The World Trade Organization (WTO) conducted a review of the trade practices of the United Arab Emirates (UAE) on 1 and 3 June 2016. The review was conducted on the basis of a report prepared by the WTO secretariat.

Real GDP growth in the UAE averaged 4.5% annually between 2010 and 2014 but declined to 3.1% in 2015. Growth has been led in recent years by non-hydrocarbon sectors and this indicates successful diversification of the UAE economy. The oil price fall in 2014 affected government revenues in 2015 and a fiscal consolidation program was introduced to control public spending.

Trade and investment policy is focused on diversification with emphasis on improving competitiveness and on high technology sectors. The free zones and special economic zones offer advantages for investment with no corporate or personal income taxes, exemptions from customs duties and exemptions from some domestic regulations. Foreign ownership in the zones is not limited to 49% as it is outside the zones. Around two thirds of exports of non-oil products are from the free zones.

The UAE is a member of the Gulf Cooperation Council (GCC) and applies the Common Customs Law and common external tariff and other common rules on trade. The GCC is a party to free trade agreements with the EFTA states and with Singapore. Under the GCC common external tariff most products are either duty free or subject to a 5% tariff. Almost all tariffs are below their bound rate (the bound tariff is the maximum level to which the MFN tariff could rise on a given commodity). There are however 19 product lines with a minimum specific duty (so the ad valorem rate on these could be greater than the 200% bound duty).

The customs authorities of each Emirate are responsible for applying the GCC Common Customs Law. Dubai and Abu Dhabi have introduced electronic systems for customs declarations. The UAE is to launch an authorized economic operator (AEO) program, with a pilot program beginning with Dubai Customs.

Owing to the successful diversification strategy the UAE has managed the consequences of the low oil price while maintaining growth and investment. The UEA may need to speed up reforms such as full implementation of competition policy and easing restrictions on foreign investment, including relaxing the requirement for majority ownership by UAE nationals, and further improvements to the business climate.