REDOMICILIATION FROM THE UAE: LEAVE OR STAY?

Redomiciliation from the UAE: To Leave or to Stay

Amid rising tensions in the Middle East, businesses are increasingly considering diversifying their regional footprint or relocating operations to other jurisdictions.

For companies operating in the UAE, redomiciliation may be an optimal solution when it is important not only to change the jurisdiction of incorporation, but also to preserve legal identity, corporate history, and existing contracts.

Currently, outbound redomiciliation from the UAE is technically available only to residents of certain Free Zones. In this context, the inbound redomiciliation mechanism within the UAE (introduced in October 2025), allowing transfers between Free Zones and the Mainland, provides an opportunity to implement an intermediate step when relocating a company out of the UAE.

The UAE does not impose an exit tax, making redomiciliation generally tax-neutral from a UAE perspective. The estimated timeframe is 2 to 6 months.

Potential destination jurisdictions include Mauritius, Hong Kong, Kazakhstan (AIFC), Seychelles, Qatar (QFC).