What Changed for Business in the UAE: 15% Corporate Tax, Emiratisation, and Mandatory Health Insurance

A set of changes now in force in the UAE is reshaping the economics of running a company here. Here are the four main ones.

Mandatory health insurance for employees

Employers must now provide staff with health insurance — without it, employees can't obtain or renew a residency visa. The requirement used to apply unevenly across emirates; it's now universal. Hiring gets more expensive, and for a small company that line item is noticeable.

15% corporate tax for large multinational groups

The UAE's standard corporate tax rate is 9% above a set profit threshold. For large multinational groups, a 15% rate now applies — bringing the country in line with the global minimum tax level agreed by OECD countries.

The fair question is whether this slows the relocation of head offices to Dubai. So far the evidence says no — the emirate competes on more than just its tax rate, also on speed of process, infrastructure, and the absence of personal income tax. But the old pitch of "zero here" no longer applies to large groups.

Emiratisation: 8% at companies with 50+ staff

Companies with more than 50 employees must ensure at least 8% of staff are UAE nationals. It's part of an ongoing government programme, and missing the quota triggers financial contributions.

For companies in certain sectors, hitting the target is genuinely difficult, simply given the structure of the local labour market. Workforce planning around the 50-employee threshold needs to account for this in advance.

Utility tariffs

Utility tariffs have risen for the first time in a decade. It's a minor line next to the rest, but for a property owner it feeds directly into the yield calculation: service charges and electricity and water bills are part of net return.

Based on official announcements from UAE authorities on changes to labour, tax and tariff regulation.