The compliance function plays a central role not only in ensuring legality, but also in strengthening investor confidence and consolidating the credibility of the country system.
The Emirates today represent a constantly evolving regulatory laboratory, capable of balancing openness to business with a growing focus on transparency and international cooperation .
In recent years, we have seen firsthand how the United Arab Emirates (UAE) has embarked on a process of profound regulatory and economic transformation, aimed at consolidating its role as a global hub for investment, finance, and international trade.
This evolution, accelerated by the growing dialogue with European and Anglo-Saxon partners , has made compliance a central element of the Emirati economic system and an essential condition for operating in a transparent and sustainable manner .
For a long time, the Emirati model was characterized by marked regulatory flexibility and virtually zero taxation , elements that attracted operators from all over the world. However, this very approach raised questions about the risk of misuse of local structures for tax evasion purposes or harmful tax competition .
Since 2019, the Emirates have therefore undertaken a path of alignment with international standards , progressively implementing OECD and EU recommendations .
The Emirati legislature has implemented progressive tax reforms , and the adoption of the Common Reporting Standard (CRS) for the automatic exchange of financial information.
This evolution finally found a point of arrival with the introduction of the 9% Corporation Tax in June 2023, which marked the transition from a purely exemption-based tax model to a more transparent tax system comparable to that of advanced economies.
Another area of great concern is the fight against money laundering and terrorist financing (AML/CFT) . The UAE has established the Financial Intelligence Unit (FIU) and introduced stringent reporting requirements for banks, professionals, and trust companies.
These measures contributed to strengthening the supervisory system and improving the country’s international reputation , culminating in 2024 with the UAE’s exit from the FATF grey list .
One of the most interesting aspects of the Emirate framework is the coexistence between the federal “ onshore ” system and the Free Zones (such as the Dubai International Financial Centre – DIFC and the Abu Dhabi Global Market – ADGM ), which apply their own regulations inspired by Anglo-Saxon law .
This regulatory duality imposes multi-level compliance on companies , requiring careful management of regulatory differences and interactions between the two areas.
In our work with Italian and European companies, we increasingly see compliance in international relations as no longer perceived as a mere bureaucratic requirement, but as a competitive and reputational tool.
Complying with international standards means easier access to capital markets , reduced risk of sanctions and improved stakeholder trust .
For operators intending to establish or invest in the United Arab Emirates, it is essential:
- – ensure full compliance with local accounting and tax obligations ;
- – ensure that goods and services are valued in accordance with the principles of free competition ;
- – adopt due diligence and risk assessment models compliant with local AML principles ; coordinate their governance and compliance policies with those of their home jurisdictions, ensuring cross-border harmony and traceability .
The Emirates today represent a constantly evolving regulatory laboratory , capable of balancing openness to business with a growing focus on transparency and international cooperation .
In this scenario, the compliance function takes on a central role not only to guarantee legality , but also to strengthen investor confidence and consolidate the credibility of the country system .
The challenge for the coming years will be to maintain this balance, so that compliance is not perceived as an obstacle, but as a structural factor of growth and stability for an economy that increasingly aspires to be a global benchmark.
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*Edited by Jalal Nasri and Gabriele Schiavone of SGS Partners, London and Abu Dhabi
