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VAT Implementation in UAE : Top 3 FAQs
Auditors In UAE : 3 Factors for Considering
UNCTAD Ranked the UAE as the 12th Top Destination for FDIs
VAT – How Prepared is Your Business?
M&A Transactions in Global E-Commerce Sector: Q1-2017
Business Gateway: Dubai opens door for Free Zone Entities to the Mainland
Raju Menon, Chairman and Managing Partner - Kreston Menon

In a landmark reform aimed at enhancing the business ecosystem and reinforcing Dubai’s status as a global investment hub, Dubai Executive Council has passed a resolution permitting Free Zone companies to do business in the Dubai mainland. This change has the potential to open new markets, bring in new business synergies and facilitate more foreign direct investment into the Emirate.

Let us do a deep dive into what the new resolution entails and how it could benefit businesses.

The Resolution No. (11) of 2025: A definite Step Forward

Dubai Executive Council Resolution No. (11) of 2025 permitting Dubai Free Zone entities to expand their business activities to mainland Dubai through the issuance of onshore licenses and activity permits.

The companies registered in Free Zones were restricted from engaging in commercial activities in the mainland which many considered to be regulatory and financial divide that restrained businesses in an increasingly interconnected environment.

The new resolution aims to bridge that gap. Free Zone companies can now engage with the mainland market directly, subject to compliance with Dubai’s regulatory framework, licensing requirements, and sector-specific approvals. This initiative complements with D33 Agenda – the economic vision of Dubai which aims to double the size of economy, which will position Dubai as one of the three global cities for business and innovation.

The Mechanism

Free Zone entities who are looking to take advantage of the new resolution which will be integrating Free Zones and Mainland, may apply for one of the three new types of licenses/permits:
Dubai Economic Agenda – D33
Raju Menon, Chairman and Managing Partner - Kreston Menon
His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai launched the Dubai Economic Agenda ‘D33’ – an agenda that aims to double the size of the economy of the Emirate to USD 8.7 trillion (AED 32 trillion) over the next 10 years.


The agenda will be carried out through 100 transformative projects that will make Dubai a global digital economy leader and a global business centre. The plan details on how the Emirate will become a centre for sustainability and economic diversification and an incubator and enabler of skilled entrepreneurs.

Launching the D33 Agenda, H.H. Sheikh Mohammed said by 2033 Dubai will be among the top 3 global cities and will rank as one of the top 4 global financial centres. 

100 Transformative Projects

FDI to Dubai is expected to increase over AED 650 billion over the next ten years. 
Dubai also aims to double the foreign trade to reach AED 25.6 trillion by partnering with 400 cities.
Government expenditures to increase to AED 700 billion in the next 10 years compared to AED 512 billion in the past decade. 
Dubai is expecting private sector investments to go upto AED 1 trillion by 2033.
Digital transformation projects to contribute AED 100 billion annually for the next ten years. 
The Emirate is optimistic that the value of domestic demand for goods and services will reach AED 3 trillion in the next decade, compared to AED 2.2 trillion in the past ten years.


Dubai’s Digital Economy and Startup Ecosystem

According to H.E. Omar Sultan Al Olama, Minister of State for Artificial Intelligence, Digital Economy and Remote Work Applications, digital economy will contribute to more than 20% of the UAE’s GDP by 2031 compared to the present 9.7%. 

This reflects Dubai’s determination to establish itself as a key tech hub and leading global destination for digital companies. The Emirate aims to attract 300 digital startups and 100 international experts in advanced technologies by the end of 2024 and is bringing in changes to the existing laws and policies that would support the growth of the digital economy and enhance the business environment to attract global digital firms.

Dubai – Global Expansion Springboard for Indian Startups

It is impressive to note that over 83,000 Indian companies are registered with the Dubai Chambers and Indian companies create more than 1 million jobs in the UAE. 
Trade volumes have grown to USD 180 million from USD 100 million in 2019 and is projected to take a quantum jump to reach more than USD 100 billion within five years from the CEPA agreement signed between the UAE and India, the two vibrant economies of the region.

