Facts in this handbook are compiled from official sources such as local authorities. Rules change — confirm the current position through the source links or with the authority before making major decisions.
01Overview
- Region
- Middle East
- Capital
- Abu Dhabi
- Currency
- AED
- Languages
- Arabic (official); English widely used
- ISO code
- AE / ARE
Jurisdictions
- UAE (federal) — Federal rules applying to mainland and free zones unless otherwise provided
- UAE mainland (each emirate) — Trade licences issued by each emirate's economic department
- UAE free zones — Each free zone authority has its own rules; activity is typically limited to the zone or abroad
China's direct investment
- China's 2025 FDI flow
- 26 USD 100m
- End-2025 FDI stock
- 124.7 USD 100m
- Flow rank
- #7 by flow
Source：2025 Statistical Bulletin of China's Outward Foreign Direct Investment ↗ · Flow is for calendar 2025; stock is at end-2025. Flow rank is from Table 8 (top 20); other countries from Annex Tables 1–2 (originally USD 10k, converted to USD 100m; one decimal, two below 1). A negative flow means divestment exceeded new investment that year.
Macro indicators such as GDP and population will be added from the World Bank in the data release (P1).
02Market Entry
Industries to study: Cross-border e-commerce & consumer brandsEVs, batteries & energy storageAI, SaaS & tech servicesTrade, logistics & warehousingInfrastructure, engineering & energyMedical devices & pharma
Foreign ownership
Whether 100% foreign ownership is generally allowed, and key exceptions. Allowed / conditional / not allowed / unverified.
100% foreign ownership allowed for most mainland commercial activities
- Applies to
- Activities of strategic impact are restricted; free zones generally allow 100% foreign ownership
- Jurisdiction
- UAE mainland (each emirate)
- Source
- UAE Ministry of Economy
- Cross-check
-
Outward Investment and Cooperation Guide: UAE (2025 ed.) consistent
Tax Guide for Chinese Residents Investing in UAE (2024 ed.) consistent
03Business Formation
Common legal entity
The company form most commonly used by foreign investors for a local operating entity.
Mainland LLC, or free zone company (FZE / FZCO / FZ-LLC)
- Applies to
- Mainland and free zone entities have different permitted activity scopes
- Jurisdiction
- UAE mainland (each emirate)
- Source
- UAE Ministry of Economy
Foreign ownership
Whether 100% foreign ownership is generally allowed, and key exceptions. Allowed / conditional / not allowed / unverified.
100% foreign ownership allowed for most mainland commercial activities
- Applies to
- Activities of strategic impact are restricted; free zones generally allow 100% foreign ownership
- Jurisdiction
- UAE mainland (each emirate)
- Source
- UAE Ministry of Economy
- Cross-check
-
Outward Investment and Cooperation Guide: UAE (2025 ed.) consistent
Tax Guide for Chinese Residents Investing in UAE (2024 ed.) consistent
Local director / representative
Whether a locally resident director, manager or representative is required.
Depends on emirate, activity and legal form
- Applies to
- Some activities may still require a local service agent or partner
- Jurisdiction
- UAE mainland (each emirate)
- Source
- UAE Ministry of Economy
Registration authority
Primary authority for company or commercial registration.
Each emirate's economic department (mainland) / each free zone authority
- Applies to
- Handled by the authority of the chosen location
- Jurisdiction
- UAE mainland (each emirate)
- Source
- UAE Ministry of Economy
Foreign-entity setup flow
Main approval stages for a foreign investor setting up an entity (no time estimates).
Choose mainland or free zone → define activities → name & initial approval → trade licence → office / visa quota
- Applies to
- Exact order varies by emirate and free zone
- Jurisdiction
- UAE mainland (each emirate)
- Source
- UAE Ministry of Economy
- Cross-check
-
Outward Investment and Cooperation Guide: UAE (2025 ed.) consistent
Local registered address
Whether a local registered address or premises is required at incorporation.
Premises matching the trade licence, or a free zone approved office solution
- Applies to
- Office size and type may affect visa quota
- Jurisdiction
- UAE mainland (each emirate)
- Source
- UAE Ministry of Economy
Beneficial ownership register
Whether companies must keep or file ultimate beneficial owner information.
