government of the UAE is trying to provide employees and workers the best balance between their working responsibilities and their personal life and activities.
According to the ‘Human Resources Law in the Federal Government’, the UAE recognizes these models of work patterns, which include the “Flexible work – Under this system, working hours or days may change based on the entity’s volume of work, and economic and operational variables. The employee may work for the employer at variable times according to work conditions and requirements.”
Periods of Probation
The United Arab Emirates and the Kingdom of Saudi Arabia both impose Probationary Periods on new employees. Probationary Periods are the amount of time new hires have to undergo to prove they are suitable for their new roles or positions. The UAE, in some cases, allows employees to change positions during the probation period, unlike the firmer labor rules in the KSA.
In KSA, Article (54) of the labor law, related to Probation Period, states that, “The worker may not be put on probation more than once with one employer. As an exception to this, it is permitted, by agreement of the parties to the contract – in writing – to subject the worker to another probationary period, provided that t is in another profession or another job, or that it has been for at least six months since the end of the worker’s relationship with the employer.”
Payment of Salary
The regulations in both countries call for the payment of the salaries of the employees in a timely manner. This is to ensure the employees get their rights on time. Seeking more flexibility in all aspects, the UAE permits the payment of salaries in any currency, the fact that would provide more options for both employers and employees.
According to Article 22 of Federal Decree-Law No. 33 of 2021 (the “New UAE Labor Law”), wages shall be paid in UAE Dirhams, but they may be paid in another currency if it is expressly agreed upon between both parties in the employment contract.
Equality in the workplace
Discrimination, due to any factor, is refrained in both the United Arab Emirate and the Kingdom of Saudi Arabia, according to rules and regulations. The Key Aspects of Equality in KSA Workplace Law include Equal Pay for Work: Ministerial Resolution No. (39860) and Non-Discrimination (Art. 61).
Aiming to be among the top countries in the world in equality and diversity in the workplace, the UAE has taken several procedures to guarantee equal pay for women and also equal chances to progress and flourish in their careers.
In the UAE, Federal Decree Law No. 34 of 2023 concerning Combating Discrimination, Hatred and Extremism prohibits contempt of religions, discrimination and hatred against one another and extremism of views.
Compliance with rules and regulations
Both the two countries seek all companies and firms, regardless of their size and industry, to comply with all rules and regulations. Therefore, in KSA, the Saudi Arabia’s Ministry of Human Resources and Social Development supervises all aspects related to the labor law. In the UAE, there is the Ministry of Human Resources and Emiratization (MOHRE) that is responsible for these matters.
Expats working in KSA and the UAE
The two countries that represent the most important economies of the GCC countries and the whole region largely depend on several expats in various roles and positions. At the time when Saudi Arabia has taken some procedures to increase employment chances for Saudis, the UAE is still moving forward to be the country that attracts the largest number of expats in the region.
Final thoughts
The United Arab Emirates and the Kingdom of Saudi Arabia are both working to enhance their economic conditions. However, there are some differences in the labor law and its implementation. KSA is still committed to the traditional and religious concepts, while the UAE moves towards modernity and a more flexible approach to employment.
