Starting March 1, the holy month of Ramadan for Muslims will begin in the UAE. In connection with this, the working hours for government employees have been adjusted for this period:

• Monday to Thursday: 9:00 AM to 2:30 PM;
• Friday: 9:00 AM to 12:00 PM. These changes will not apply to employees whose work requires a different schedule, and staff from ministries and federal authorities may use their approved work schedules during Ramadan, as long as they comply with working hour limits. If you plan to visit the UAE for work during the holy month, make sure to take these changes into account. Also, remember the rules of behavior during Ramadan: do not display aggressive behavior, refrain from listening to music and dancing in public places, avoid speaking

The authorities of the Emirate of Sharjah have announced the introduction of a special corporate tax of 20% for companies engaged in the extraction, transportation, or processing of raw materials or natural resources (oil, metals, minerals, and construction materials).

The corresponding law has already been adopted. According to it, extractive companies will be subject to a 20% tax on the taxable base in accordance with the mechanisms and schedules established in agreements between the Sharjah Oil Department and the respective company.

The taxable base for companies engaged in the extraction of natural resources is calculated based on the company’s total share of the value of extracted oil and gas, according to a formula that distributes the total royalty and other agreed payments between the Oil Department and the company.

All amounts related to royalties, bonuses, and annual rent for any concession operated by extractive companies will be determined in accordance with the agreement signed between the Oil Department and these companies.

Corporate Tax for Non-Extractive Companies Working with Natural Resources

Companies engaged in non-extractive activities are subject to a 20% tax on the taxable base for each financial year.

The taxable base for such companies is calculated based on the company’s net taxable profits under the provisions of this law, with the following adjustments:

a) Asset depreciation may be deducted from the taxable base, with non-current asset depreciation calculated at a rate of 20% per year. If a company applies international financial reporting standards that alter depreciation accounting methods, it may deduct depreciation amounts according to the rates specified in financial statements, provided that the finance department approves this during the audit and ensures that the intent is not to reduce profits.

b) Tax losses may be deducted from the taxable base for subsequent tax periods. Additionally, tax losses may be carried forward to unspecified future periods.

Tax Compliance and Penalties

The payment of tax is a prerequisite for renewing concession rights or a commercial license in Sharjah. Companies subject to taxation under the new law are required to maintain records and supporting documents to ensure the accuracy of the financial statements or any other tax-related documents for a period of seven years from the date of issuance.

If the emirate’s finance department determines that a company has intentionally committed financial violations for the purpose of tax evasion, a penalty of 5% of the total due tax amount will be imposed on the company.

The United Arab Emirates (UAE) has launched the first phase of the Blue Visa system – a 10-year residency visa designed for individuals contributing to environmental protection and sustainable development.

The UAE Ministry of Climate Change and Environment, in collaboration with the Federal Authority for Identity, Citizenship, Customs, and Ports Security (ICP), announced this initiative during the World Governments Summit, which is currently taking place in Dubai.

In the initial phase, 20 sustainability leaders and innovators will be granted the Blue Visa.

This visa targets individuals who have made significant contributions to environmental protection, including members of international organizations, representatives of non-governmental groups, corporate leaders, global award winners, and researchers.

Eligible individuals can apply directly through ICP or be nominated by UAE authorities.

According to the Global 500 Brand ranking, presented at the Economic Forum in Davos, the Emirati company e& has been recognized as the “World’s Fastest-Growing Brand.” The company’s brand value has increased eightfold compared to last year, reaching a record $15.3 billion for e& as a standalone brand.

Additionally, the telecommunications company e& has entered the TOP 10 most valuable telecom brands in the world, according to the Global 500 Brand 2025 ranking.

The UAE’s National Oil Company – Adnoc also performed well in the ranking. In this year’s edition, Adnoc was named the world’s fastest-growing energy brand, with its value rising by 25% over the year to $19 billion. Currently, this brand is the second most valuable in the region.

Ivanna Pylypyuk, the founder of Parus Corporate Services, shared her insights on how recent legislative changes, including the introduction of corporate tax, have impacted business in the UAE. Why this has only increased the attractiveness of doing business, the advantages of this step, and much more are covered in this article.

The UAE is no longer a tax-free jurisdiction for businesses. How has this changed doing business in the country?

The introduction of corporate tax has undoubtedly changed the business environment. Companies are now required to pay a 9% corporate tax on profits, which has necessitated the adaptation of business processes and improvements in financial management. Of course, this represents an increased burden for businesses and demands greater attention. However, the tax introduction also has its positive sides: the business environment has become more transparent and predictable, increasing the UAE’s attractiveness in the eyes of international investors. Among large corporations, the UAE’s reputation has become more stable and raises fewer questions.