Must keep a real beneficiary register and file it with the registrar
- Applies to
- Applies to mainland and most free zone companies; some entities exempt
- Jurisdiction
- UAE (federal)
- Source
- UAE Ministry of Economy
04Taxation
Headline corporate income tax
Statutory headline rate for ordinary companies, before incentives, exemptions, thresholds or special regimes. Always read with the conditions.
9%
- Applies to
- 9% on taxable income above AED 375,000, 0% below; qualifying free zone persons may get 0% on qualifying income
- Jurisdiction
- UAE (federal)
- Effective
- 2023-06-01
- Source
- Federal Tax Authority (FTA)
- Cross-check
-
Outward Investment and Cooperation Guide: UAE (2025 ed.) consistent
Tax Guide for Chinese Residents Investing in UAE (2024 ed.) consistent
Corporate tax and VAT consistent
Indirect tax (VAT / GST / SST)
Standard rate and type of VAT, GST or sales & service tax.
VAT 5%
- Applies to
- Mandatory registration when taxable supplies exceed AED 375,000
- Jurisdiction
- UAE (federal)
- Effective
- 2018-01-01
- Source
- Federal Tax Authority (FTA)
- Cross-check
-
Outward Investment and Cooperation Guide: UAE (2025 ed.) consistent
Corporate tax and VAT consistent
Tax authority
Authority responsible for corporate tax registration and filing.
Federal Tax Authority (FTA)
- Applies to
- Ordinary companies
- Jurisdiction
- UAE (federal)
- Source
- Federal Tax Authority (FTA)
Dividend withholding tax (non-residents)
General withholding on dividends paid to foreign shareholders, before treaty relief.
Withholding tax rate is 0%
- Applies to
- Under the Corporate Tax Law
- Jurisdiction
- UAE (federal)
- Source
- Federal Tax Authority (FTA)
- Cross-check
-
Tax Guide for Chinese Residents Investing in UAE (2024 ed.) consistent
Tax treaty with China
Whether a double taxation agreement with China is in force. Rates and conditions per the treaty text.
In force
- Applies to
- Rates, holding thresholds and conditions per the treaty text and STA publications
- Jurisdiction
- UAE (federal)
- Source
- State Taxation Administration (China)
05Banking & Payments
Banking & financial regulator
Primary regulator for banking and foreign exchange.
Central Bank of the UAE
- Applies to
- DIFC and ADGM financial free zones have their own regulators
- Jurisdiction
- UAE (federal)
- Source
- Central Bank of the UAE
Exchange controls
Whether general exchange controls or cross-border fund rules apply.
No general exchange controls
- Applies to
- AML and source-of-funds checks still apply
- Jurisdiction
- UAE (federal)
- Source
- Central Bank of the UAE
- Cross-check
-
Outward Investment and Cooperation Guide: UAE (2025 ed.) consistent
Tax Guide for Chinese Residents Investing in UAE (2024 ed.) consistent
06Employment
Labour & work permit authority
Authority for labour rules and foreign employee work permits.
MOHRE
- Applies to
- Free zone employees are usually processed by the free zone authority
- Jurisdiction
- UAE (federal)
- Source
- Ministry of Human Resources and Emiratisation (MOHRE)
Foreign employee work permit
Main permit types needed for foreign employees to work legally.
Work permit plus residence visa
- Applies to
- Mainland via MOHRE; free zones via the free zone authority
- Jurisdiction
- UAE (federal)
- Source
- Ministry of Human Resources and Emiratisation (MOHRE) Federal Authority for Identity, Citizenship, Customs & Port Security (ICP)
Social security contributions
Main employer social security schemes for local and foreign employees.
Pension for UAE nationals (GPSSA); end-of-service gratuity for expatriates
- Applies to
- GCC nationals have separate rules
- Jurisdiction
- UAE (federal)
- Source
- General Pension and Social Security Authority (GPSSA) Ministry of Human Resources and Emiratisation (MOHRE)
07Trade & Customs
Customs authority
Authority for import/export clearance and tariffs.
