Doing business in the UAE

The United Arab Emirates (UAE) has established itself as a leading international business hub and investment destination. Situated along key global trade and transport routes, the UAE offers strong connectivity to markets across Asia, Africa, and Europe, facilitating access to a combined consumer base of more than two billion people. Coupled with its world-class airports and seaports, the UAE acts as a gateway to regional and global markets.

Supported by a steady flow of business opportunities, investor friendly legislation, a robust financial system, well developed infrastructure for both business and quality of life, and access to skilled human resources, the UAE emerges as an attractive location for a range of business activities, including:

Creating holding, trading, financing, support platform(s) for a group’s international business
Conducting regional business from a hub in the UAE
Conducting local business in the UA

Several government led initiatives, spanning the near and longer term, intend to further enhance the business environment and promote development within the Emirates. This guide seeks to provide you with introductory, practical information on doing business in the UAE, particularly from the perspective of an inbound investor.

Recent highlights

The Dubai Executive Council has issued Resolution No. (11) of 2025, introducing a regulatory framework that permits free zone companies to conduct business activities outside their specific free zone, i.e. on the mainland, within the Emirate of Dubai. This resolution applies to non-financial entities and aims to enhance operational flexibility while maintaining compliance with existing laws. Under this framework, free zone companies can operate on the mainland by obtaining either a branch license or a temporary permit. Branch licenses—whether for establishing a branch within the emirate or operating from the free zone—are valid for one year and are renewable. Temporary permits allow specific activities for up to six months. The Department of Economy and Tourism (DET) will oversee the licensing process and is expected to issue a list of eligible economic activities in due course.

On 28 October 2025, Jebel Ali Free Zone Authority (JAFZA) and Dubai International Financial Center (DIFC) announced the signing of a new strategic framework designed to enable dual-zone operations for companies seeking to expand their financial, industrial, and corporate structuring activities within Dubai. The initiative seeks to connect JAFZA’s trade and industrial ecosystem with DIFC’s advanced legal and financial platform, creating a seamless pathway for businesses to set up, operate, and scale across both jurisdictions. This development aligns with the Dubai Economic Agenda (D33) for the UAE to become a global hub for trade, finance, and innovation.

On 22 July 2025, the Dubai Free Zones Council (DFZC) announced the implementation of the Freezone One Passport initiative – a unified licensing framework designed to facilitate seamless business expansion across Dubai's participating free zones. Under this scheme, companies licensed in one Dubai free zone can also operate in others without needing separate trade licenses or a full re-incorporation process. The ease of doing business has become a cornerstone of Dubai’s appeal, making it an incubator for both innovation and investment. It also aligns with the Dubai Economic Agenda D33, the emirate’s strategic plan to double its GDP by 2033.

In October 2025, the UAE enacted Federal Decree‑Law No. 20 of 2025, amending the Commercial Companies Law and introducing major structural and governance enhancements for mainland companies. Some of the key changes include the ability for limited liability companies (LLCs) to issue multiple classes of shares, the statutory recognition of drag‑along and tag‑along rights, formal legal mechanisms for company migration (redomiciliation) between mainland and free zones, the introduction of non‑profit companies as a recognized legal form, confirmation that all UAE‑incorporated companies—including free zone and financial free zone entities—carry UAE nationality. These reforms significantly modernize the legal framework and align the UAE company law with international best practices.

In December 2025, the UAE Federal Tax Authority (FTA) released its advance pricing agreement (APA) guide, establishing a formal framework for agreeing arm’s length pricing methodologies on a prospective basis. The FTA rolled out the program in phases, starting with unilateral APAs (UAPAs) for domestic transactions from December 2025, followed by cross-border UAPAs in 2026 and expansion to bilateral and multilateral APAs over time. This framework is a significant addition to the UAE’s transfer pricing landscape, providing greater pricing certainty and helping mitigate double taxation risks in line with OECD best practices.

The UAE continues to reinforce its position as a regional and global center for innovation through the introduction of a comprehensive research and development (R&D) tax credit regime. As part of this initiative, the Ministry of Finance has issued Cabinet Decision No. 215 of 2025 and Ministerial Decision No. 24 of 2026, setting out a structured incentive framework aimed at encouraging private‑sector investment in research activities, the development of new technologies, and the creation of intellectual capital within the UAE.

In line with the OECD’s BEPS Pillar Two rules, the UAE has implemented a domestic minimum top-up tax (DMTT) applicable to financial years commencing on or after 1 January 2025. The rules effectively mean that in-scope companies—broadly, members of multinational enterprise (MNE) groups with consolidated revenues exceeding EUR750 million—are subject to a minimum effective tax rate of 15 percent.

Country overview

The UAE is a federation of seven emirates (Abu Dhabi, Ajman, Dubai, Fujairah, Ras Al Khaimah, Sharjah and Umm Al Quwain) located along the eastern side of the Arabian Peninsula. The UAE comprises approximately 71,023.6 square kilometers of land, including islands in the Arabian Gulf, in addition to 27,624.9 square kilometers of territorial water.

With a number of social, economic and environmental initiatives, the UAE strives to continue progressing on a variety of fronts, including trade, investment, communications, information technology, tourism and infrastructure, as well as human and social development.