Lawyers in Dubai and Abu Dhabi

Incorporated or unincorporated, joint venture or consortium: how UAE construction partners split the work, and why members can stay jointly liable to the employer for the whole project.

Convertible notes and SAFEs are common law instruments, and whether they work for a UAE startup depends on where the company is incorporated. In DIFC and ADGM both are enforceable. In mainland UAE a SAFE is not recognised, so founders lean on convertible notes or convertible preference shares. This guide covers the instruments, the DIFC or ADGM holding structure that makes a round enforceable, and the filings needed on conversion.

Cabinet Decision 98 of 2024 cancelled UAE Economic Substance notifications and reports for financial years ending after 31 December 2022. The regime still governs the historical period from 2019 to 2022, where unfiled returns and penalties remain live. The substance test itself now sits inside corporate tax, where a Qualifying Free Zone Person must show adequate UAE substance for the 0 per cent rate.