The UAE has broad diplomatic and commercial relations with most countries and members of the United Nations. It plays a significant role in OPEC, and is one of the founding members of the Gulf Cooperation Council (GCC). The UAE is a member of the United Nations and several of its specialized agencies (ICAO, ILO, UPU, WHO, WIPO), as well as the World Bank, IMF, Arab League, Organisation of Islamic Cooperation (OIC), and the Non-Aligned Movement. Also, it is an observer in the Organisation Internationale de la Francophonie. Most countries have diplomatic missions in the capital Abu Dhabi with most consulates being in UAE's largest city, Dubai.
The UAE has developed from a juxtaposition of Bedouin tribes to one of the world's most wealthy states in only about 50 years. Economic growth has been impressive and steady throughout the history of this young confederation of emirates with brief periods of recessions only, e.g. in the global financial and economic crisis years 2008–09, and a couple of more mixed years starting in 2015 and persisting until 2019. Between 2000 and 2018, average real gross domestic product (GDP) growth was at close to 4%. It is the second largest economy in the GCC (after Saudi Arabia), with a nominal gross domestic product (GDP) of US$414.2 billion, and a real GDP of 392.8 billion constant 2010 USD in 2018. Since its independence in 1971, the UAE's economy has grown by nearly 231 times to 1.45 trillion AED in 2013. The non-oil trade has grown to 1.2 trillion AED, a growth by around 28 times from 1981 to 2012. Backed by the world's seventh-largest oil deposits, and thanks to considerate investments combined with decided economic liberalism and firm Government control, the UAE has seen their real GDP more than triple in the last four decades. Nowadays the UAE is one of the world's richest countries, with GDP per capita almost 80% higher than OECD average.
Emirati foreign relations are motivated to a large extent by identity and relationship to the Arab world. The United Arab Emirates has strong ties with Bahrain, China, Egypt, France, India, Jordan, Pakistan Russia, Saudi Arabia and the United States.
In orderfor a foreign investor to do businessin UAE, company can be established either in Mainland or Free Zones. Each of the seven emirates consist of Mainland as well as Free Zones jurisdiction.
The Central Bank of the UAE was established in 1980. As in many other states of the world, its main task is to prevent the economy of the country from falling. Central Bank is also controls prices and inflation and is in charge of the government’s gold funds.
Concerning other types of banks in the UAE, there are four main kinds, namely: Commercial banks, Merchants/investment banks, Islamic banks, Industrial banks.
Apart from the locally registered banks, there are 28 foreign banks In the UAE banking system with 115 branches in the UAE. The taxation system for local banks is a little different than for foreign branches. Local banks are exempt from taxes while foreign ones have to pay 20% tax on their profit.
There is currently no federal tax code in the UAE, although most, if not all, of the seven Emirates have issued local tax decrees.
The Emirati-level decrees are usually not very detailed, but prescribe the basis for taxation in the relevant Emirate, including, inter alia, definitions of a taxable person and taxable income. However, in practice, the decrees are currently only enforced in respect of oil and gas exploration and production companies, and certain petrochemical companies, under specific government concession agreements (see ‘Taxation of oil and gas companies’ below).
Branches of foreign banks are subject to corporate income tax under separate banking decrees in certain Emirates. Whilst corporate taxes are levied on companies operating in certain industries in the UAE, entities registered in the Free Zones are generally not liable to corporate income tax for a specific period depending on the Free Zone, i.e. Free Zone entities are typically offered a 15-50 year ‘tax holiday’.
The UAE offers businesses a strong enabling environment: stable political and macroeconomic conditions, a future-oriented Government, good general infrastructure and ICT infrastructure. Moreover, the country has made continuous and convincing improvements to its regulatory environment. The UAE are in the top ranks of several other global indices, such as the World Economic Forum's (WEF) Global Competitiveness Index (GCI), the World Happiness Report (WHR) and 33rd in the Global Innovation Index in 2021. The Economist Intelligence Unit (EIU), for example, assigns the UAE rank two regionally in terms of business environment and 22 worldwide.
The weaker points remain the level of education across the UAE population, limitations in the financial and labour markets, barriers to trade and some regulations that hinder business dynamism. The major challenge for the country, though, remains translating investments and strong enabling conditions into knowledge, innovation and creative outputs.
Intellectual property rights (IPRs) in the UAE are protected on a federal level. However, the enforcement of these rights is carried out a local level and therefore separately handled by the respective authorities in each Emirate.
The main IPRs recognized in the UAE are patents, trademarks, copyrights, industrial designs, trade names, trade secrets, domain names and plant variety rights. Some of these IPRs are protected through registration with the competent authorities in the UAE.
The UAE has a federal court system. There are three main branches within the court structure: civil, criminal and Sharia law. The UAE's judicial system is derived from the civil law system and Sharia law. The court system consists of civil courts and Sharia courts. UAE's criminal and civil courts apply elements of Sharia law, codified into its criminal code and family law.
