UAE Announce Corporate Tax Exemption for Non Commercial Sports Bodies

The United Arab Emirates has introduced a targeted corporate tax exemption for qualifying non commercial sports entities, in a move aimed at strengthening the nation’s position as a global sports hub and fostering sustainable growth across its sports ecosystem. Announced by the Ministry of Finance, the policy measures reflect a strategic approach to align fiscal frameworks with broader national sports development objectives.

Under the new framework, international sports organisations, regional sporting bodies and ancillary entities that operate on a non commercial basis will be eligible for corporate tax exemption, provided they meet strict eligibility criteria. Eligible entities must demonstrate a primary focus on sport promotion, management or development at the international or regional level, and must be formally recognised by the Ministry of Sports or another competent authority.

The reform is designed to elevate the contribution of sport to the national economy while fostering an environment conducive to international sporting collaboration. Government officials said the exemption aligns with best international practices and will help attract more global sports organisations, major events and development initiatives to the Emirates, building on the presence of international federations already headquartered in the UAE such as the International Cricket Council (ICC).

Importantly, the policy includes safeguards intended to prevent misuse of the tax benefit. Entities must ensure that all income and assets are used exclusively to advance their core sporting objectives or to cover necessary related expenses. Any personal distribution of funds to founders, trustees or members is prohibited unless beneficiaries are qualifying public benefit or government related organisations.

The introduction of this tax incentive underscores the UAE’s commitment to enhancing the business environment for sport, particularly at a time when global competition for events, federations and elite training facilities is intensifying. By reducing financial barriers for non commercial entities, policymakers are signalling support for grassroots development, international federations and non profit sport organisations that contribute to community engagement and high performance pathways.

Industry observers expect the exemption to encourage deeper investment in sport infrastructure and programming, while elevating the UAE’s profile as a destination for sport governance, innovation and strategic partnerships.