Dubai is a destination where ambition meets innovation. The year 2025 revolves around a regulatory transformation that entices entrepreneurs with an equal share of worry and excitement. The new horizon for this city within global commerce necessitates considering the legislative implications surrounding entrepreneurial activity and the audacity to dream or dare to build.
Corporate Taxation: A New Dawn
The fiscal horizon of the UAE has been graced with the introduction of a corporate tax regime. Starting in June 2023, a standard corporate tax rate of 9% is levied on taxable profits commencing from AED 375,000. This initiative puts the country on a level with global tax practices while inculcating transparency in its operations and economic diversification.
Domestic Minimum Top-up Tax: Integrating with Global Standards
On January 1, 2025, the UAE was to introduce the Domestic Minimum Top-up Tax, ensuring that large multinational enterprises maintain a minimum effective tax rate of 15% on their profits. The DMTT targets MNEs with consolidated global revenue exceeding €750 million, highlighting the UAE's support for the OECD's international tax agreement and its aim to combat tax avoidance.
Emiratization: Developing National Talent
The UAE has intensified its Emiratization efforts to balance economic and social growth.
By June 2025, companies with 50 or more employees must have a 7 percent representation of Emiratis in the workforce, increasing to 8 percent by the end of the year.
Smaller companies, with 20 to 49 employees, must employ at least one Emirati in a skilled position. Penalties on businesses for noncompliance can be heavy. This stance shows the determination of the government to strengthen its citizens in the private sector.
Conservation: Prohibition of Single-Use Plastic
Dubai provides environmental sustainability by establishing a complete ban on single-use plastic. The ban will come into effect on January 1, 2025. Plastic straws, plastic cups, stirrers, table covers, and food containers made from Styrofoam shall thus be banned.
The effort not only aligns with international environmental reigns but also impels corporates to consider environment-friendly alternatives: a shared responsibility for Mother Earth.
Visa Regulation: Compliance
With the closure of the visa amnesty on December 31, 2024, intense pressure builds upon the enforcement of visa regulations. The time given to these individuals to regularize their status has been reduced considerably, with the onus of compliance now laid on them, or else they will be penalized for such violations.
The purpose of this rule is to create a sustainable strategy upon which the UAE can bank its integrity and make fortifications against violations of legitimate residency and employment.
Electric Vehicle Charging Infrastructure: Moving to Paid Services
The UAE has reviewed its electric vehicle (EV) charging policy, which is one of the sustainable energy initiatives in the country. Starting from January 1, 2025, these standardized tariffs are applied to EV owners for the use of charging services, as opposed to the free services they have enjoyed all along.
This demonstrates the country's commitment to responsible energy consumption and encourages the development of infrastructure for EVs.
Driving Age: Empowering Youths
According to the recent federal decree-law on traffic regulation, the legal age for driving in the UAE has been reduced to 17. Young people will be granted access to driving privileges earlier and freedom while ensuring that they would then comply with stricter safety measures for road safety.
Salik Surge Pricing: Managing Traffic Flow
As per the Salik surge pricing scheme, the tolls vary according to peak and off-peak times, thus persuading the driver to change the travel timings and enhancing efficient usage of the road. This dynamic toll scheme is being approved to alleviate traffic congestion within Dubai.
This initiative boosts traffic movement and adds to environmental sustainability through lesser emissions owing to reduced vehicles on the roads.
Corporate Governance: Enriching Diversity
The UAE Ministry of Economy takes international strides towards gender diversification with all private joint stock companies mandated to appoint at least one female director on their boards.
This ruling comes into force in January 2025 and ties in with the target set for the UAE Gender Balance Council to realize a leadership composition of 30% females by the end of that year. This will go a long way in promoting more inclusion and diverse perspectives in corporate governance.
As the growth story of Dubai continues to expand vertically higher into the skies, so does its commitment to creating a dynamic, equitable, and sustainable business environment. Brilliant entrepreneurs entering this vibrantly bustling city must attune themselves to these legislative symphonies where ambition must blend into compliance and innovation into responsibility.
In a metropolis like Dubai, the entrepreneurs would not only find opportunities but also places where they can create their legacy. At Markai Corporate Services, we help entrepreneurs with market trends and all the business laws. Not only does it help them make timely decisions, but it is also a fast-growing entity at just the right moment.
