Insight
Dubai: A Major Economic and Tourism Centre
January 2026
The United Arab Emirates (UAE) continue to attract international businesses due to its desirable commercial environment and lifestyle.
The UAE is a leading destination for international businesses. The UAE government has prioritised providing foreign investors with excellent facilities and infrastructure, taking advantage of the nation’s strategic location and political stability. Research from Global Media Insight in 2024 shows the UAE’s population has grown from 10.24 million to 12.5 million, with expatriates making up 88.48% of the total. This substantial growth is due to several factors including safety, open-border work-policies, expat-friendly laws, and abundant professional opportunities.
A business location
The UAE is a premier business hub. In Dubai alone, the Chamber of Commerce registered over 51,000 new companies during the first nine months of 2024, a 4% increase on the same period of 2023. This demonstrates the city’s growing attractiveness to regional and global investors. Notably, Dubai ranked as the world’s top city for attracting Foreign Direct Investment (FDI) projects in the first half of 2024, according to the Financial Times Ltd.’s
‘FDI Markets’ data. The UAE’s strategic location at the intersection of Asia, Europe and Africa makes it a key international trade centre. Its time zone further enhances its appeal for professionals working with clients and colleagues across Asia and Europe. Unlike many countries with complex regulations, expats can quickly establish a business in just 15 minutes through the UAE government’s online platform, Basher. Entrepreneurs can also leverage the UAE’s Free Zones - over 40 special economic zones across the Emirates – offering tax exemptions and customs duty waivers.
Which Free Zone?
Free Zones cater to specific industries, offering tailored facilities. For instance, Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM), the UAE’s two international financial hubs, are home to leading financial institutions. Choosing the right Free Zone often depends on your customer base. Locating your business near your primary customers can streamline product and service delivery. Consider the available facilities and infrastructure in each Free Zone. Companies not requiring dedicated office space might opt for a Free Zone offering shared office solutions. This ensures regulatory compliance (as all companies must maintain an office presence) without the expense of leasing an entire, potentially underutilised, office.
Which Emirate?
Selecting the right Emirate for your business hinges primarily on costs and available facilities. For example, prime locations in Abu Dhabi and Dubai command higher rents compared to other Emirates. Many companies opt for the Northern Emirates for warehousing and industrial space due to greater availability and competitive pricing.
Industry plays a crucial role in Emirate selection. For businesses involved in international trade or distribution, proximity to a seaport or airport is essential. Airport access is also a key consideration for companies with frequent travel requirements.
Tax considerations
In 2023, the UAE introduced a corporate tax on business profits. It is the lowest rate in the Gulf Cooperation Council (GCC) except for Bahrain. For financial years starting on or after June 1, 2023, taxable income above AED 375,000 threshold ($102,110) is subject to a 9% tax rate.
Both Free Zones and mainland UAE companies must comply with the new Corporate Tax law, even if they are a ‘Qualifying Free Zone Person’ (QFZP). To qualify as a QFZP and pay 0% tax, a company or individual must be based in a Free Zone and meet other conditions. A 0% corporate tax rate applies to taxable income below AED 375,000 ($102,110).
A lifestyle location
The UAE continues to attract expats due to both its business-friendly environment and desirable lifestyle. Many families relocate to experience the country’s wonderful beaches and renowned tourism attractions. According to a study by Road Genius, Dubai alone saw over 16.79 million tourists between January and November 2024, a 9% increase from the same period in 2023.
Ranked the second safest country in the world according to Numbeo’s 2024 Safety Index, the UAE’s low crime rate and numerous attractions – including world-class aquariums, gardens and malls - have persuaded many expats to move there.
In conclusion, the UAE’s strategic location, pro business environment, robust infrastructure, and attractive lifestyle offerings create a compelling case for international businesses seeking growth and expansion. From streamlined company formation to diverse free zones and strategic emirate selection, the UAE provides a fertile ground for success in the global marketplace.
About the authors
John Donnelly
Dubai, United Arab Emirates
John Donnelly is a director at Russell Bedford (Dubai) Limited, joining in 2008. A fellow of the Institute of Certified Public Accountants in Ireland, he qualified in 2000 and has extensive experience with mid-tier and Big-4 firms in the UAE and Ireland.
After moving to Dubai in 2005, he gained a deep insight into the local regulations. Authorised by the DFSA and ADGM as Audit Principal and Finance Officer, John oversees the firm’s operations, ensuring top-quality audit, accounting, and regulatory services for clients and business partners.
Mark Mallari
Dubai, United Arab Emirates
Mark is a director at Russell Bedford (Dubai) Limited, joining as an audit associate in 2014. He earned his accountancy degree from the Polytechnic University of the Philippines in 2009 and became a Certified Public Accountant in 2010.
Mark has extensive experience in external audit, internal audit and tax compliance. Authorised by the DFSA, ADGM, and FSRA as Audit Principal and Finance Officer, he helps manage daily operations, ensuring high quality services and building strong client and business relationships.