United Arab Emirates (UAE)
- Population:9.55 million
- Capital:Abu Dhabi
- Official language:Arabic (English is widely spoken)
- Currency:UAE Dirham (AED)
- Government:Federal constitutional monarchy
- Closed:Friday and Saturday
The UAE is a federation of seven emirates (Abu Dhabi, Ajman, Fujairah, Sharjah, Dubai, Umm al-Quwain, Ras al-Khaimah) formed in 1971. The country is known for its skyscrapers, artificial islands and luxury shopping malls. The UAE is one of the world's largest oil exporters, but is actively diversifying its economy, developing tourism, financial services and technology.
The UAE is located on the east coast of the Arabian Peninsula, the country borders Saudi Arabia and Oman, has access to the Persian Gulf and the Gulf of Oman. The strategic position of the UAE makes it an important trade and transport hub connecting Europe, Asia and Africa.
The richest emirate is Abu Dhabi, its territory contains the main oil reserves of about 94%. The Emirate of Dubai is the country’s leader in economic diversification, reducing dependence on the oil factor, attracting foreign investment, trade in services — tourism, information, transport and commercial.
The richest emirate is Abu Dhabi, its territory contains the main oil reserves of about 94%. The Emirate of Dubai is the country’s leader in economic diversification, reducing dependence on the oil factor, attracting foreign investment, trade in services — tourism, information, transport and commercial.
Economy
The UAE is an active participant in international economic relations. The country is a member of the key World Trade Organization, the Gulf Cooperation Council (GCC), the Arab League, the UN, and the Arab Free Trade Area (GAFTA).
The UAE economy is highly open and diversified. The main industries include the oil and gas sector, tourism, transport, logistics and various types of industry. Particular attention is paid to the development of free trade zones offering 100% foreign ownership and zero taxes, which attracts foreign investors. Despite the continued dependence on the oil sector, its share in GDP is gradually declining. The UAE’s GDP is $ 354 billion (35th place in the world), and GDP per capita is about $ 32,000 (26th place). These figures reflect the high level of economic development of the country and its significant role in the global economy.
The UAE economy is highly open and diversified. The main industries include the oil and gas sector, tourism, transport, logistics and various types of industry. Particular attention is paid to the development of free trade zones offering 100% foreign ownership and zero taxes, which attracts foreign investors. Despite the continued dependence on the oil sector, its share in GDP is gradually declining. The UAE’s GDP is $ 354 billion (35th place in the world), and GDP per capita is about $ 32,000 (26th place). These figures reflect the high level of economic development of the country and its significant role in the global economy.
Free Economic Zones
There are over 45 free economic zones (FEZ) in the UAE.
The most popular are:
The most popular are:
- Dubai Multi Commodities Centre (DMCC)For companies working with goods and raw materials1
- Jebel Ali Free Zone (JAFZA)For manufacturing and logistics companies2
- Dubai International Financial Centre (DIFC)For financial and legal firms3
- Abu Dhabi Global Market (ADGM)For financial institutions and investment companies4
- Dubai Silicon Oasis (DSO)For technology and innovation companies5
- Ras Al Khaimah Economic Zone (RAKEZ)Multi-purpose zone for various types of businesses6
- Sharjah Media City (Shams)For media and creative industries7
- International Free Zone Authority (IFZA)For startups, marketing and IT companies8
Other types of companies
1
Onshore companies: registered on the mainland UAE, require a local sponsor (51% local ownership)
2
Offshore companies: registered in special offshore zones, cannot operate within UAE
3
Foreign company branches: can be opened without a local partner
UAE tax system
The UAE is known for its favorable tax environment.
- Main aspects of local regulation:
- 0% income tax for individuals
- 0% corporate tax for most companies (9% tax for companies with profits above AED 375,000 per year introduced in 2023)
- 5% VAT (introduced in 2018)
- No capital gains tax and no dividend tax
Banks in the UAE
The banking sector makes a significant contribution to the economy of the Emirates. The UAE Banking Association includes 51 banks (24 local and 27 foreign).
- First Abu Dhabi BankThe largest in the UAE and one of the largest in the Middle East and North Africa region with total assets of over $203 billion, formed by the merger of National Bank of Abu Dhabi and First Gulf Bank
- Emirates NBDThe largest bank in the UAE, known for its innovative digital services
- Abu Dhabi Commercial BankSpecializes in corporate and retail banking
- Dubai Islamic BankThe largest Islamic bank in the UAE
- Mashreq BankKnown for its technological innovations and digital solutions
The UAE continues to hold a leading position as an innovative and economic center in the Middle East. The country attracts talent and the best professionals in various fields from all over the world, combining luxury and modern technology with a unique culture and traditions.
The country is actively developing non-resource sectors of the economy, striving to become a global hub for innovation and sustainable development. Ambitious projects such as the Mars exploration program and the development of renewable energy demonstrate the UAE's desire to lead in the technologies of the future.
The country is actively developing non-resource sectors of the economy, striving to become a global hub for innovation and sustainable development. Ambitious projects such as the Mars exploration program and the development of renewable energy demonstrate the UAE's desire to lead in the technologies of the future.