United Arab Emirates

01Economic Scale and Financial Flows

The United Arab Emirates is one of the most dynamically developing economies in the Middle East and a major international centre for business, finance, trade and logistics.

Despite its historical dependence on the oil and gas sector, the country's economic model is gradually diversifying through the development of tourism, real estate, financial services, technology, international trade and manufacturing.

The UAE is developing a diversified economy in which non-oil sectors account for the majority of economic activity. The scale of international trade and record foreign investment inflows strengthen the country's position as a global investment hub.

02Geoeconomic Position

The UAE occupies a strategic position at the intersection of trade routes connecting Europe, Asia and Africa, providing international companies with access to major regional markets.

Its developed system of ports, airports, free economic zones and international transport corridors plays a particularly important role.

• Access to the markets of the Middle East, Africa and South Asia.
• An extensive network of Comprehensive Economic Partnership Agreements (CEPAs).
• International maritime trade routes.
• Major regional aviation and logistics hubs.
• Specialised free economic zones.
• Currency stability supported by the UAE dirham's peg to the US dollar.

• China.
• India.
• Saudi Arabia.
• United States.
• Japan.
• European Union.

Since 2021, the UAE has actively expanded its CEPA network, concluding 38 agreements by August 2026, of which 18 had entered into force as of July 2026.

The UAE serves as an international trade and logistics platform connecting the markets of the Middle East, Asia, Africa and Europe.

03Key Growth Drivers

04Taxation and Investment Environment

The UAE offers a competitive tax system and extensive opportunities for international entrepreneurship.

• Corporate income tax — 9% on taxable income exceeding AED 375,000.
• No personal income tax.
• 100% foreign ownership permitted for many mainland businesses.
• Special tax regime for eligible companies operating in free economic zones.
• Possibility of profit and capital repatriation.
• Double taxation avoidance agreements with numerous countries.

Qualifying Free Zone Persons (QFZPs) may benefit from a 0% corporate tax rate on qualifying income, subject to meeting the applicable conditions. Income that does not meet the qualifying criteria is taxed under the standard corporate tax rules.

Special minimum taxation provisions also apply to multinational enterprise groups falling within the scope of the OECD Pillar Two framework.

The UAE offers developed tax and corporate infrastructure for international business. However, the availability of tax incentives depends on the nature of the business activity, company structure, source of income and compliance with applicable legislation.

05Institutional Environment and Capital Protection

The UAE has a developed banking system, modern business infrastructure and specialised financial jurisdictions.

DIFC and ADGM are particularly important, as they operate their own legal frameworks based on English common law within their respective jurisdictions.

• Developed judicial and arbitration infrastructure.
• International banking institutions.
• Regulation of corporate and financial transactions.
• International commercial dispute resolution mechanisms.
• Developed licensing and compliance systems.
• The UAE dirham's peg to the US dollar.

According to the UAE Ministry of Finance, in 2025 the federal government's sovereign credit ratings were:

• S&P Global — AA (Stable).
• Moody's — Aa2 (Stable).
• Fitch Ratings — AA- (Stable).

The UAE offers international investors developed institutional and financial infrastructure. However, it is important to consider the differences between federal regulations, the laws of individual emirates and the regulations governing free economic zones.

06Investment Rationale: International Capital and Economic Diversification

The UAE is of interest to international investors due to the combination of strong FDI inflows, developed logistics, financial services, real estate and government programmes supporting economic diversification.

• GDP of approximately USD 517 billion.
• Economic growth of 6.2% in 2025.
• Non-oil GDP of AED 1.5 trillion.
• FDI inflows of USD 48.3 billion in 2025.
• Non-oil foreign trade worth AED 3.8 trillion.
• International financial centres DIFC and ADGM.
• Developed port and aviation infrastructure.
• A competitive taxation system.