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

An offshore company is a legal entity incorporated in a jurisdiction other than the one in which its principal business activities or beneficial owners reside. Offshore companies are commonly used for asset protection, international trade structuring, intellectual property holding, and wealth management. They typically benefit from minimal taxation, simplified reporting requirements, and strong privacy provisions, though they are generally prohibited from conducting business within the jurisdiction of incorporation.

UAE Context

The UAE allows offshore company formation through several free zone authorities, most notably JAFZA Offshore (Jebel Ali) and RAK International Corporate Centre (RAK ICC). UAE offshore companies benefit from zero corporate tax on qualifying income, 100 percent foreign ownership, and the ability to open UAE bank accounts. However, they cannot trade directly within the UAE mainland market, lease office space outside the registering free zone, or obtain residence visas for employees. These entities are governed by the regulations of their respective free zone authority and must comply with UAE anti-money laundering and beneficial ownership disclosure rules.

Key Data

  • Primary jurisdictions: JAFZA Offshore, RAK ICC, ADGM (international holding companies)
  • Permitted uses: Holding companies, international trading, asset protection, IP holding
  • Restrictions: No direct trade within the UAE, no physical office on the mainland
  • Ownership: 100% foreign ownership permitted
  • Compliance: Subject to UAE economic substance and beneficial ownership regulations

Significance for Vision 2031

UAE offshore structures complement the broader corporate ecosystem by attracting international holding companies and facilitating cross-border investment flows. Under Vision 2031, enhanced transparency and compliance standards have strengthened the credibility of UAE offshore formations, aligning them with FATF recommendations and OECD standards while preserving their utility for legitimate international structuring.

  • JAFZA — A major free zone offering offshore company registration
  • FATF Compliance — International standards governing UAE offshore transparency
  • Free Zone — The regulatory framework under which offshore companies are registered