Economy of United Arab Emirates

Exports and Imports

The UAE remains a major trading nation. estimates suggest exports exceeding $400 billion in 2022, with oil and gas leading the pack. Refined petroleum, gold, and machinery follow closely. Imports are estimated to be over $300 billion in 2022, with consumer products, food, and machinery being major categories.

Balance of Trade

The UAE continues to enjoy a positive balance of trade. This means the value of its exports consistently exceeds the value of imports, contributing to a strong economy.

Infrastructure Development

The UAE's commitment to infrastructure development is unwavering. The extensive highway and expressway network has likely surpassed 6,000 kilometers by now. Dubai maintains its status as a leader in infrastructure projects, with the iconic Burj Khalifa remaining a testament to the country's ambition.

Fiscal Policy

The UAE government upholds its low tax regime, with corporate income tax limited to specific sectors like oil and gas. Government spending likely continues to focus on infrastructure development, social welfare programs, and initiatives to diversify the economy beyond oil.

Monetary Policy

The United Arab Emirates Dirham (AED) remains pegged to the US dollar. The Central Bank of the UAE presumably continues to manage monetary policy by influencing interest rates and money supply to maintain financial stability.

Trade Agreements

The UAE's commitment to free trade continues. The country has likely signed additional free trade agreements with countries around the world since the last data point. These agreements promote trade by reducing tariffs and other barriers, solidifying the UAE's position as a business hub.

Environmental Regulations

The UAE's environmental focus is evolving. The government has likely implemented additional regulations to address pollution control, waste management, and sustainable development. While the country is still developing its green initiatives, it is demonstrably taking steps towards environmental responsibility.

Tax System in United Arab Emirates

Sales tax (VAT): The UAE has a 5% value added tax (VAT) implemented in 2018. This tax is levied on most goods and services at each stage of the supply chain, ultimately borne by the end consumer. There have been no recent changes to the VAT rate as of May 2024.
Property tax: Property taxes in the UAE vary by emirate (state). They typically range from 0% to 4% of the property value and are levied annually. While specific rates might differ by emirate, the overall range remains consistent as of May 2024.
Tax deductions and credits: Tax deductions and credits in the UAE are limited. Some businesses may be eligible for deductions on specific business expenses. The availability and specifics of these deductions likely haven't changed significantly since the introduction of corporate tax.
Tax compliance: The UAE's Federal Tax Authority to emphasize improving tax compliance. They offer various resources and guidance to taxpayers to ensure efficient tax collection.
Tax burden: the tax burden in the UAE remains low compared to many other developed countries. This is likely to continue as a strategy to attract foreign investment and stimulate economic activity.