ICP and each emirate's customs
- Applies to
- e.g. Dubai Customs, Abu Dhabi Customs
- Jurisdiction
- UAE (federal)
- Source
- Federal Authority for Identity, Citizenship, Customs & Port Security (ICP)
Main free trade agreements
Main regional and bilateral trade agreements relevant to Chinese exporters (not exhaustive).
GCC customs union and several Comprehensive Economic Partnership Agreements (CEPAs)
- Applies to
- Partner countries per the Ministry of Economy
- Jurisdiction
- UAE (federal)
- Source
- UAE Ministry of Economy
08Investment & Manufacturing
Investment authority / agency
Body responsible for approving, registering or promoting foreign investment.
Ministry of Economy and emirate economic departments
- Applies to
- Ordinary companies
- Jurisdiction
- UAE (federal)
- Source
- UAE Ministry of Economy
Free zone / SEZ regime
Whether free zones or special economic zones operate under rules different from the mainland.
Many free zones, each with its own setup, licensing and activity rules
- Applies to
- Free zone companies usually need extra arrangements to trade on the mainland
- Jurisdiction
- UAE free zones
- Source
- UAE Ministry of Economy
09Digital & IP
Personal data protection law
Main law and regulator governing collection, use and cross-border transfer of personal data.
Federal Personal Data Protection Law (PDPL)
- Applies to
- DIFC and ADGM financial free zones have their own data protection laws
- Jurisdiction
- UAE (federal)
- Source
- UAE Government Portal (u.ae)
IP office
Authority for trademark and patent filing and registration.
Ministry of Economy (trademarks and patents)
- Applies to
- Trademark rights are territorial; register locally or designate via the Madrid System (check WIPO membership)
- Jurisdiction
- UAE (federal)
- Source
- UAE Ministry of Economy
10Compliance & Risk
New York Convention party
Whether the country is party to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which affects enforcing foreign arbitral awards locally.
Yes
- Applies to
- Foreign arbitral awards can be enforced under the Convention, subject to its limited refusal grounds
- Jurisdiction
- UAE (federal)
- Source
- UNCITRAL
Live risk monitoring
Geopolitical, conflict and trade-route risk events for Middle East, monitored by our sister site Global Risk Monitor.
View Middle East risk monitorHormuz / Red Sea shipping monitor
Global Risk Monitor · Geopolitical and trade-route risk monitoring
11Step-by-Step
Main setup steps in United Arab Emirates
- 1Choose mainland or free zone
- 2define activities
- 3name & initial approval
- 4trade licence
- 5office / visa quota
Exact order varies by emirate and free zone
General checklist (setting up a subsidiary)
- Decide model and jurisdiction
- Confirm licences
- Prepare documents
- Incorporate
- Register for tax
- Open bank account
- Obtain operating licences
- Start operations
Steps follow the setup-procedure fact on this page, without times or fees; rely on the official sources.
12Official Resources
Chinese official resources
Country materials from MOFCOM, the State Taxation Administration and China's overseas commercial offices
- MOFCOM country investment guideMOFCOM · PDF (Chinese)
- Country tax guide (STA)State Taxation Administration · PDF
- Commercial office中华人民共和国驻阿拉伯联合酋长国大使馆经济商务处
- MOFCOM going-global platformMOFCOM
- Compliance & security alertsMOFCOM platform
Official guides are long Chinese-language PDFs updated on the publishers' schedules. Our structured facts cite local authorities as primary sources; use these guides to cross-check.
Local authorities
- Investment UAE Ministry of Economy Foreign ownership and Commercial Companies Law · Accessed 2026-11-12
- Tax Federal Tax Authority (FTA) Corporate tax and VAT · Accessed 2026-11-12
- Financial regulation Central Bank of the UAE Banking and financial regulation · Accessed 2026-11-12
- Labour Ministry of Human Resources and Emiratisation (MOHRE) Labour and work permits · Accessed 2026-11-12
- Customs Federal Authority for Identity, Citizenship, Customs & Port Security (ICP) Customs and residency · Accessed 2026-11-12
- Labour General Pension and Social Security Authority (GPSSA) Pensions and social security · Accessed 2026-11-12
- Legislation UAE Government Portal (u.ae) Data protection laws · Accessed 2026-11-12