One of the most important decisions that business owners looking to set up a new business in the UAE have to make, is whether to establish their company in a free zone or on the mainland. Both options have advantages, but each serve a different strategic purpose that can impact company operations, market access, cost, and regulatory obligations. Careful consideration and an early-stage strategic assessment of the company’s business model, target market, and long-term growth objectives are therefore essential.

On February 23, 2026, the UAE Ministry of Finance (MoF) announced the issuance of official electronic invoicing guidelines in preparation for the transition to a unified mandatory e-invoicing system. The guidelines are published to provide businesses with more transparency regarding operational expectations and compliance obligations under the new framework.

To strengthen its investment activity appeal, the Dubai International Financial Centre (DIFC) has rolled out new regulations that expand the framework for how investors can manage capital within its jurisdiction.

Saudi Arabia is set to launch a new Fashion District in Riyadh, an initiative developed through a partnership between the Saudi Fashion Commission and Four Directions, a real‑estate development company. The project aims to foster growth in the regional fashion industry, strengthen the creative economy, and attract both local and international investment.

On December 12, 2025, Saudi Arabia introduced the Financial Oversight Law under Royal Decree No. (M/122), replacing the long‑standing Financial Representatives Law and introducing a modern, risk‑based framework for oversight of public funds

From January 1, 2026, Saudi Arabia is set to introduce a new tiered tax system on sweetened drinks. The revised methodology for calculating tax for sweetened beverages, which was approved by the GCC’s Financial and Economic Cooperation Council, is part of a wider effort in the region to promote public health and encourage lower sugar consumption.