The United Arab Emirates Ministry of Finance announced a corporate tax exemption for non-commercial sports entities under Cabinet Decision No. (1) of 2026. This is a major step to support UAE's sports sector and position it as a global hub. Under the new rule, international sports entities, national sports organisations, and related bodies that operate on a non-commercial basis can fully avoid corporate tax. These organisations must focus mainly on promoting, managing, or developing sports and be officially recognised by the Ministry of Sports or a similar authority. To qualify, a sports entity cannot engage in unrelated business activities and must use all income and assets only for sports objectives or necessary expenses. Profits or assets cannot benefit members or stakeholders personally, except certain approved public bodies. Sports organisations must apply to the Federal Tax Authority (FTA) with documents proving their eligibility. The FTA will check their contribution to sports, recognition status, and compliance before approving the tax-exempt status. This exemption encourages more investment and growth in UAE's sports scene. It aims to expand participation, support youth programs, and attract international federations. The UAE has recently hosted major events like Formula 1, football, golf, and motorsports, boosting tourism and economic activity. Officials say this move fits the UAE’s broader goal to grow the sports sector’s role in the national economy, generate jobs, and develop local talent. It also aligns with efforts to diversify beyond oil and focus on knowledge, tourism, culture, and sports. Similar tax exemptions exist for education, charity, culture, and healthcare under UAE law. The new sports exemption targets non-profit sports groups that work for the public good. For clubs, federations, and sports bodies, this exemption frees up funds previously spent on taxes. Smaller sports organisations could benefit greatly, gaining more stability and resources for growth. However, applying entities must meet strict verification and reporting rules to prevent misuse. Authorities promise support for organisations navigating these processes. Overall, the UAE’s decision reflects a strong belief in sports as a vital national asset. By linking tax policy with sports development, the Emirates hope to nurture a vibrant sports ecosystem, attract global partners, and boost economic diversification through sport.