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

The Federal Tax Authority (FTA) is the UAE government entity responsible for the administration, collection, and enforcement of federal taxes. Established in 2017 by Federal Decree-Law No. 13 of 2016, the FTA was created in anticipation of the introduction of Value Added Tax (VAT) and Excise Tax in the UAE. The authority manages tax registration, return filing, refund processing, and compliance auditing for all businesses subject to federal taxation within the country.

UAE Context

The FTA represents a historic shift in UAE fiscal policy. For decades, the UAE operated with virtually no direct or indirect taxation, relying primarily on hydrocarbon revenues. The introduction of VAT at five percent in 2018 and corporate tax at nine percent in 2023 marked the beginning of a modern tax infrastructure. The FTA has invested heavily in digital systems, offering electronic registration, online filing portals, and digital tax refund mechanisms, including a VAT refund scheme for tourists that operates through a retail point-of-sale network.

Key Data

  • Established: 2017
  • Legal basis: Federal Decree-Law No. 13 of 2016
  • Taxes administered: VAT (5%), corporate tax (9%), excise tax
  • Registration: Mandatory for businesses exceeding AED 375,000 in taxable turnover
  • Systems: EmaraTax digital platform for registration and filing
  • Special schemes: Tourist VAT refund scheme, small business relief

Significance for Vision 2031

The FTA is central to the UAE’s fiscal sustainability strategy under Vision 2031. Tax revenues reduce dependence on volatile oil income and provide a stable funding base for public services and infrastructure. The FTA’s efficient, digital-first approach to tax administration supports the ease-of-doing-business environment while generating the revenue needed to fund economic diversification programs, social infrastructure, and long-term national development priorities.