What Happened?

Recently, the UAE extended its Small Business Relief (SBR) regime under the Corporate Tax framework.

Eligible businesses with annual revenue not exceeding AED 3 million may continue benefiting from this relief for relevant tax periods ending on or before 31 December 2029, subject to meeting the applicable requirements.

This extension provides greater certainty for eligible SMEs, startups and entrepreneurs when planning their medium-term tax and compliance arrangements.

At the same time, a number of Chinese technology companies are expanding their regional and international activities through Dubai, including businesses involved in drone delivery, cross-border payments and advanced air mobility.

These developments indicate that some Chinese technology companies are using Dubai as one of their platforms for accessing markets across the Middle East, Africa and Asia.

In addition, the Dubai Business Forum – China is scheduled to take place in Shenzhen on 14 October 2026.

The forum will focus on areas including:

  • Digital economy;
  • Logistics;
  • Advanced manufacturing;
  • Emerging technologies.

For Chinese companies assessing opportunities in the UAE and the wider Middle East, these developments represent market opportunities worth monitoring.

Key Considerations for Businesses

1. Tax Incentives Are Only One Part of Market Entry Decisions

For companies considering entering the UAE market, policy incentives are only one factor in the overall market-entry decision.

Businesses should assess whether they meet the eligibility requirements for relevant tax reliefs and understand how these incentives fit within their broader commercial strategy.

2. Corporate Structure and Compliance Planning Should Start Early

Corporate structure, licensing arrangements, and ongoing tax and accounting compliance requirements should be considered at an early stage.

Companies operating in sectors subject to additional approvals or regulatory requirements should also evaluate these conditions before entering the market.

Proper planning helps businesses avoid future restructuring costs and operational uncertainty.

3. Define the UAE’s Role in the International Strategy

Companies should clearly determine what role the UAE is expected to play within their international expansion strategy.

For example, the UAE may serve as:

  • A regional sales hub;
  • An operating platform;
  • A regional headquarters;
  • A base for accessing wider international markets.

Different objectives may require different corporate structures, licensing arrangements and operational models.

CA Perspective

CA believes these recent developments are worth monitoring for Chinese companies exploring opportunities in the UAE.

However, businesses should not determine whether a market is suitable solely based on a particular tax incentive or individual market-entry example.

For companies at an early stage of international expansion, it is important to first define:

  • Commercial objectives;
  • Target customers;
  • Actual operating requirements.

Based on these factors, companies can then assess:

  • The most suitable corporate structure;
  • Appropriate licence type;
  • Market-entry approach.

For businesses with more established international operations, additional considerations may include:

  • Tax structuring;
  • Cross-border transactions;
  • Workforce planning;
  • Ongoing compliance management.

UAE Market Opportunities and Long-Term Planning

From CA’s perspective, the value of the UAE market should not be assessed solely by the availability of incentives.

More importantly, companies should evaluate opportunities in the context of:

  • Their international strategy;
  • Operating model;
  • Long-term development objectives.

A well-planned market-entry approach can help businesses establish sustainable operations in the UAE and the wider Middle East region.