The UAE has introduced a new research and development (R&D) tax incentive programme as part of its evolving corporate tax framework, reinforcing its commitment to innovation-led economic growth.
The initiative is designed to encourage businesses to increase investment in advanced research activities and strengthen the country’s global competitiveness.
Under the first phase, companies can benefit from a non-refundable tax credit of up to 50% on eligible R&D expenditure, capped at AED 5 million.
The incentive aims to support private-sector participation in innovation while easing the financial burden associated with research-driven initiatives.
The programme forms part of a broader strategy to diversify the UAE economy, shifting focus towards knowledge-based industries and high-value sectors.
By aligning fiscal policy with innovation goals, the government seeks to attract global talent, enhance technological capabilities, and foster long-term sustainable development.
Authorities have indicated that the initiative will evolve in subsequent phases, potentially expanding its scope and eligibility criteria.
This phased approach allows for policy refinement while ensuring that the programme remains aligned with market needs and international best practices.
