The UAE has achieved significant recognition by ranking second in the world for combating tax evasion and fifth globally for the efficiency of its tax policies, according to the latest annual report from the IMD World Competitiveness Centre in Switzerland. This announcement was made during a Cabinet meeting chaired by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.

In attendance were prominent officials including Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, and Chairman of the Presidential Court; and Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance of the UAE. Sheikh Mohammed attributed the success in taxation to the “tireless efforts of dedicated Emirati teams,” highlighting that under the corporate tax system, 520 000 companies and 470 000 entities under the VAT system have been registered.

During the meeting, the Cabinet also discussed the latest advancements in the UAE’s tax system, which is seen as a crucial element supporting the nation’s financial sustainability and enhancing its global competitiveness. Sheikh Mohammed stated that a strong and efficient tax framework is essential for the UAE’s future economic infrastructure, indicating that its effectiveness is a critical measure of the economy’s strength and resilience.

He remarked that a new culture of tax awareness and compliance has developed across various sectors, reflecting the maturity and adaptability of the UAE’s economic landscape. Furthermore, Sheikh Mohammed expressed gratitude to the dedicated team responsible for fostering a world-class tax system, which plays a vital role in securing the financial sustainability of the UAE’s development journey.

In addition to the tax discussions, the UAE Cabinet also approved 44 international agreements spanning economic, developmental, and governmental sectors. The Cabinet authorized the initiation of negotiations for investment protection and promotion agreements with 30 countries globally. The UAE Vice President reaffirmed the country’s commitment to strengthening investment and economic ties with friendly nations while maintaining an open economic approach that enhances its global competitiveness and solidifies its role as a strategic hub connecting East and West.