The UAE’s Economic Substance Regulations (ESR) framework was one of the country’s most disruptive compliance regimes when it launched in 2019. Six years later, the rules have been formally withdrawn for recent financial years — but the historical…
UAE free zone entities pay 0 % corporate tax on qualifying income if they achieve Qualifying Free Zone Person (QFZP) status under Ministerial Decision No. 229 of 2025. QFZP status requires meeting six strict conditions — substance, qualifying act
The six GCC countries apply five different corporate tax models, ranging from 0 % in Bahrain to 20 % in Saudi Arabia for foreign-owned entities. The UAE’s 9 % federal corporate tax — introduced in June 2023 — sits in the middle, with a 0 % rate a
Every GCC country offers two incorporation paths — mainland (licensed by the national commercial registry) and free zone (licensed by a designated zone authority). Mainland gives full domestic market access. Free zones give 100 % foreign ownershi
The GCC hosts over 80 free zones across six countries. A free zone permits 100% foreign ownership, applies its own licensing rules, and often offers corporate tax incentives.
UAE mainland licences let you trade directly with UAE customers at 9% corporate tax. UAE free zones offer 0% on qualifying income plus 100% foreign ownership, conditional on meeting strict 2026 QFZP rules.