Our law firm VLO provides legal services for corporate and private clients in the UAE. These services include mergers and acquisitions, business and debt restructuring, tax and tax disputes, corporate disputes, investments, bankruptcy, litigation and arbitration.
If you have questions, please us right now.
E-mail: vlolawfirm@gmail.com
The UAE has developed from a juxtaposition of Bedouin tribes to one of the world's most wealthy states in only about 50 years. Economic growth has been impressive and steady throughout the history of this young confederation of emirates with brief periods of recessions only, e.g. in the global financial and economic crisis years 2008–09, and a couple of more mixed years starting in 2015 and persisting until 2019. Between 2000 and 2018, average real gross domestic product (GDP) growth was at close to 4%. It is the second largest economy in the GCC (after Saudi Arabia), with a nominal gross domestic product (GDP) of US$414.2 billion, and a real GDP of 392.8 billion constant 2010 USD in 2018. Since its independence in 1971, the UAE's economy has grown by nearly 231 times to 1.45 trillion AED in 2013. The non-oil trade has grown to 1.2 trillion AED, a growth by around 28 times from 1981 to 2012. Backed by the world's seventh-largest oil deposits, and thanks to considerate investments combined with decided economic liberalism and firm Government control, the UAE has seen their real GDP more than triple in the last four decades. Nowadays the UAE is one of the world's richest countries, with GDP per capita almost 80% higher than OECD average.
Emirati foreign relations are motivated to a large extent by identity and relationship to the Arab world. The United Arab Emirates has strong ties with Bahrain, China, Egypt, France, India, Jordan, Pakistan Russia, Saudi Arabia and the United States.
In orderfor a foreign investor to do businessin UAE, company can be established either in Mainland or Free Zones. Each of the seven emirates consist of Mainland as well as Free Zones jurisdiction.
The Central Bank of the UAE was established in 1980. As in many other states of the world, its main task is to prevent the economy of the country from falling. Central Bank is also controls prices and inflation and is in charge of the government’s gold funds.
Concerning other types of banks in the UAE, there are four main kinds, namely: Commercial banks, Merchants/investment banks, Islamic banks, Industrial banks.
Apart from the locally registered banks, there are 28 foreign banks In the UAE banking system with 115 branches in the UAE. The taxation system for local banks is a little different than for foreign branches. Local banks are exempt from taxes while foreign ones have to pay 20% tax on their profit.
There is currently no federal tax code in the UAE, although most, if not all, of the seven Emirates have issued local tax decrees.
The Emirati-level decrees are usually not very detailed, but prescribe the basis for taxation in the relevant Emirate, including, inter alia, definitions of a taxable person and taxable income. However, in practice, the decrees are currently only enforced in respect of oil and gas exploration and production companies, and certain petrochemical companies, under specific government concession agreements (see ‘Taxation of oil and gas companies’ below).
Branches of foreign banks are subject to corporate income tax under separate banking decrees in certain Emirates. Whilst corporate taxes are levied on companies operating in certain industries in the UAE, entities registered in the Free Zones are generally not liable to corporate income tax for a specific period depending on the Free Zone, i.e. Free Zone entities are typically offered a 15-50 year ‘tax holiday’.
The UAE offers businesses a strong enabling environment: stable political and macroeconomic conditions, a future-oriented Government, good general infrastructure and ICT infrastructure. Moreover, the country has made continuous and convincing improvements to its regulatory environment. The UAE are in the top ranks of several other global indices, such as the World Economic Forum's (WEF) Global Competitiveness Index (GCI), the World Happiness Report (WHR) and 33rd in the Global Innovation Index in 2021. The Economist Intelligence Unit (EIU), for example, assigns the UAE rank two regionally in terms of business environment and 22 worldwide.
The weaker points remain the level of education across the UAE population, limitations in the financial and labour markets, barriers to trade and some regulations that hinder business dynamism. The major challenge for the country, though, remains translating investments and strong enabling conditions into knowledge, innovation and creative outputs.
Intellectual property rights (IPRs) in the UAE are protected on a federal level. However, the enforcement of these rights is carried out a local level and therefore separately handled by the respective authorities in each Emirate.
The main IPRs recognized in the UAE are patents, trademarks, copyrights, industrial designs, trade names, trade secrets, domain names and plant variety rights. Some of these IPRs are protected through registration with the competent authorities in the UAE.
The UAE has a federal court system. There are three main branches within the court structure: civil, criminal and Sharia law. The UAE's judicial system is derived from the civil law system and Sharia law. The court system consists of civil courts and Sharia courts. UAE's criminal and civil courts apply elements of Sharia law, codified into its criminal code and family law.
Our law firm VLO provides legal services for corporate and private clients in the UAE. These services include mergers and acquisitions, business and debt restructuring, tax and tax disputes, corporate disputes, investments, bankruptcy, litigation and arbitration.
If you have questions, please us right now.
E-mail: vlolawfirm@gmail.com
United Arab Emirates