Get Your Guide on Doing Business in the UAE

  • 4.4
    %

    GDP 2025 5.4% in 2026 (projected) as per CBUAE report

  • 100
    %

    ownership in most sectors across the mainland and freezones

  • #
    3

    in international trade and #22 in international investment

  • 50
    +

    freezones and mainland to establish your company

Nexdigm - Your Partner for UAE Entry

Market Research & Entry Strategy

Pre-investment
Advisory

Tax & Regulatory Advisory

Company Setups &
Bank Accounts

Transaction Advisory & Support

Talent, VISA/Payroll
and PRO Services

Location Planning & Land Procurement

License Renewals,
& Secretarial Compliance

Greenfield & Brownfield

Finance
& Accounting

Project Management

Tax, and Regulatory
Advisory & Compliance

Vendor Selection & Onboarding Support

Transaction
Advisory

Liaison with Government to Avail Incentives

Project
Management

Questions on your mind (FAQs)

The UAE is focused on economic diversification, moving beyond traditional oil reliance, and establishing itself as a pivotal global business hub.

  • Key Initiatives: The Dubai Economic Agenda (D33) aims to double the size of Dubai’s economy over the next decade and consolidate its position among the top three global cities, encompassing 100 transformational projects. The "We the UAE 2031" vision targets doubling Foreign Direct Investment (FDI) flows to AED 240 billion annually and tripling FDI stock by 2031.
  • Economic Strength: The GDP was estimated at USD 527.8 billion in 2024, with projections for 2025 suggesting an increase to USD 550.2 billion. FDI inflows reached USD 30.688 billion in 2023, positioning the UAE as the second-largest global recipient.
  • Competitive Advantages: These include a strategic location at the crossroads of Europe, Asia, and Africa, world-class infrastructure, a business-friendly ecosystem, and a lack of exchange control restrictions, enabling seamless cross-border trade and capital repatriation.

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.

  • Financial Free Zones: The Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) are notable exceptions, operating distinct common law jurisdictions based on English common law.
  • Dispute Resolution: Commercial disputes often rely on arbitration, governed by Federal Law No. 6 of 2018. The UAE is a signatory to the New York Convention (since 2006), ensuring the enforcement of foreign arbitral awards.

The Dubai Land Department (DLD) and the Real Estate Regulatory Agency (RERA) regulate the market. Recent regulatory updates in 2025 include:

  • Freehold Expansion: Freehold ownership zones were expanded to include areas like Dubai South, Al Wasl, and Meydan, allowing 100% foreign property ownership in these designated zones.
  • Rental Index: RERA replaced the traditional rental calculator with an AI-powered Smart Rental Index Calculator to provide real-time, data-driven rental benchmarks.
  • Rent Increase Caps: Increases are strictly regulated based on how far the current rent is below the market average, ranging from 0% (if less than 10% below market) up to 20% (if more than 40% below market).
  • Residency Linkage: Property investment of AED 750,000 qualifies for a 2-year investor visa, while AED 2 million or more qualifies for the 10-year Golden Visa.

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).

 

Testimonials

About Nexdigm

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

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