Free zones in Dubai are on track to boost their contribution to the emirate's gross domestic product to Dh250 billion ($68bn) by 2030, according to Sheikh Ahmed bin Saeed, chairman of the Dubai Free Zones Council.
The economic zones support the growth of existing industries and have created new specialised and dynamic sectors including green, circular and knowledge-based economies, in line with future economic opportunities, Sheikh Ahmed said during the council's meeting, state news agency Wam reported.
Free zones enhance diversified economics and promote sustainability and growth, strengthening Dubai's appeal as a preferred investment destination, Sheikh Ahmed said.
Free zones – also known as free trade zones – are economic areas where business owners have 100 per cent ownership of their organisations and tend to have preferential tax schemes.
The UAE has been investing heavily in developing its infrastructure and implementing policy reforms to attract more entrepreneurs and businesses to the country as it seeks to grow its non-oil sector.
The UAE Cabinet recently approved new regulations for the entry and residence of foreigners, including amendments to the golden residency programme, green residency, tourist visas and other special visas.
The contribution of the UAE’s non-oil sector to the country's total economic output rose to 72.3 per cent in 2021, the Federal Competitiveness and Statistics Centre said earlier this month.
The Dubai 2040 Urban Master Plan presents a framework to "advance the free zones experience and take it to new heights", allowing free zones to play a more substantial role in Dubai’s socio-economic development, Sheikh Ahmed said.
The comprehensive roadmap also boosts Dubai’s rank in key global indices for competitiveness, innovation and ease of doing business.
During the meeting, the council explored the addition of 80 new services to the Invest in Dubai platform, including connectivity through a single portal that can be used by start-ups, investors and international companies for tax registration services, designing business plans and evaluating feasibility, among others.
The council also explored opportunities for companies to move between free zones. Members called for a framework that unifies the fee structure, the report said.
They also called for a comprehensive study in collaboration with Digital Dubai to assess the economic impact of free zones' contribution.
Last December, Sheikh Ahmed, in his capacity as chairman of the Dubai Integrated Economic Zones Authority, approved the organisation's new structure, aimed at enhancing free zone integration in the emirate and providing comprehensive solutions to investors and free zone companies.
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
War 2
Director: Ayan Mukerji
Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana
Rating: 2/5
Classification of skills
A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation.
A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.
The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
Jeff Buckley: From Hallelujah To The Last Goodbye
By Dave Lory with Jim Irvin
More on animal trafficking
More on Quran memorisation:
Founders: Ines Mena, Claudia Ribas, Simona Agolini, Nourhan Hassan and Therese Hundt
Date started: January 2017, app launched November 2017
Based: Dubai, UAE
Sector: Private/Retail/Leisure
Number of Employees: 18 employees, including full-time and flexible workers
Funding stage and size: Seed round completed Q4 2019 - $1m raised
Funders: Oman Technology Fund, 500 Startups, Vision Ventures, Seedstars, Mindshift Capital, Delta Partners Ventures, with support from the OQAL Angel Investor Network and UAE Business Angels
