The Government of the United Arab Emirates (UAE) is pursuing economic diversification and regulatory reforms to promote private sector development; reduce dependence on hydrocarbon revenues; and build a knowledge economy buttressed by advanced technology and clean energy.

The UAE serves as a major trade and investment hub for the Middle East and North Africa, as well as increasingly for South Asia, Central Asia, and Sub-Saharan Africa. Multinational companies cite the UAE’s political and economic stability, excellent infrastructure, developed capital markets, and a perceived absence of systemic corruption as factors contributing to the UAE’s attractiveness to foreign investors. The UAE seeks to attract foreign direct investment (FDI) by i) not charging taxes or making restrictions on the repatriation of capital; ii) allowing relatively free movement into the country of labor and low barriers to entry (effective tariffs are five percent for most goods); and iii) offering FDI incentives.

In January 2023, the UAE Federal Cabinet set out the five priorities of the UAE for 2023, focusing on strengthening national identity, advocating for the environment and sustainability, strengthening the education sector, boosting Emiratization policies, and expanding economic partnerships across the globe.

The UAE has emerged as an attractive destination for both Russians and Ukrainians following Russia’s further invasion of Ukraine. Russians in particular have been a key customer segment supporting higher sales and rental prices in Dubai’s property market. Russian and Ukrainian firms have also moved to the UAE since the invasion. The UAE prohibited exports of Indian-origin wheat for several months in 2022 to protect against domestic food shortages, but otherwise has not suffered notable adverse economic impacts from Russia’s war on Ukraine. UAE inflation rates have been consistent, if not lower than, global inflation rates.

The UAE and the country’s seven constituent emirates have passed numerous initiatives, laws, and regulations to attract more foreign investment. Recent measures include visa reforms to attract and retain expatriate professionals, a drive to create new international economic partnerships, major investments in critical industries, and policies to encourage Emirati entrepreneurship and labor force participation. These economic development projects offer both challenges and opportunities for foreign investors in the coming years. In January 2022, the UAE changed its work week for government bodies from Sunday to Thursday to Monday to Thursday with a half day on Friday in order to more closely align with world markets. To reinforce the UAE’s position as an attractive destination for expatriate workers, the UAE updated the personal status laws for all non-Muslim foreigners in December 2022 to align regulations relating to civil marriage, divorce, and child custody with Western legal frameworks.

Additionally, the UAE approved a comprehensive reform of the national legal system which, among other aims, developed the legal frameworks around data privacy, investment, regulation and legal protection of industrial property, copyrights, trademarks, and residency. The first-ever federal data protection law regulates how personal data are processed across the UAE, with separate laws on government, financial, and healthcare data to follow. The 2020 Commercial Companies law removes restrictions to facilitate further mergers and acquisition activity. The federal trademark law further expands the scope of legal protection for companies’ trademarks, products, innovations, and trade names by protecting non-traditional patterns of trademarks. The UAE introduced Federal Law No (3) of 2022, on regulating commercial agencies, which reforms a pillar of the UAE economic model by permitting international companies to operate in many sectors without the requirement for a local UAE partner. U.S. companies broadly consider these legal reforms to be positive, but investors will need to carefully consider how these changes might specifically affect their operations.

The UAE issued in December 2022 the Corporate Tax Law on business profits starting from June 1, 2023, as part of its membership in the OECD Inclusive Framework on Base Erosion and Profit Shifting. The new tax regime will impose a standard rate of nine percent on taxable profits exceeding $102,000. The law represents a complete change to the UAE tax landscape, affecting all businesses, including free zone entities. The law will include targeted exemptions for state-owned companies, extractive industries, pension funds, and investment funds. A zero rate will apply to qualifying income made in free trade zones and to tax withholding. Qualifying income has not been defined by the UAE, as of April 12, 2023.

The UAE announced in October 2021 that it would pursue net zero greenhouse gas emissions by 2050, to include an investment of $163 billion in renewable energy.

For more information, please refer to: https://www.state.gov/reports/2023-investment-climate-statements/uae/

September 30, Chinese on-demand service company Meituan has launched its international food delivery brand, Keeta, in Dubai, marking its entry into the United Arab Emirates and its third new market in the Middle East in just 40 days. The expansion follows Keeta's rollout in Qatar in August and Kuwait earlier this month. The UAE becomes Keeta's fourth hub in the Gulf, after Saudi Arabia in September 2024.

September 18, The United Arab Emirates' economy is expected to grow 4.9% in 2025, up from an earlier forecast of 4.4%, due to higher oil production and strong growth in the non-hydrocarbon sector, the central bank said.  

September 10, Saudi Arabia and the UAE are the top investment destinations for Chinese companies in the Middle East, attracting 84% and 79% of surveyed companies, respectively, PwC said in its latest survey. The Kingdom has emerged as one of the leading choices for future expansion over the next three to five years, driven by its rapid economic transformation and market scale.

September 7,  The contribution of the non-oil sector in the UAE’s GDP reached a new record high of 77.3% for the first time in the country's history in the first quarter of 2025, according to preliminary estimates issued by the Federal Competitiveness and Statistics Center.    

August 25, The UAE and Saudi Arabia are among the top three artificial intelligence superpowers in the world, a report by a US data center company has found. The US led the rankings, followed by the UAE and then Saudi Arabia. The Gulf states placed ahead of South Korea, France, India, China, the UK, Finland and Germany in the analysis.

