In 2003, the Jebel Ali Free Zone Authority (JAFZA) issued regulations governing offshore companies. In 2006, Ras al-Khaimah followed and issued its own offshore legislation (formerly RAK/RAKIA, now RAKICC).

Companies incorporated under these offshore legislations are not allowed to have any business activities within the UAE. However, they may have bank accounts in the UAE and they are also allowed to own property within the UAE (restrictions apply).

The offshore regulations are in line with the latest international practices along the lines of other typical offshore locations. Every offshore company must, through a registered agent, maintain a registered office which can be anywhere in the UAE, i.e. outside the offshore zone.

With the introduction of corporate taxes (the standard UAE tax system applies), offshore companies have lost some of their advantages. However, they still are flexible international instruments that serve as special purpose vehicles (SPV) to achieve objectives such as