Abu Dhabi – The United Arab Emirates has achieved a significant milestone on the global financial stage, ranking second globally in combating tax evasion and fifth in tax policy efficiency, according to the latest IMD World Competitiveness Centre report released in Switzerland.
The announcement was made during a high-level Cabinet meeting held on Monday at Al Watan Palace in Abu Dhabi. The meeting was chaired by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister of the UAE, and Ruler of Dubai. Also in attendance were 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.
During the session, the Cabinet reviewed recent advancements in the development of the UAE’s comprehensive tax system—a cornerstone of the country’s efforts to enhance financial sustainability and strengthen its global economic competitiveness.
Pioneering Tax Reforms and Compliance
Commending the national teams behind these achievements, Sheikh Mohammed credited the rankings to the dedication of Emirati professionals across sectors. He revealed that over 520,000 businesses are now registered under the corporate tax regime, while 470,000 entities have been brought under the VAT system.
“Our achievements in tax reforms reflect the commitment and professionalism of our teams,” Sheikh Mohammed said. “This new tax culture across sectors illustrates the maturity and forward-thinking nature of the UAE’s economic environment.”
He stressed the importance of building a robust and transparent tax framework, positioning it as an essential component of the UAE’s long-term economic vision. “A sound tax system is not only an administrative tool but a strong indicator of national resilience and infrastructure readiness for future growth,” he added.
Cabinet Approves 44 International Agreements
In addition to the economic performance updates, the Cabinet approved 44 international agreements, spanning economic cooperation, development projects, and government collaboration.
The UAE also initiated negotiations on investment protection and promotion with 30 countries, reinforcing its commitment to nurturing global partnerships.
“The UAE will continue expanding its economic and investment footprint globally,” Sheikh Mohammed stated. “Our open economic policies have strengthened our role as a global hub connecting East and West, and we remain committed to building partnerships with friendly and brotherly nations.”
The Cabinet’s discussions and recent rankings reflect the UAE’s continued pursuit of excellence in public policy, tax governance, and global financial integration—further cementing its reputation as a modern, forward-looking economic powerhouse.
