UAE Free Zones Tighten Financial Reporting Requirements
The United Arab Emirates continues to tighten control over corporate transparency. More and more free economic zones are introducing mandatory requirements for the preparation and submission of financial statements, audits and confirmation of economic presence.
Whereas many free zones previously allowed companies to operate without regular reporting, today there are fewer and fewer such zones. Regulatory authorities are gradually moving towards uniform standards, requiring residents to submit annual financial reports, have them audited, and sometimes provide additional supporting documents.
Companies that have not previously dealt with audited reporting will be required to prepare financial statements and undergo mandatory auditing in the near future.
An example of such changes is the IFZA free zone, where, starting from 30 September 2025, the provision of audited financial statements has become an integral part of the license renewal process, and without it, the license will not be renewed. For companies that already have audited reports ready, the regulator recommends including them in the renewal application, as these documents can also be used for other business processes and to ensure compliance with legal requirements.
It is expected that within the next two years, the requirement to prepare and submit regular audited financial statements will become standard for the vast majority of UAE free zones. This standard will allow companies to plan their internal processes in advance, improve their accounting systems and reduce the risk of fines and non-compliance with regulatory requirements.
In light of these changes, companies are advised to assess their obligations to local authorities in advance and, if necessary, seek professional advice on preparing audited financial statements to ensure full compliance with the new requirements.
If your company has questions about the new financial reporting requirements or needs assistance in preparing and submitting audited financial statements, you can always contact our team of experts, who will help you organize all processes quickly, correctly and in full compliance with UAE requirements.
