Five Misconceptions About Laws in Abu Dhabi and Dubai

Many people believe that the laws in Abu Dhabi and Dubai differ significantly. In reality, most regulations are set at the federal level and apply to all seven emirates. Yet, these misconceptions persist. It’s time to clarify the five biggest myths.

Alcohol Only in Hotels in Abu Dhabi? Not True

A common myth is that alcohol in Abu Dhabi may only be served in hotels. This is incorrect. In areas such as Hudayriat and Saadiyat, there are numerous restaurants and bars licensed to serve alcohol. Dubai simply has more beach clubs and nightclubs due to a higher number of licences, but the basic rule is the same.

Taxes Would Differ Per Emirate

Another misconception is that tax rules in Dubai and Abu Dhabi are different. The truth is that both income tax and corporate tax are regulated federally. Therefore, if there is a change in legislation, it applies to all emirates simultaneously. Only certain free zones, such as the DIFC in Dubai, sometimes have exceptions.

Abu Dhabi Would Be Stricter

Many people have the impression that Abu Dhabi is more conservative and therefore has stricter laws. In practice, the laws are virtually identical. What does differ is the atmosphere. Abu Dhabi is quieter, less focused on tourism, and more oriented towards families and professionals. You see less glitz and glamour, but that has nothing to do with stricter regulations.

Foreigners Cannot Buy Property in Abu Dhabi

This is also not true. In freehold areas, foreigners are permitted to purchase property, just as in Dubai. The only difference lies in the property transfer fee: in Dubai you pay 4%, while in Abu Dhabi it is 2%.

Visa Rules Depend on the Emirate

Finally, some people think that immigration and residency permits differ per emirate. In reality, these matters are regulated at the federal level. This means, for example, that the 10-year Golden Visa for property from AED 2,000,000 is valid in all emirates, including Abu Dhabi.