In a recent statement H.E. Mohammad Ali bin Rashed Lootah, President and CEO of Dubai Chambers mentioned that more than 30 per cent of the startup community in Dubai comes from India. 

Many Indian startups see Dubai as a gateway to the EMEA region and Dubai gives them an opportunity to understand the cultural nuances as the Emirate has people from almost 200 countries.

It was in November 2022 that Wipro, the leading Indian tech company announced that it will have its Asia-Pacific, Middle East and Africa (APMEA) strategic market unit headquarters in Dubai which will facilitate their global expansion and investments plans. 

In a report by the Boston Consulting Group (BCG) Dubai was compared with other 11 global tech hubs, and was highlighted as a leader, based on the strategies and policies the leadership of Dubai has employed to attract tech and digital talent from around the world. 

Dubai’s Golden Visa system and remote work visas have proven to be the catalyst for attracting almost 10,000 techies from the Indian startup ecosystem to move to Dubai in the past two years. 

The D33 Agenda’s focus on the digital economy will further accelerate the expansion of Indian Startups to the region by having Dubai as the hub. The support Dubai gives for the crypto and blockchain startups have attracted lot of Web3 tech startups to the region.

Dubai through Freezones like DMCC have attracted hundreds of crypto companies it’s budding digital asset ecosystem. H.E. Ahmed Bin Sulayem, CEO of DMCC has pledged his support to companies in high-impact sectors such as Web3 and blockchain technologies. DMCC’s Crypto Centre serves as a coworking and networking space for entrepreneurs in the crypto and blockchain sectors and a sizeable number of them are Indian entrepreneurs.

The ‘India-UAE startup corridor,’ targets a minimum of 50 validated start-ups based in India and the UAE with a mission to foster 10 of them to become unicorns by 2025.

India has the 3rd largest startup ecosystem in the world and is expected to have an annual growth of almost 15% for the next ten years. India sees startups as the engine for innovation-fueled economic growth.

Indian Prime Minister Shri Narendra Modi recently lauded India’s startup ecosystem for achieving the 100 unicorns milestone and expressed confidence in the country’s unicorns as they are diversifying and are concentrating on the new tech areas of ecommerce, fintech, edtech and agritech. 

India has enormous tech talent, graduating from the IITs, the IIMs and colleges of excellence across the country. This becomes a synergetic relationship where the nations can co-create unicorns for the global market, thus contributing to Dubai’s aim of 30 unicorns by 2033. 

Dubai Economic Agenda for the next decade will certainly cement the status of the Emirate as a global tech hub and accelerate growth by investing in human development, skillsets, and advanced technology and consolidate Dubai’s knowledge-based economy. D33 is bound to consolidate Dubai’s position as the gateway to MENA and APMEA regions. 

Final Words
“The future belongs to those who can imagine it, design it and execute it. It isn’t something you await, but rather create.” These words of His Highness Sheikh Mohammed Bin Rashid Al Maktoum portrays how Dubai gears up for the future. As he rightly puts it, Dubai is building a new reality for it’s people, a new future for it’s children and a new model of development.
Gearing up for the Next Normal
Raju Menon, Chairman and Managing Partner - Kreston Menon
The Next Normal
Every business was looking optimistic for a great 2020 at the beginning of the year, but now are facing a completely different scenario. The COVID-19 pandemic has severely affected businesses across every industry and geographical region. The norms of businesses have changed, be it remote working, changed customer preferences and priorities or radically transformed operational networks.
King Solomon said, “There is a time for everything! A time to break down, and a time to build up”. After every disastrous storm and earthquake and war comes a time to rebuild. Now is the time to gather the pieces and undo the damage.

There is still a huge amount of uncertainty about how and when the markets will bounce back, as different countries are impacted in different scales, and no certain cure for COVID-19 yet in sight. Few countries have controlled the spread, few are facing a second wave of infections while many other countries are still crippled by the spread of the virus. Economic activity has returned to normal in countries that have successfully controlled the coronavirus, while in the other countries the economic activity is still about 40% lower than before the pandemic.