Additionally, the extra tax revenues will help the government diversify the economy and reduce its dependence on oil revenues, contributing to sustainable economic growth. Another significant achievement is that the Financial Action Task Force (FATF) has added the UAE to its whitelist of countries. This is largely thanks to the introduction of corporate tax and the completion of standardization processes related to anti-money laundering (AML) screening. As a result, doing business in the UAE is safe from every perspective and fully aligned with international standards.

How critical is the current tax burden in the UAE for businesses?

The current tax burden in the UAE remains one of the lowest in the world. The corporate tax rate is just 9%, which is significantly lower than in many other countries, and this factor does not put substantial pressure on companies. The UAE offers special tax regimes for small businesses (Small Business Relief) and incentives for certain free zones. Offshore entities are still exempt from taxation, allowing them to be used for specific transactions.

For most businesses, the tax rate is not critical and allows companies to maintain high competitiveness. Of course, attention must be paid to company administration, as it is necessary to hire accountants and resolve outstanding compliance issues from previous periods.

Who will find the UAE an optimal choice for building a corporate structure? What types of activities will thrive in the UAE in 2024?

The UAE is particularly attractive now for international companies in sectors such as technology, finance, logistics, and e-commerce. For tech companies, the UAE offers advanced infrastructure and government support for innovation. Logistics companies can benefit from the country’s strategic location, while financial and fintech companies find a favorable ecosystem for growth.

Additionally, companies involved in international trade will also benefit from advantageous conditions. The jurisdiction is appealing for conducting real business and relocation, as there is no personal income tax in the UAE, which makes it possible to attract top talent from around the world.

However, the UAE is not a jurisdiction for everyone. Success here is achieved by companies with strong business models, whether they are large corporations or startups.

You have been living in Dubai for several years, during a time of significant legislative changes, especially regarding corporate taxes. Do you feel these changes? How has the UAE’s business climate evolved compared to, say, 2021?

Since the introduction of corporate tax in the UAE, the business climate has become more structured and transparent. Companies are paying more attention to tax planning and compliance with legislative requirements. This has improved corporate governance and enhanced the UAE’s reputation as a stable and predictable place for doing business.

Compared to 2021, the current business environment is more organized and open to international investors. The UAE remains a perpetual transit hub for capital, talent, and business. It is a highly competitive environment that attracts international companies.

What trends do you observe in the UAE? Where is the non-resident business sector headed?

The UAE continues to diversify its economy and actively develop sectors unrelated to oil. Particular attention is being paid to technology, fintech, sustainability, and renewable energy. Non-resident businesses are actively being attracted to the country thanks to low tax rates and favorable conditions for international operations.

At the same time, regulation and transparency are increasing, making the UAE attractive for sustainable, long-term business growth. The UAE aims to attract top talent and startups, as evidenced by its extensive long-term visa programs, including the well-known Golden Visas (10 years), Green Visas (5 years), and Blue Visas.

The government and each emirate have development plans offering excellent conditions for business relocation and family living. These include high levels of safety, exceptional service, cleanliness, comfortable living conditions, and the opportunity to earn a good income. This makes the UAE unique on the global stage.

As reported by the Federal Authority for Identity, Citizenship, Customs, and Port Security (ICP), over 236,000 foreign nationals took advantage of the opportunity to regularize their status. The visa amnesty program, which began on September 1, concluded on December 31, 2024.

Under the amnesty, individuals who violated UAE immigration laws were allowed to legalize their status in the country or leave without incurring penalties. As a result of the amnesty, more than 55,000 people received permission to exit the country.

Following the amnesty’s conclusion, authorities will resume inspections to identify visa violators, who will face deportation and inclusion in “blacklists.” Employers hiring individuals with invalid visas will be subject to fines ranging from 100,000 to 1 million dirhams.

The Global Property Guide portal has published a ranking of housing price growth for the second quarter of 2024, in which the Dubai market ranked second with 16.75%. The ranking accounted for the inflation rate in each country. A total of 74 jurisdictions participated in the analysis.

Top 10 rankings:

• Egypt +16.74%;
• UAE (Dubai) +16.75%;
• Montenegro +16.59%;
• Israel +12.94%;
• Georgia +12.49%;
• Bulgaria +12.30%;
• Poland (Warsaw) +11.61%;
• Hungary +9.86%;
• Russia +9.81%;
• Taiwan +9.21%.

The largest annual decrease in prices, adjusted for inflation, was recorded in the following countries:

• Argentina (Buenos Aires) -71.61%;
• Jamaica -16.12%;
• Turkey -14.69%;
• Hong Kong (China) -14.12%;
• Macau (China) -13.62%;
• Luxembourg -13.43%.