Why Entrepreneurs Are Choosing 
the UAE in 2025

 The UAE remains one of the top global destinations for launching and scaling a business — and 2025 only strengthens this position

Strategically positioned between Asia, Europe, and Africa, the UAE serves as a global trade hub. The tax landscape is equally favorable: personal income is not taxed at all, and corporate tax ranges from 0% to 9%. Many industries now allow 100% foreign ownership — making it easier than ever to start on your own terms

Business Setup Options in the UAE

Mainland Companies are licensed by the Department of Economic Development and can operate anywhere in the country. They’re eligible for government contracts, and in many sectors, foreign founders can fully own the company. This setup is ideal if you plan to have a physical office or serve local clients directly.

Free Zone Companies are designed to be flexible and remote-friendly. They offer 100% foreign ownership, significant tax benefits, and often allow for full remote registration. These zones are particularly attractive for tech businesses, consultants, e-commerce brands, and logistics operators.

Offshore Companies are the preferred route for those focused on asset protection, global structuring, or international trading. While they do not support UAE visas or physical offices, they offer minimal reporting obligations and useful tax planning benefits

Tax & Regulatory Overview

The UAE's tax regime is one of the most entrepreneur-friendly in the world. Corporate tax is 0% for profits up to AED 375,000 and 9% beyond that. VAT is charged at a standard rate of 5%, while exports benefit from 0% VAT. There’s no personal income tax at all, and customs duties are waived in free zones

Expanding Through Global Trade

The UAE is actively expanding its international trade footprint through CEPA (Comprehensive Economic Partnership Agreements). Recent agreements with India, Israel, and Turkey are already driving cross-border opportunities. In 2025, a Free Trade Agreement with the Eurasian Economic Union (EAEU), including Russia, is expected — opening new markets for 
businesses based in the UAE.

Cultural & Business Etiquette

Doing business in the UAE comes with its own etiquette. Respect for Islamic customs and national holidays is important, as is proper dress — business formal is the norm. While English is widely used in business, Arabic remains the country’s official language. Personal connections and in-person meetings are highly valued in building trust and partnerships.

Helpful Resources

For anyone considering business setup in the UAE, these institutions are key sources of information and regulation:

• UAE Ministry of Economy

• Federal Tax Authority

• Dubai Department of Economy & Tourism

• Dubai Chamber of Commerce