We all would expect the economy not only to just get back on track and running but become stronger and more resilient in the process. A lot depends on how companies and leaders can reset for growth beyond the pandemic. The leaders should not fall into the pit of deriving plans to go back to January or February 2020 but should be brave to reimagine, rewire and reset their organizations to seize the opportunities thrown open by this unprecedented pandemic. They have to think very differently, reshape their portfolio and plan to do things quite differently as the future unfolds.

Redefine | Revive | Reset
As businesses start to emerge from the pandemic, the leaders need to focus on critical areas not only to offset the negative impact of the pandemic, but also to bring changes to the way they are going to operate in the future.

Redefine your Customer Relations
Beyond just selling products and offering services it is time for you to open a real time communication channel with your customers. This proactive mode of communication will redefine customer experience by giving them the confidence that you are adapting to the changed customer needs. Updates on the initiatives you have taken to ensure the safety of your team members as well as of the customers during this pandemic, will strengthen client relations.

When the whole economy was paralyzed due to the lockdown, Kreston Menon took the initiative to connect with our clients and to the public through multiple channels, such as phone calls, online meetings, emails, social media, and digital content. Our partners were there to address the concerns of our clients as we had decided this is not the time to disappear.

Revive Employee Communication
Human capital is the engine that keeps any company moving forward. The initial days of the pandemic brought lot of confusion and insecurity amongst the workforce. It is true that many were made redundant and many companies were forced to take drastic steps. The key to maintain the morale of the employees is to have open, honest and frequent communication which will bring clarity to the situation. Most companies had to switch to work-from-home during the lockdown. Majority of them have resumed work from office ensuring the safety of their employees. Wherever there was an open communication there was less confusion and employees were committed to stand with their employers. During this difficult time, commitment is mutual!

Reset your Business Strategies
Smart leaders are re-evaluating their strategies not only to position themselves to absorb the setbacks caused by the unprecedented economic collapse but also to tap the emerging opportunities thrown open by the same pandemic. Questions like, are our services still relevant, does our market strategy still work, do we need to have an alternate supplier base, do we have the needed capabilities and competencies for the Next Normal are to be answered.

It is time to do an introspection that will help you identify what went wrong and what you need to change. For example, companies who were totally dependent on China for supplies are now looking for multiple sources and more domestic suppliers. This has suddenly brought a new life into businesses in Far East, India Mexico and Central America. Indonesia and India stand to benefit from this as we see major investments flowing into these countries.

Only way to emerge stronger post-pandemic is to understand where you stand today and where you want to be. Though the global economy is still reeling and worldwide recovery is still not in sight, it is time for you to decide on how you are going to face the challenges and opportunities of tomorrow. We are here to partner with you in the process of preparing you to stay competitive. We are here for you!

Small Businesses and the Next Normal
Small businesses are the unsung heroes creating jobs and contributing considerably to every local economy. Be it florists, day care centres, coffee shops, groceries or restaurants – they keep the market ticking. But today in most markets, they are facing the challenge of a lifetime.
The Global State of Small Business joint report by the World Bank and the Organisation for Economic Co-operation and Development (OECD) reveals some startling global figures – 26% of SMBs had closed down between January and May 2020, while the percentages ran much above 50% in countries where strict lockdown was imposed.
According to the report, 61% of small businesses in the UAE are optimistic about their future businesses while 40 per cent of businesses have adapted to the digital mode and 25% of their sales were made digitally in the past months.
The AI Revolution in UAE Audit and Finance: From Compliance to Strategic Intelligence
Raju Menon, Chairman and Managing Partner - Kreston Menon
I have spent three decades in finance, and I can tell you what is happening right now in the UAE is unlike anything we have seen before. AI is not just another tool in the auditor’s kit. It is fundamentally changing what it means to work in finance.

When policy meets possibility

In April this year, something remarkable happened. The UAE Cabinet approved the world’s first AI-powered regulatory intelligence ecosystem. This is not about digitizing forms. It is about creating a system that monitors how laws impact our economy in real-time and can accelerate the entire legislative process by up to 70 percent. Think about what that means for those of us managing compliance. Regulatory changes that used to require weeks of manual review now adapt automatically.

