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.
