The double taxation agreement is the first between these two countries and was signed on 12 April 2016 and came into force on the 25 December 2016.  It contains important provisions to assist in determining the corporate residence of a company and confirms that there will be no withholding tax on dividends payable by a company resident in either of these countries to a company resident in the other.

It also allows UAE residences to claim exemption from UK income tax providing certain conditions are met and clarifies the position of employees with regards to HMRC rules.

The treaty is intended to enhance bilateral trading between the two countries and is welcomed due to the increasing mobility and collaboration between the two nations.