The vision started in 2017 when we became the first country to appoint a Minister of State for Artificial Intelligence. According to the UAE Strategy for Artificial Intelligence 2031, we are aiming to cut government costs by 50 percent while boosting GDP by 35 percent. Those are not aspirational numbers. They are driving real infrastructure investments and regulatory clarity that allows us to move fast.

The creation of the Artificial Intelligence and Advanced Technology Council in January 2024 sent a clear message: this commitment comes from the top. For finance professionals, this matters because we are not experimenting in a regulatory vacuum. We have backing.

What I am seeing in the field

Walk through any major financial institution in Dubai today, and you will notice something different. Teams are smaller, but they are accomplishing more. Machine learning algorithms catch anomalies in financial statements with 95% accuracy, spotting issues that would slip past even the most diligent human reviewer after hours of work. Compliance audits that once took months now finish in 40% less time, with better results.

Look at Emirates NBD. According to McKinsey’s October 2024 analysis, they have built over 100 AI models with a team of 70+ specialists, targeting a five-to-seven times return on their AI investment. They deployed an internal legal tool that answers regulatory queries instantly. This is work that used to consume hours of senior legal counsel time. One regional bank saved AED 1.2 million annually after implementing AI fraud detection that reduced false positives by 40 percent.

These are not pilot projects anymore. This is how work gets done.


The three places AI changes everything

First, document processing. Our multilingual environment used to be a nightmare for standardization. Now AI extracts data from invoices, contracts, and statements across Arabic, English, and multiple other languages in minutes. Junior auditors who spent days on this work are now analyzing trends and advising clients.

Second, risk becomes predictive instead of reactive. We are navigating VAT, Economic Substance Regulations, and the new 9% corporate tax on profits above AED 375,000. AI models spot compliance issues before they become regulatory problems. The Central Bank’s Guidelines for Financial Institutions require transparency and human oversight in AI systems, and the leaders in our space have figured out how to deliver both.

Third, continuous monitoring replaces the month-end scramble. Finance teams get real-time alerts on spending anomalies, cash flow issues, and vendor irregularities. The week-long close process that used to shut down entire departments now runs quietly in the background, all the time.

Infrastructure makes the difference

At GITEX 2024, Dubai’s Financial Audit Authority launched three digital services that show where government auditing is headed. The Al Mo’ashir Dashboard provides live insights from auditing activities across government entities. The Financial Violations Reporting Platform enables instant reporting. This is not about catching problems after the fact. It is about maintaining continuous readiness.

The shift to e-invoicing and digitalized tax systems could have been overwhelming. Instead, AI platforms now reconcile transactions, validate VAT classifications, and flag issues before submission. Compliance has moved from quarterly fire drills to always-on systems.

The human side gets more important

Here is what surprises people: AI has not made finance professionals less important. It has made us more important, just in different ways. The technical knowledge still matters, obviously. But now we are interpreting AI insights, challenging algorithmic assumptions, and translating findings into strategy.

The UAE Charter for the Development and Use of Artificial Intelligence, launched in July 2024, established 12 principles for protecting community rights while enabling innovation. This framework recognizes something critical: as AI handles routine compliance, humans focus on the judgment calls that require experience, ethics, and strategic thinking. That is where the real value lives.


Where we go from here

A regional research shows 49% of UAE organizations actively deploying AI in finance functions, compared to just 35% globally. We are not just ahead. We are defining what is possible. The government’s goal of ensuring one in three STEM graduates have AI expertise by 2031 means this advantage compounds over time.

I have watched enough technology transitions to know this one is different. The companies that treat AI as an experimental side project will spend the next five years catching up to competitors who moved decisively. The regulatory framework supports innovation. The infrastructure exists. The talent is coming.

The only question is whether you are ready to lead this transformation or watch it happen to you. The tools work. The policy environment encourages adoption. Success comes down to leadership.
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