UAE Trends and Developments Contributed by: Amir Alkhaja, Gerry Rogers, Daria Selivanova and Danila Kriuchkov, Habib Al Mulla & Partners
Having marked its 54th anniversary in 2025, the UAE has stepped into another year of intense development and enhancement. As the local market follows global trends with an increasing number of businesses bringing their headquar - ters and operations to the region, as well as local businesses furthering their cross-border expan - sion, the UAE regulatory landscape evolves to offer a reliable platform meeting the aspirations of the first-time entrepreneurs and expectations of sophisticated global players. One of the ten principles formulated in 2021 as the focus areas within the “Principles of the 50”, being the country’s national strategy for the years until 2071, provides that ”...the econom - ic development of the country is the supreme national interest, and all state institutions, in all fields and across different federal and local lev - els, shall bear the responsibility of building the best global economic environment and maintain - ing the gains achieved over the past 50 years”. The UAE jurisdiction traditionally offers a number of benefits such as relatively low taxation, low inflation and a stable currency (pegged to the US dollar). Additionally, modernisation and align - ment with global standards is seen in a variety of sectors, and is demonstrated in all the aspects of business activities, from investment planning and market entry, to further regulatory aspects, compliance, taxation, financing, assets and creditor protections, and other matters. Below we address the topics that prove to be some of the most frequently discussed in current and recent analyses. Digitalisation/Innovation In order to address the global trend for inno - vation, the UAE has taken a course towards digitalisation. The country actively implements new technologies across various sectors, aim -
ing to provide forward-looking sustainable and efficient solutions to the businesses establishing their presence in the region. Technology is being implemented to speed up, simplify and automate processes, includ - ing in the regulatory field. The UAE has recently announced its decision to use AI for drafting and reviewing laws and regulations, making it the first country globally to undertake the task and apply technology in such a sensitive matter. To serve this purpose, the Cabinet has recently established the Regulatory Intelligence Office, which will be responsible for implementing the initiative. Investments With a 48% increase on the previous year, the amount of new foreign direct investment into the country secured for the UAE the second place in global rankings, with the US taking the lead. Guided by the development plan presented by the President His Highness Sheikh Mohammed bin Zayed Al Nahyan, the country is aiming to attract further investments amounting to AED1.3 trillion over the coming six years. The legisla - tion follows the expansive approach to offer new instruments to interested stakeholders. The importance of attracting foreign direct investment has also been addressed at the highest level by establishment of the Ministry of Investments in 2023, aimed at structuring the approach to various initiatives, suggesting a national FDI strategy, and forming a platform for an inclusive dialogue. The Ministry is to play piv - otal role in developing a regulatory background for the field in order to address the demands of the fast-changing global investment climate. Maintaining its traditional status of a low-tax jurisdiction, the UAE has made a move to further
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