What activities to be conducted for ESR in Dubai, UAE?


As part of the Dubai’s commitment as a member of the OECD Inclusive Framework and in response to an assessment of the Dubai’s tax framework by the European Union Code of Conduct Group on Business Taxation, Dubai introduced a Resolution on the Economic Substance on 30 April 2019. The Regulations require Dubai onshore and free zone companies and other Dubai business forms that carry out any of the Relevant Activities to maintain an adequate economic activity in the Dubai relative to the activities they undertake.

Activities to be conducted in Dubai, Abu Dhabi, Sharjah, UAE

Banking Business

  • Raising funds, managing risk that includes credit, currency, and interest risk.
  • Taking hedging positions.
  • Providing loans, credit, or other financial services to customers.
  • Managing capital and preparing reports for investors or any government authority with functions relating to the supervision or regulation of such business.

Insurance Business

  • Predicting and calculating risk.
  • Insuring or re-insuring against risk.
  • Providing Insurance Business services to clients.
  • Underwriting insurance and reinsurance.

Investment Fund Management Business

  • Taking decisions on the holding and selling of investments.
  • Calculating risk and reserves.
  • Making decisions on currency or interest fluctuations and hedging positions.
  • Preparing reports for investors or any government authority with functions relating to the supervision or regulation of such business.

Lease-Finance Business

  • Agreeing with funding terms.
  • Identifying and acquiring assets to be leased.
  • Setting the conditions and duration of any financing or leasing.
  • Monitoring and revising any agreements.
  • Managing any risks.

Headquarters Business

  • Taking management decisions.
  • Incurring operating expenditures on behalf of group entities.
  • Coordinating group activities.

Shipping Business

  • Managing crew that includes hiring, paying, and overseeing crew members.
  • Overhauling and maintaining ships.
  • Keeping a watch and tracking shipping.
  • Managing the order and delivery of the goods and overseeing voyages.

Intellectual Property Business

(a) where the Intellectual Property Asset is a –

  • Patent or an asset that is similar to it, research, and development.
  • Non-trade intangible like trademark, branding, marketing, and distribution.

(b) If the Relevant Activity conducted by a Licensee that is a High-Risk IP Licensee, the Activity must include any of the following additional activities:

  • Taking strategic decisions and managing the principal risks related to the development and subsequent exploitation of the intangible asset.
  • Making the strategic decisions and managing the principal risks relating to the acquisition by third parties and subsequent exploitation and protection of the intangible asset.
  • Carrying on the ancillary trading activities through which the intangible assets exploited that leads to the generation of income from third parties.

Distribution and Service Center Business

  • Transporting and storing parts, materials, or goods ready for sale.
  • Managing inventories and Taking orders.
  • Providing consulting or other administrative services.

For enquiries, call +971 5679 52590 / E-mail:


Related Articles:

ESR on Banking and Insurance Business

What are the matters a Licensee should consider under ESR?

Penalties for Non-Compliance with Economic Substance Regulations

Requirements to meet Economic Substance Test

Economic Substance Regulations FAQs and Filing Requirement

How to file ESR Notification?