Business

What foreign investors need to know about UAE’s updated tax rules

Published

5 months ago

April 7, 2025

Spread the love

The UAE has introduced new rules to clarify when foreign companies or investors may be subject to corporate tax on their investments in the country.

Under Cabinet Decision No. 35 of 2025, the UAE Ministry of Finance has outlined specific conditions under which non-resident investors in Qualifying Investment Funds (QIFs) or Real Estate Investment Trusts (REITs) will be seen as having a taxable presence (nexus) in the UAE.

What Does This Mean for You?

If you’re a non-resident juridical person (i.e. a foreign company or legal entity) investing in a QIF or REIT in the UAE, you’ll only be considered taxable in the UAE if:

The fund does not distribute at least 80% of its income within nine months after the end of its financial year. In this case, your tax obligation starts from the date you acquired the investment.
The fund does distribute 80% or more, but your taxable status starts from the date the dividend is paid.
The QIF fails to meet the diversity of ownership rules during the tax period.

Good News for Passive Investors

If your investment is in QIFs or REITs that comply with the rules and none of the exceptions apply, you won’t be considered to have a taxable presence in the UAE. This means no corporate tax liability under the UAE’s tax system.

Why This Matters

This decision gives much-needed clarity to international investors. It helps ensure that foreign investment in UAE-based funds remains attractive and tax-efficient while aligning with the country’s new corporate tax framework.

In short, if you’re investing in compliant UAE funds or REITs as a non-resident, you’re unlikely to face UAE corporate tax unless certain distribution or ownership conditions aren’t met.

(Source: Wam)

Related Topics:Business Corporate investmentfinds investors ministryoffinanace non-resident tax taxrules uae uaetaxsystem

Michael Gomes

With over 35 years of experience in journalism, copywriting, and PR, Michael Gomes is a seasoned media professional deeply rooted in the UAE’s print and digital landscape.

Business

Dubai pilots on-foot package delivery with Amazon to cut traffic and create new opportunities

Published

4 hours ago

August 27, 2025

Michael Gomes

Spread the love

Dubai Future Foundation (DFF) and Amazon UAE have launched a groundbreaking programme that allows individuals to deliver Amazon packages on foot, creating new opportunities within Dubai’s gig economy.

The initiative follows Amazon’s agreement to join Sandbox Dubai, part of DFF’s strategy to test innovative business models under the Dubai Economic Agenda (D33).

Flexible Earning Opportunities

The pilot project offers individuals and small business owners a chance to earn additional income through flexible, on-foot delivery services in densely populated areas of Dubai. It aims to make better use of idle working hours while helping businesses scale efficiently.

Beyond economic benefits, the program also supports sustainability by reducing reliance on delivery vehicles, easing congestion and cutting carbon emissions.

Public-Private Collaboration

Ronaldo Mouchawar, Vice President of Amazon Middle East, Africa, and Turkey, said the programme creates gig economy opportunities and boosts entrepreneurship.

Sandbox Dubai

Sandbox Dubai provides a controlled environment for innovators to test new services and business models with flexible regulatory oversight. The platform is central to Dubai’s plan to double its economy in the next decade and position itself among the world’s top three global cities.

Business

Indians lead new business registrations in Dubai, Chamber data shows

Published

4 hours ago

August 27, 2025

Michael Gomes

Spread the love

Indian entrepreneurs continue to drive new business growth in Dubai, according to the latest figures from the Dubai Chamber of Commerce.

In the first half of 2025, a total of 9,038 Indian-owned companies joined the chamber, a 14.9% year-on-year increase, making India the top contributor among non-UAE businesses.

Pakistan ranked second with 4,281 new companies (up 8.1%), followed by Egypt in third with 2,540 companies (up 8.3%).

Bangladeshi businesses posted the highest growth rate at 37.5%, with 1,541 new companies joining, placing Bangladesh fourth. The UK ranked fifth with 1,385 new members, reflecting 11.1% growth.

Other countries in the top 10 included Syria (945), China (772), Jordan (688), Türkiye (642), and Canada (535).

Sector Trends

New members were most active in:

Wholesale & Retail Trade – 35%
Real Estate, Renting & Business Services – 35%
Construction – 17.3%
Transport, Storage & Communications – 7.6%
Social & Personal Services – 7.6%

The results underline Dubai’s position as a global hub for investment and entrepreneurship, attracting businesses across Asia, Europe, and North America.

Companies

Dubai warns engineering firms over costly villa designs

Published

1 day ago

August 26, 2025

Michael Gomes

Spread the love

Dubai Municipality has issued warnings to several engineering consultancy offices after finding that they exaggerated structural designs for citizens’ villas.

According to officials, these inflated designs went against the Dubai Building Code and led to unnecessary construction costs for property owners, without any real engineering need.

The move is part of the Municipality’s efforts to regulate Dubai’s construction sector and protect residents from extra financial burdens. Consultancy offices across the emirate had already been reminded through circulars to strictly follow approved engineering standards.

Eng. Maryam Al Muhairi, CEO of the Buildings Regulation and Permits Agency, said:

“Compliance with the Dubai Building Code is not only a legal requirement but also a professional and ethical responsibility. The goal is to ensure safe, high-quality construction without forcing citizens to pay more than necessary.”

She added that Dubai Municipality will continue to monitor consultancy offices and contractors to prevent excessive use of building materials, including steel, and ensure construction remains efficient, safe, and cost-effective.

Repeat offenders could face disciplinary measures, including poor annual evaluations or even suspension. Earlier this year, two consultancy offices were banned from licensing new projects for six months due to violations.

By cracking down on such practices, Dubai Municipality says it aims to strengthen the emirate’s construction sector, cut waste, and support sustainable urban growth.