Qatar or United Arab Emirates: where should your business be based?
The United Arab Emirates ranks higher in the index, 01 against =03. Which suits you depends on where the owners live, what the company is for and how it will be run.
Pillar by pillar
Doing business, side by side
Tax
The 10% rate applies to the foreign-owned share of mainland profits and to QFC locally sourced profits. Companies wholly owned by Qataris and GCC nationals resident in Qatar pay no income tax. Large groups face a 15% minimum top-up tax from 2025. There is no VAT.
Profits up to AED 375,000 are taxed at 0%. In a free zone the 0% rate reaches qualifying income only, and VAT is charged at 5%.
Set-up
MoCI commercial registration through the Single Window takes 2 to 3 business days, from QAR 500 a year. A QFC holding company or SPC costs USD 500 to apply and USD 500 a year; a QFC LLC pays USD 5,000 a year.
Set-up typically costs AED 10,000 to 50,000 in total, depending on mainland or free zone, the activity and any licences. Capital must be fully paid at incorporation.
On the ground
Mainland companies need approved premises. QFC firms need a registered office in the QFC, a Senior Executive Function and a Qatar resident director and secretary, unless a licensed support service provider fills these roles.
A mainland company needs no resident director or secretary, but it must appoint an auditor. Free zone requirements vary from one zone to another.
Ownership
Companies declare beneficial owners holding 20% or more to the Ministry of Commerce and Industry with their commercial registration application. QFC companies file an annual UBO report. Neither register is public.
The beneficial ownership register is open to the authorities only. Each company must name a UAE-resident individual as the contact for its register.
Residence
Buying property worth QAR 730,000 brings a renewable residence permit without a sponsor, and QAR 3.65m brings permanent residency privileges. An entrepreneur residency needs endorsement by a local incubator.
An investor or partner can hold a five-year green residence visa on the trade licence. A ten-year golden visa needs capital or a partner's share of AED 2 million.
Living and working
Currency
Qatari riyal (QAR), pegged to the US dollar at 3.64.
UAE dirham, pegged to the US dollar.
Time zone
UTC+3 all year, with no daylight saving.
UTC+4.
Personal tax
There is no income tax on salaries, wages or allowances. Self-employed people can be taxed on Qatar-source business income.
The UAE does not levy income tax on individuals.
Flights
Hamad International Airport says it connects to more than 197 destinations with 55 airline partners, led by Qatar Airways.
Dubai International served 217 destinations in 99 countries at the end of H1 2026; London is 6 hrs 50 mins by British Airways.
Language
Arabic is the official language; English is allowed in some Dubai Courts circuits, and the DIFC Courts sit in English.
Qatar vs United Arab Emirates: common questions
Qatar: The 10% rate applies to the foreign-owned share of mainland profits and to QFC locally sourced profits. Companies wholly owned by Qataris and GCC nationals resident in Qatar pay no income tax. Large groups face a 15% minimum top-up tax from 2025. There is no VAT. The United Arab Emirates: Profits up to AED 375,000 are taxed at 0%. In a free zone the 0% rate reaches qualifying income only, and VAT is charged at 5%.
Qatar: MoCI commercial registration through the Single Window takes 2 to 3 business days, from QAR 500 a year. A QFC holding company or SPC costs USD 500 to apply and USD 500 a year; a QFC LLC pays USD 5,000 a year. The United Arab Emirates: Set-up typically costs AED 10,000 to 50,000 in total, depending on mainland or free zone, the activity and any licences. Capital must be fully paid at incorporation.
Qatar: Mainland companies need approved premises. QFC firms need a registered office in the QFC, a Senior Executive Function and a Qatar resident director and secretary, unless a licensed support service provider fills these roles. The United Arab Emirates: A mainland company needs no resident director or secretary, but it must appoint an auditor. Free zone requirements vary from one zone to another.
Qatar: Companies declare beneficial owners holding 20% or more to the Ministry of Commerce and Industry with their commercial registration application. QFC companies file an annual UBO report. Neither register is public. The United Arab Emirates: The beneficial ownership register is open to the authorities only. Each company must name a UAE-resident individual as the contact for its register.
Qatar: Buying property worth QAR 730,000 brings a renewable residence permit without a sponsor, and QAR 3.65m brings permanent residency privileges. An entrepreneur residency needs endorsement by a local incubator. The United Arab Emirates: An investor or partner can hold a five-year green residence visa on the trade licence. A ten-year golden visa needs capital or a partner's share of AED 2 million.
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