The UAE's non-oil foreign trade hit a record Dh3 trillion ($816.7 billion) last year − up 14.6 per cent year-on-year − as the country continues to diversify its economy and forges closer trade ties with countries around the world.
The Comprehensive Economic Partnership Agreements (Cepas) that the UAE has signed with various nations, from Colombia to Australia, have contributed Dh135 billion to its non-oil trade with partner nations, an increase of 42 per cent compared to the previous year, Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, said on Wednesday on X.
“While global trade grew by just 2 per cent in 2024, the UAE’s foreign trade expanded at seven times that rate, achieving an impressive 14.6 per cent growth,” he said.
“In 2021, we set a goal of reaching Dh4 trillion in annual foreign trade by 2031. By the end of 2024, we have already achieved 75 per cent of that target. At this pace, we will reach it years ahead of schedule.”
The UAE, which has set the target of achieving Dh4 trillion in foreign trade by 2031 as part of its national economic goals, is developing non-oil sectors and deepening ties with strategic trading partners to bolster long-term growth prospects. The UAE, the Arab world's second largest economy and the region's tourism and finance hub, has also invested heavily in trade and logistics infrastructure including modern marine ports and airport infrastructure to attract foreign investors.
Since 2021, the country has signed a series of Cepa deals with fast-growing economies in Asia, the Middle East and Africa, helping to boost the volume of non-oil foreign trade. These countries include India, Indonesia, Turkey, Israel, Cambodia and Georgia. This month, the UAE signed Cepa deals with New Zealand and Malaysia to deepen trade ties and improve market access, reduce or eliminate tariffs and ease customs procedures.
“The UAE is shaping its own economic future, focusing on progress over politics. Our priority is to strengthen economic partnerships with nations around the world – because prosperity is built on stability,” Sheikh Mohammed said.
“The UAE has a clear vision and bold ambitions. In this world, success belongs to those who know exactly where they are headed.”
Top trade partners
The UAE's non-oil trade with India grew by 20.5 per cent year-on-year to Dh240.3 billion and with Turkey by 11.5 per cent on an annual basis to Dh148.9 billion last year, Dr Thani Al Zeyoudi, Minister of State for Foreign Trade, said in a post on X on Wednesday.
“The positive impact of the UAE's Cepa programme is evident, with non-oil exports to partner nations reaching Dh135 billion in 2024, a 42.3 per cent increase over 2023 and accounting for 24 per cent of our total exports,” Dr Al Zeyoudi said.
“With our foreign trade growth outpacing global trends, and having achieved 75 per cent of our Vision 2031 target of Dh4 trillion, the UAE remains committed to greater trade and investment openness – and to solidifying our position as a gateway to opportunity.”
The UAE's non-oil trade with its top 10 global partners grew by 10 per cent, while trade with other countries expanded by 19.2 per cent year-on-year last year, according to Wam, the country's state news agency.
The rise was mainly driven by a surge in non-oil goods trade, which increased by 27.6 per cent to Dh561.2 billion last year, it said.
The share of exports in the UAE's non-oil foreign trade rose to 18.7 per cent last year, up from 16.8 per cent in 2023.
Among the UAE's top exports last year were gold, jewellery, cigarettes, petroleum-based oils, aluminium, copper wires, printed materials, perfumes and iron-based products, which together recorded a 40.8 per cent growth compared to 2023.
The value of re-exports rose 7.3 per cent year-on-year to more than Dh734 billion last year, it said in a report on Wednesday.
UAE imports amounted to Dh1.7 trillion last year, an increase of 14.2 per cent on the year before.
Imports from the UAE's top 10 trade partners rose by 6.7 per cent, while imports from other nations grew by 22.3 per cent.
Key imported goods included gold, mobile phones, petroleum oils, cars, jewellery, diamonds, and computers.
The UAE 's trade growth comes despite geopolitical headwinds. In November, the World Trade Organisation said that the volume of global goods trade is now expected to grow by 2.7 per cent in 2024 and 3 per cent in 2025, accompanied by world GDP growth at market exchange rates of 2.7 per cent in both years.
“Against a backdrop of geopolitical tensions and more frequent and serious climate change related crises, there is increasing evidence of inward-looking and unilateral trade policy decisions creating uncertainty for the world economy,” it said.
On the global stage, investors are now concerned that a trade war between the US and China may impact economic growth and global consumption.
Tales of Yusuf Tadros
Adel Esmat (translated by Mandy McClure)
Hoopoe
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
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Killing of Qassem Suleimani
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
COMPANY PROFILE
Founders: Sebastian Stefan, Sebastian Morar and Claudia Pacurar
Based: Dubai, UAE
Founded: 2014
Number of employees: 36
Sector: Logistics
Raised: $2.5 million
Investors: DP World, Prime Venture Partners and family offices in Saudi Arabia and the UAE
RESULT
Aston Villa 1
Samatta (41')
Manchester City 2
Aguero (20')
Rodri (30')
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
- Option 2: 50% across three years
- Option 3: 30% across five years
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Juliet, Naked
Dir: Jesse Peretz
Starring: Chris O'Dowd, Rose Byrne, Ethan Hawke
Two stars
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Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
About Housecall
Date started: July 2020
Founders: Omar and Humaid Alzaabi
Based: Abu Dhabi
Sector: HealthTech
# of staff: 10
Funding to date: Self-funded
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
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Tightening the screw on rogue recruiters
The UAE overhauled the procedure to recruit housemaids and domestic workers with a law in 2017 to protect low-income labour from being exploited.
Only recruitment companies authorised by the government are permitted as part of Tadbeer, a network of labour ministry-regulated centres.
A contract must be drawn up for domestic workers, the wages and job offer clearly stating the nature of work.
The contract stating the wages, work entailed and accommodation must be sent to the employee in their home country before they depart for the UAE.
The contract will be signed by the employer and employee when the domestic worker arrives in the UAE.
Only recruitment agencies registered with the ministry can undertake recruitment and employment applications for domestic workers.
Penalties for illegal recruitment in the UAE include fines of up to Dh100,000 and imprisonment
But agents not authorised by the government sidestep the law by illegally getting women into the country on visit visas.
