UAE vs Saudi Arabia: Which Country Is Better for Software Teams

Managing a software team isn’t just about having skilled professionals on board—it’s also about choosing the right location. In fact, the success of software team development heavily relies on the opportunities your chosen location provides.

Both the UAE and Saudi Arabia rank among the top countries for starting a software team. This is largely because both boast strong tech sectors and offer enticing opportunities in this field.
But which one is the better choice for building a thriving software business? Let’s dive in to find out. 

Factors to Consider Before Choosing a Location for Your Business

As we've already mentioned, both the UAE and Saudi Arabia are highly engaging destinations for software teams. However, the right choice depends on your business goals and priorities. Let’s now skim through the key factors you should consider before getting started and see how each country measures up.

Business Environment

The UAE and Saudi Arabia both have quite business-friendly environments. In the UAE, starting a business is rather simple. Depending on the type of business you plan to run, you can establish it in free zones, offering benefits like 100% foreign ownership and significant tax incentives.

In Saudi Arabia, businesses can take advantage of various government initiatives. For example, if you manage a software team developing AI-powered products, you could benefit from tax breaks and operate within special economic zones.

So, from a business environment perspective, both countries can be quite a good match.

Recruitment

The UAE is renowned for its diverse talent market. In other words, you’ll have access to top professionals from around the globe. If your goal is to recruit skilled individuals with varied backgrounds, Dubai is an excellent choice. Plus, the process is quite simple.

For example, if you’re looking to hire affordable web design agencies in Dubai, there’s no need to go through a complex recruitment process. You can simply choose the right agency from a shortlist and get started right away.

In Saudi Arabia, everything is not that simple. Here, employers prioritize hiring local talent first. So, if you want to access talent from around the world, then in Saudi Arabia, it will be pretty hard.

Operational Costs 

If you’re planning to build an in-house software team, you’ll need to rent office space. In the UAE, the costs for accommodations and office spaces are relatively high. In contrast, Saudi Arabia offers more affordable living and operational costs. So, if you’re seeking a budget-friendly solution, Saudi Arabia might be the better choice.

Just a quick side note: If you're running a startup with a small software team and need a budget-friendly option, consider remote teams. You could also adopt a hybrid work model and pay for co-working spaces. As your business grows, you can then think about renting office space when the time is right.

Infrastructure and Connectivity

Can you imagine managing a solid software team without a robust infrastructure and connectivity? Probably not. These are crucial factors to consider when choosing a location to set up your team.

In this regard, the UAE truly leads the way with world-class infrastructure and high-speed internet—vital for software teams. On top of that, Dubai offers state-of-the-art data center facilities where you can set up virtual private servers (VPS), ensuring low latency and high-performance hosting for your app. This will only elevate your software team's overall efficiency.

As for Saudi Arabia, it is still catching up in terms of infrastructure and connectivity. However, there are tools available to help you navigate these challenges smoothly. For example, by utilizing UltaHost’s VPS in Saudi Arabia, you may ensure better control over your hosting environment, benefiting from local server performance and improved reliability.

Lifestyle

Though it may not seem like a crucial factor at first, consider the quality of life in the location where you’re building your software team. The UAE is famous for its modern lifestyle and is a hub for entertainment.

Dubai's diversified population makes it easier for expatriates to settle in. While Saudi Arabia has a growing entertainment sector and is becoming more welcoming to foreigners, it remains more conservative compared to the UAE.

Wrapping Up

To start a smooth business and manage your software team effectively, you need to consider the conditions in which you're operating. We've highlighted key factors to focus on and explored the situation in the UAE and Saudi Arabia. We hope this publication helps you make a better decision on the perfect place to start and lead your software team.