August 21, The UAE, through the Dubai Free Zones Council, has introduced the UAE One Freezone Passport, a reform designed to simplify operations for companies across the emirate’s free zones. The initiative allows businesses to hold a single license while accessing facilities and benefits in multiple free zones.

August 18, JINGDONG is pleased to announce the opening of its new warehouse in Dubai. The facility represents JD.com’s first asset investment in the country, made through its infrastructure investment and management platform, JINGDONG Property, and is operated by JINGDONG Logistics.

July 31, An air route linking the eastern Chinese city of Hangzhou and Dubai, a city in the United Arab Emirates was launched, marking the official introduction of Emirates, one of the world's leading airlines, to Hangzhou Xiaoshan International Airport.  

July 30, The UAE's non-oil foreign trade rose by 24% annually in the first six months of 2025, bucking the global trend as the Emirates continues to diversify its economy and forge trade deals across continents.

July 16, A company based in the United Arab Emirates, has signed a memorandum of understanding with Chinese electric vertical take-off and landing (eVTOL) manufacturer. The agreement covers the purchase of 350 E20 eVTOL aircraft, with a total estimated value of US$1 billion, making it the largest pre-order for eVTOLs in China to date. 

June 24        The UAE retail sector is on track to grow at a compounded annual growth rate (CAGR) of 5.4% through 2028, as shopping malls across the country transform into integrated lifestyle destinations blending retail, dining, leisure, wellness, and technology.

June 20        The UAE attracted $45.6bn in foreign direct investment (FDI) in 2024, ranking 10th globally and accounting for 37% of all inbound investment into the region, according to the UN Conference on Trade and Development's World Investment Report 2025.

June 16        The United Arab Emirates recorded a 4% real GDP growth in 2024, reaching 1.77 trillion dirhams (about 482 billion US dollars), fueled primarily by robust expansion in non-oil sectors. 

June 2          Over the past five years, the UAE and KSA markets region have seen a dramatic shift toward online shopping. Around one third of consumers now use ecommerce as a mainstream channel, while their appetite to shop online on a daily basis is now double what it was in 2020. 

May 20           The UAE’s travel and tourism sector is projected to contribute approximately $72.2 billion to the national economy in 2025, representing nearly 13% of the country’s Gross Domestic Product, according to the World Travel & Tourism Council (WTTC).

May 16        WeRide, a global leader in autonomous driving technology announced the launch of fully driverless Robotaxi trial operations in Abu Dhabi – the first deployment of its kind in the Middle East. 

May 11           Disney's announcement last week that its newest theme park will be in Abu Dhabi offers further confirmation of the status of the United Arab Emirates as a global consumer crossroads located in the Middle East.

May 1           The Abu Dhabi economy will grow by 4.2% in 2025 and accelerate to 5.8% in 2026, according to International Monetary Fund (lMF) forecasts. It also said Dubai's economy is projected to expand by 3.3% in 2025 increasing to 3.5% in 2026.

April 23, UAE has been reported to have further extended the period of visa-free stay for Chinese citizens. The adjusted policy allows anyone with an ordinary Chinese passport that is valid for 6 months or more to enter the UAE visa-free. 

April 22, The International Monetary Fund (IMF) projected higher growth for the UAE economy for 2026 at 5% compared to 4 per cent for this year. The UAE will be the fastest-growing economy among the Gulf Cooperation Council (GCC) countries this year and second fastest in 2026. 

April 21, The United Arab Emirates recorded total foreign trade of AED5.23 trillion ($1.42 trillion) in 2024, marking a remarkable 49% increase from AED3.5 trillion ($952.9 billion) in 2021. The surge cements the UAE's status as the top trade hub in the Middle East and Africa and among the world's top 20 trade centers for goods and services.

March 26         The Central Bank of the UAE stated that due to the strong performance of the tourism, transportation, financial and insurance services, construction and real estate, and communication industries, the UAE's GDP increased by 3.9% in 2024, and it is the second - largest economy in the Arab world.

March 6          The UAE has solidified its position as one of the world's most preferred investment destinations, successfully attracting foreign direct investments that have boosted its cumulative balance. In 2024, the UAE issued 200,000 new economic licences across various economic activities, with more than 1.1 million companies and economic institutions operating in its markets.     

February 27, Minister of Economy, said that the financial technology (Fintech) sector continues to power growth, contributing 8.7% to the UAE's Gross Domestic Product (GDP).

February 13, The UAE began mapping air corridors and developing a regulatory framework for piloted and autonomous flying taxis and cargo drones, it was announced at the World Governments Summit. Aerial corridors and regulations are set to be defined within the next 20 months.  

February 6, In 2024, the non-oil foreign trade volume of UAE reached a record high of 2.997 trillion dirhams, showing a year-on-year increase of 14.6%. The main imported goods include gold, mobile phones, petroleum, automobiles, jewelry, diamonds and computers.

January 21        The UAE has ranked first among Arab countries in attracting investments in the car sales sector for 2024, according to a report by the Arab Investment and Export Credit Guarantee Corporation. The report revealed that the UAE accounted for 38 per cent of the region’s imports of road vehicles and their components. Saudi Arabia followed with 23 per cent. 

January 20         The UAE has topped the Arab list as the best and most attractive destination for investment and business in auto sales activity for 2024. 

January 6          Non-oil activity hit a nine-month high in the UAE in December. The country logged a 55.4 rating for the month in S&P's global purchasing managers' index (PMI) in the non-oil economy, up from 54.2 in November.