1.875
%
Positive
7
mm boe
72
%
The political environment is stable, and the UAE maintains contract integrity. ADNOC's capacity expansion and the moves by Ras Al Khaimah and Sharjah to make fiscal terms more attractive support our view, although the new corporate tax adds cost. Outlook maintained because the stable, investor-friendly environment is unchanged. Outlook: Positive. Risk premia unchanged at 1.875%.
October 7, 2026
Middle East
mm bbl
bcf
Middle East, bordering the Gulf of Oman and the Persian Gulf, between Oman and Saudi Arabia.
Concession
Negotiations for exploration and production acreage are conducted directly with the Governments of the individual Emirates or with the Petroleum Councils where they exist. Detailed fiscal terms are negotiable on a case-by-case basis. Although rare, a direct state participation option is limited to Abu Dhabi and Sharjah where the State can exercise a participation option of up to 60%; to date, this option has only been exercised on three occasions. The concession-based fiscal regimes are usually fairly simple, with royalty and corporate income tax payable, both of which may either be fixed rates, or sliding-scale rates based on production levels.
The UAE is a stable, wealthy federation and a leading regional business hub. US and UK guidance cite liberal FDI rules, free zones, removal from the FATF grey list in 2024 and the UK–GCC FTA, while noting a new corporate tax and enforcement of sanctions compliance. The EIA notes that ADNOC has raised oil capacity towards 5 million b/d and is expanding abroad via XRG. Ruwais LNG is under construction, and the Barakah nuclear plant is fully operational.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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