UAE — Global Financial Center

The United Arab Emirates (UAE) have established themselves as one of the leading global financial centers over recent decades, with Dubai and Abu Dhabi as the two main financial centers. Through the establishment of the Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) special economic zones, the UAE offers internationally oriented regulatory frameworks based on English Common Law.

• DIFC: Dubai International Financial Centre — independent jurisdiction with its own financial regulator (DFSA) and legal system.
• ADGM: Abu Dhabi Global Market — independent financial center zone with its own regulator (FSRA).
• CBUAE: Central Bank of the UAE — regulation of the banking sector at federal level.
• Tax Attractiveness: No personal income tax; corporate tax only since 2023 (9% on profits above AED 375,000).

The UAE gained independence in 1971. Dubai began its rise as a trade and financial hub in the 1980s and 1990s. The founding of DIFC in 2004 as an international financial center zone with its own Common Law legal system was a turning point. The UAE has actively courted international financial companies and gained importance through strategic positioning between European and Asian markets. Post-COVID and amid geopolitical shifts, the UAE has benefited from the relocation of assets and family offices.

The UAE financial jurisdiction encompasses multiple parallel regulatory levels:

• Federal Level: CBUAE (banks and insurance, since 2020 incl. former Insurance Authority), SCA (Securities and Commodities Authority, Federal Law No. 4/2000, capital markets)
• DIFC (Dubai): DFSA-regulated banks, fund managers, brokers, insurance, crypto assets (DTT regime)
• ADGM (Abu Dhabi): FSRA-regulated financial service providers, funds, FinTech, crypto assets
• Cryptocurrency Regulation: VARA (Virtual Assets Regulatory Authority) in Dubai at emirate level

• Licensing: Different licences required depending on location (DIFC/ADGM/onshore) and activity, with DFSA, FSRA, CBUAE, or SCA.
• AML/CFT: Strict anti-money laundering requirements under Federal Decree-Law No. 20/2018; coordinated by the Executive Office for AML/CTF. The UAE was removed from the FATF Grey List on February 23, 2024.
• Corporate Tax: Under Federal Decree-Law No. 47/2022: 0% on the first AED 375,000, 9% on profits above that threshold (from June 2023). DIFC/ADGM qualifying free zone entities may be tax-exempt. From 2025, a 15% minimum tax rate applies to multinational enterprises (MNEs) under OECD Pillar Two.
• Substance Requirements: Economic Substance Regulations (ESR) for certain activities.
• UBO Register: Obligation to register beneficial owners.
• Value Added Tax (VAT): 5% since January 1, 2018 (Federal Decree-Law No. 8/2017).
• Data Protection (PDPL): Federal Decree-Law No. 45/2021 — the UAE's first comprehensive data protection law, effective since January 2, 2022.

4 corrections:
- VARA establishment date March 1, 2022 inaccurate
- ADGM operations commencement date November 21, 2015 wrong — correct is October 21, 2015
- DIFC opening date September 26, 2004 is inaccurate
- FATF Grey List removal was February 23, 2024, not February 1
7 clarifications.
2 notes.