As the global economic landscape grows increasingly complex and competition to attract investments intensifies, modern tax systems, amid the transformations witnessed by the global economy, have become one of the most prominent strategic tools used by nations to enhance financial sustainability and strengthen economic resilience. Tax policies are no longer merely traditional instruments for regulating public revenues; they are now integral to broader frameworks that supporting economic growth while balancing financial stability with a conducive business and investment environment.
A balanced and transparent tax system extends beyond the regulation of public revenues. It represents a cornerstone of economic confidence upon which modern business environments are built. Against this backdrop, the United Arab Emirates has prioritised the development of an advanced tax system that combines financial efficiency with legislative flexibility, thereby enhancing the competitiveness of the national economy and reinforcing the country's position as a global destination for investment and business.
The UAE's tax system has not been designed merely as a conventional financial tool, but as part of a comprehensive economic vision aimed at enhancing financial sustainability and embedding the principles of governance and transparency in the management of public resources. It supports the country's economic diversification journey, aligned with the directives of the wise leadership and national strategies to build an economy driven by innoVATion, knowledge, and sustainability.
In this context, the Federal Tax Authority (FTA) continues to develop a modern tax system that keeps pace with global economic transformations while supporting the competitiveness of the UAE's business environment. This approach is founded on promoting voluntary tax compliance, simplifying procedures, and enhancing government services to strengthen trust between regulatory entities and the business community, while fostering effective partnerships with the priVATe sector.
Digital transformation represents one of the key pillars upon which the Authority relies in advancing tax administration. Advanced technologies, including artificial intelligence and data analytics, are leveraged to enhance operational efficiency and improve the quality of services provided to taxpayers. This contributes to building a smarter and more efficient tax ecosystem that simplifies procedures, enhances compliance, and achieves a balance between effective tax administration and ease of doing business.
This strategic vision has translated into tangible results. The taxpayer base has witnessed significant growth, reflecting the expansion of compliance and the business community's confidence in the tax system. The total number of registrants in the UAE tax system has exceeded 1.2 million.
The FTA has also continued to implement development programmes aimed at enhancing government efficiency and simplifying procedures for taxpayers. Among the most prominent initiatives is the Zero Government Bureaucracy Programme, a pioneering government initiative designed to improve operational efficiency and reduce administrative procedures. The Authority has achieved notable progress in this area, implementing 75 elimination initiatives during the programme's second cycle, including 40 initiatives at the first level, 32 at the second level, and three at the third level. These initiatives focused primarily on registration services (48 initiatives), and refund services (14 initiatives).
These efforts have had a positive impact on the taxpayer experience. A total of 75 development and improvement initiatives, covering core and internal services, contributed to achieving a 90 percent score in the Customer Pulse Index. Furthermore, the United Arab Emirates ranked first globally in the Ease of Paying Taxes Index and first globally in the Taxation, Reduced Bureaucracy, and Tax Evasion Index.
As part of its digital transformation efforts, the Authority continues to develop the EmaraTax platform as the integrated digital platform for managing tax services in the UAE. The system enables the seamless completion of 44 tax procedures and supports electronic integration with relevant government entities, simplifying processes and facilitating compliance for businesses and individuals.
The role of the FTA extends beyond developing systems and services to supporting the community and enhancing quality of life. In this context, the Authority continues to implement the VAT Refund Scheme for UAE Nationals on the construction of new residences. The value of approved refund applications during December 2025 and January 2026 reached approximately AED 94.44 million, reflecting the Authority's commitment to delivering flexible government services that support citizens.
Today, the UAE's tax system represents an advanced model for building a balanced framework that combines financial efficiency with enhanced national economic competitiveness. The continuous development of tax systems and services not only improves the efficiency of financial administration but also strengthens investor and business confidence in the UAE's business environment, reinforcing its status as a global economic hub.
As global economic transformations continue, the United Arab Emirates remains committed to developing its tax system in line with international best practices, further strengthening its ability to support sustainable economic growth. In this regard, the FTA will continue its efforts to establish a smarter, more efficient, and more flexible tax ecosystem that enhances the competitiveness and sustainability of the national economy for generations to come.
Abdulaziz Mohammed Faraj Al Mulla
Director General of the Federal Tax Authority