February 23, 2026
Methodology About Newsletter
WE THE UAE 2031
The Vanderbilt Terminal for the UAE's National Transformation
INDEPENDENT GLOBAL INTELLIGENCE FOR THE UNITED ARAB EMIRATES
UAE GDP: AED 2.03T ▲ 5.7% | Non-Oil GDP Share: 84.3% ▼ -5.2pp | FDI Inflows: $45.6B ▲ 48.7% | GDP Growth: 4.0% ▲ -0.3pp vs 2023 | Inflation: 1.7% ▼ +0.0pp vs 2023 | Female Participation: 55.1% ▲ +0.6pp vs 2023 | Population: 11.0M ▲ 4.8% | Emiratisation Rate: 12.5% ▲ 2.1pp | Global Competitiveness: #7 ▲ 3 places | Clean Energy Capacity: 7.2 GW ▲ 18.4% | ADX Index: 9,842 ▲ 4.7% | DFM Index: 4,621 ▲ 6.2% | UAE GDP: AED 2.03T ▲ 5.7% | Non-Oil GDP Share: 84.3% ▼ -5.2pp | FDI Inflows: $45.6B ▲ 48.7% | GDP Growth: 4.0% ▲ -0.3pp vs 2023 | Inflation: 1.7% ▼ +0.0pp vs 2023 | Female Participation: 55.1% ▲ +0.6pp vs 2023 | Population: 11.0M ▲ 4.8% | Emiratisation Rate: 12.5% ▲ 2.1pp | Global Competitiveness: #7 ▲ 3 places | Clean Energy Capacity: 7.2 GW ▲ 18.4% | ADX Index: 9,842 ▲ 4.7% | DFM Index: 4,621 ▲ 6.2% |

Definition

A branch office is an operational extension of a parent company that conducts business in a jurisdiction outside the parent’s country of incorporation. Unlike a subsidiary, a branch office does not have a separate legal identity; it operates under the name and legal personality of its parent company. The parent company bears full liability for the branch’s obligations and debts. Branch offices are commonly used by multinational corporations seeking to establish a commercial presence without forming an independent local entity.

UAE Context

Foreign companies may establish branch offices on the UAE mainland by registering with the Department of Economic Development of the relevant emirate. A branch office can perform the same activities as its parent company and engage directly with the UAE market. However, it historically required a UAE national service agent, who does not hold equity but facilitates government processing. Following recent regulatory reforms, the service agent requirement has been relaxed for certain activities. Branch offices must obtain a trade licence and are subject to UAE corporate tax. They may also be established within free zones, where they follow the specific regulations of that free zone authority.

Key Data

  • Legal status: Not a separate legal entity; extension of the parent company
  • Liability: Parent company bears full liability for branch operations
  • Service agent: Required for some mainland activities; waived in certain sectors
  • Licence: Must obtain a trade licence from the DED or relevant free zone
  • Taxation: Subject to 9% UAE corporate tax on attributable profits

Significance for Vision 2031

Branch offices serve as a low-barrier entry mechanism for multinational companies looking to test or expand in the UAE market. By streamlining branch registration and reducing service agent requirements, the UAE supports Vision 2031’s objective of attracting global enterprises and deepening the country’s integration into international supply chains and service networks.