weighted score 3.3 · nine dimensions
Country Risk Profile
UAE
Sourcing risk, regulatory exposure and audit intelligence for UAE-origin supply chains.
Forced & child labour
3
Kafala reforms have improved labour mobility. Residual structural risks for low-skilled migrant workers in construction and domestic work. Not listed on ILAB forced labour goods list.
Worker rights & FOA
4
ILO C087 and C098 not ratified. Independent trade unions not permitted. Government-facilitated labour committees provide limited representation. Kafala reforms ongoing.
OHS & audit transparency
3
MOHRE workplace safety regulations in place. Free zone employers generally maintain higher OHS standards. Audit access is generally possible for international compliance bodies.
Food & product safety
2
ESMA product standards well-enforced. Halal certification framework established. Food safety standards aligned with Codex Alimentarius. Low RASFF alert rate for UAE-origin products.
Environmental & regulatory
2
COP28 host with net zero 2050 commitment. Low deforestation risk. No EUDR commodity exposure. Environmental regulatory framework improving but enforcement variable outside free zones.
Governance & anti-corruption
3
TI CPI 68/100 — strongest in the Gulf region. DIFC and ADGM provide independent regulatory frameworks. Federal anti-corruption legislation strengthened in recent years.
Tariff & preferential access
7
No EU FTA. GCC common external tariff 5%. MFN rates apply for EU-bound goods. Re-export hub positioning does not confer preferential origin for EU customs purposes.
Non-tariff barriers
3
ESMA conformity assessment requirements apply. Halal certification required for food products. Free zone regulatory environment is streamlined with minimal non-tariff friction.
Supply chain traceability
3
Re-export hub status creates origin traceability challenges. Goods transiting UAE free zones may obscure true country of origin. Enhanced due diligence recommended for re-exported goods.
Labour & Social Risk
Labour & Social Risk
- Kafala system
- The UAE has reformed its kafala (sponsorship) system since 2020, introducing labour mobility permits and removing the requirement for employer consent to change jobs. However, structural power imbalances remain — particularly for lower-skilled migrant workers in construction, domestic work, and hospitality.
- ILO conventions
- UAE has not ratified ILO C087 (Freedom of Association) or C098 (Right to Organise and Collective Bargaining). Independent trade unions are not permitted. Worker representation is limited to government-facilitated labour committees.
- Wage protection
- Wage Protection System (WPS) requires electronic salary payments and is monitored by MOHRE. Compliance is improving but enforcement gaps persist for smaller employers and informal arrangements.
Trade & Regulatory Exposure
Trade & Regulatory Exposure
- EU FTA status
- No EU-UAE bilateral FTA. GCC-EU FTA negotiations ongoing since 1990 without conclusion. MFN tariffs apply. GCC common external tariff of 5% on most imports.
- Re-export traceability
- UAE is a major re-export hub — goods originating in sanctioned or high-risk countries may be re-exported through UAE free zones, creating traceability challenges for EU buyers under due diligence obligations. Enhanced origin verification recommended.
- ESMA standards
- Emirates Authority for Standardization & Metrology (ESMA) enforces product standards including the Emirates Conformity Assessment Scheme (ECAS). Free zone compliance infrastructure is strong, with internationally accredited testing laboratories.
- Anti-corruption
- TI Corruption Perceptions Index 2024: 68/100 — relatively strong for the region. Federal anti-corruption framework has been strengthened. DIFC and ADGM have independent regulatory and enforcement capacity.