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 are not included yet; see official statistics such as the World Bank.
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 VATconsistent
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 VATconsistent
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
- InvestmentUAE Ministry of EconomyForeign ownership and Commercial Companies Law · Accessed 2026-11-12
- TaxFederal Tax Authority (FTA)Corporate tax and VAT · Accessed 2026-11-12
- Financial regulationCentral Bank of the UAEBanking and financial regulation · Accessed 2026-11-12
- LabourMinistry of Human Resources and Emiratisation (MOHRE)Labour and work permits · Accessed 2026-11-12
- CustomsFederal Authority for Identity, Citizenship, Customs & Port Security (ICP)Customs and residency · Accessed 2026-11-12
- LabourGeneral Pension and Social Security Authority (GPSSA)Pensions and social security · Accessed 2026-11-12
- LegislationUAE Government Portal (u.ae)Data protection laws · Accessed 2026-11-12