Dubai’s economy is free and open to attract business and investment. Government regulation of private sector activities is at an absolute minimum, within the context of complying with international standard practices.
Initiatives and incentives currently in place to foster business growth include:
- Low value-added tax (VAT), introduced GCC-wide in 2018 was set at just 5%, with exemptions across certain food items, health, education and social services. The city does not implement income tax.
- No direct taxes on corporate profits or personal income (except for oil companies and branches of foreign banks).
- Low customs duties at 4% with many exemptions; 100% repatriation of capital and profits is permitted.
- There are no foreign exchange controls, trade quotas or barriers.
- A stable exchange rate exists between the US Dollar and the UAE Dirham (US$1.00 = AED 3.678).
- Liberal visa policies permit easy recruitment of expatriate labour from all over the world, with 48 countries currently eligible for visa on arrival.