The United Arab Emirates (UAE) maintains a tax regime in which most enterprises do not pay federal corporate income tax. This tax policy has played an important role in attracting foreign investment and promoting economic growth. While there is no federal corporate income tax, individual emirates in the UAE, such as Dubai and Abu Dhabi, maintain the right to enact their tax laws. Some emirates have imposed special fees and taxes on various activities, however, these are often sector-specific rather than a general corporate income tax. The UAE also has several free zones that offer businesses various benefits, such as temporary exemptions from corporate income tax. These free zones are purposefully created to encourage foreign investment and economic development in specific industries. In addition, the UAE has signed double tax treaties with several nations, reducing the potential of income double taxation.