GDP 2025 5.4% in 2026 (projected) as per CBUAE report
ownership in most sectors across the mainland and freezones
in international trade and #22 in international investment
freezones and mainland to establish your company
The UAE is focused on economic diversification, moving beyond traditional oil reliance, and establishing itself as a pivotal global business hub.
Corporate entities can be established in the Mainland (Onshore) or within a designated Free Zone (FZ).
| Feature | Mainland (Onshore) | Free Trade Zones (FZs) |
|---|---|---|
| Regulation | Regulated by the respective emirate's Department of Economic Development (DED). | Governed by their own regulatory authority and specific rules. |
| Foreign Ownership | 100% foreign ownership is permitted in most mainland sectors (over 1,000), eliminating the 51% local ownership requirement. | 100% foreign ownership is a standard feature and major incentive. |
| Operations Scope | Entities can operate across the entire country without jurisdictional restrictions. | Operations are generally restricted to within the free zone or internationally. Dual licensing may permit mainland presence subject to DED license. |
| Corporate Tax (CT) | Standard CT rates apply (9% on income exceeding AED 375,000). | Qualifying Free Zone Persons (QFZPs) benefit from a 0% CT rate on Qualifying Income. |
The UAE utilizes a hybrid legal system combining civil law principles with elements of Islamic Sharia.
The Dubai Land Department (DLD) and the Real Estate Regulatory Agency (RERA) regulate the market. Recent regulatory updates in 2025 include:
The UAE tax regime includes federal Corporate Tax, Value Added Tax (VAT), and various other levies.
| Tax Type | Rate | Key Details |
|---|---|---|
| Federal Corporate Tax (CT) | Standard rate: 9% on taxable income > AED 375,000. | Effective from June 1, 2023. Small business relief is available for revenue < AED 3 million. |
| Qualifying Free Zone CT | 0% on Qualifying Income | Requires adequate substance, audited financial statements, and compliance with the Arm’s Length Principle (ALP). |
| Value Added Tax (VAT) | 5% standard rate. | Applied on the supply of goods and services. Mandatory registration threshold is AED 375,000. |
| Excise Tax | 50% or 100%. | Levied on specific goods harmful to health or the environment (e.g., 50% on sweetened drinks, 100% on tobacco and energy drinks). |









Nexdigm is a global, independent professional services organization that helps businesses set up, operate, and expand in the United Arab Emirates (UAE); one of the world’s most dynamic, investor-friendly markets. With our multi-functional expertise and digitally driven Business and Professional services, we deliver customized solutions across UAE company formation, free zone and mainland business setup, corporate tax advisory, finance and accounting, payroll management, and regulatory compliance.
Our hands-on approach, combined with strategic insight, allows Nexdigm to help businesses navigate the complexities of doing business in the UAE market and achieve sustainable growth. We serve multinationals, regional entities, and family businesses across more than 50 countries with direct operations in the USA, Poland, the UAE, and India.
At Nexdigm, our clients’ success is at the heart of everything we do. We believe in working side by side with them, going beyond traditional advice to help turn ideas into results. By collaborating closely at every step, we drive innovation, boost efficiency, and support lasting growth within the UAE’s dynamic business landscape.
UAE Offices: DIFC | Dubai Mainland | Abu Dhabi