The United Arab Emirates has been ranked second in the world for its efforts in combating tax evasion and fifth globally in the efficiency of its tax policies, according to the latest report from the IMD World Competitiveness Centre in Switzerland.
The announcement was made during a UAE Cabinet meeting held Monday at Al Watan Palace in Abu Dhabi, chaired by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister of the UAE, and Ruler of Dubai.
Sheikh Mohammed credited this achievement to the commitment of Emirati professionals who have driven the country’s tax initiatives forward. “The tireless efforts of dedicated Emirati teams” were recognized as instrumental in registering over 520,000 companies under the corporate tax system and 470,000 entities under VAT.
He stressed the importance of building a reliable and efficient tax framework, saying it “serves as a key indicator of the economy’s strength and resilience.” The Cabinet also reviewed updates on the development of the UAE’s tax system, which Sheikh Mohammed described as “a vital pillar supporting the nation’s financial sustainability and reinforcing our global competitiveness.”
“Over recent years, a new culture of tax awareness and compliance has taken root across sectors, an achievement that reflects the maturity and adaptability of our economic landscape,” he said.
The Prime Minister also extended appreciation to the teams behind the achievement, noting their role in securing the financial future of the UAE. “We extend our sincere appreciation to the entire team whose dedication continues to shape a world-class tax system, helping to secure the financial sustainability of the UAE’s ongoing development journey.”