Doing Business in the UAE in 2025: A Guide for Investors & Entrepreneurs

Navigating Future Opportunities, Regulatory Shifts, and Sustainable Growth

Why Choose the UAE for Business?

The UAE remains one of the most attractive global jurisdictions for business due to:

A stable macroeconomic outlook (2025 GDP growth projected at 4.5%–5.6%)

Over 74% of GDP generated by the non-oil economy

Strategic location between Asia, Europe, and Africa

Favorable tax environment: 0%–9% corporate tax, 0% personal income tax

Full foreign ownership allowed in many sectors

Business Setup Options: What to Choose?

1. Mainland (Onshore company) Licensed by local Department of Economic Development (DED) Operate across the UAE and bid for government contracts 100% foreign ownership allowed in many activities Best for businesses with local clients or physical operations

2. Free Zone Company 100% foreign ownership Attractive tax benefits Remote setup available Ideal for e-commerce, freelancers, IT, logistics, and trading

3. Offshore Company Great for holding assets and international trading No UAE visas or physical office Used for tax planning and corporate structuring

UAE Tax Overview

Corporate Tax: 0% (up to AED 375,000) / 9% aboveVAT (Value-Added Tax): 5% standard, 0% for exports

Personal Income Tax: NoneCustoms Duties: 0% in Free Zones / 5% in Mainland

CEPA Agreements & Global Trade

The UAE is rapidly expanding its network of Comprehensive Economic

Partnership Agreements (CEPA) with countries like India, Israel, and Turkey.

A Free Trade Agreement (FTA) with the Eurasian Economic Union (EAEU), including Russia, is expected to be signed in 2025, creating new trade and investment opportunities

Cultural & Business Etiquette

Islamic values: respect for religious customs and public holidays

Language: English is used in business, Arabic is the official language

Trust-based relationships: personal meetings often preferred

Dress code: business formal; respect for traditional attire is key

Useful Resources

· UAE Ministry of Economy

· Federal Tax Authority

· Dubai Department of Economy & Tourism (DED)

· Dubai Chamber of Commerce

Ready to start your UAE business?

Book a free consultation with BalancePro — we’ll help you choose the right jurisdiction and handle the entire setup process.