The UAE Ministry of Finance has launched the first phase of its Research and Development (R&D) Tax Incentives Programme, offering businesses tax credits of up to 50% on qualifying R&D expenditure, capped at AED 5 million.
The initiative is designed to encourage private-sector investment in innovation and support the UAE’s ambition to become a global hub for advanced industries and emerging technologies. The tax credit is non-refundable, reflecting the early-stage rollout of the country’s corporate tax framework.
Authorities said the programme aligns with international standards, including the OECD Pillar Two, ensuring consistency and predictability for businesses operating in the UAE.
Phase 1 will also serve as a testing ground, with policymakers set to assess uptake and economic impact. Future phases may introduce enhancements such as refundable credits or expanded eligibility to further stimulate innovation and attract investment.
Gulf Economist Staff Writer