Despite the unified objective of ensuring the accuracy and reliability of financial information, the requirements for mandatory audits of companies in the United Arab Emirates differ depending on the jurisdiction — between the mainland (Mainland) and the free zones (Free Zones).
On the mainland, audit regulation is governed by the Federal Decree-Law No. 32 of 2021 on Commercial Companies. According to Article 27 of this Law, all limited liability companies (LLCs) and joint stock companies are required to conduct an annual audit of their financial statements. The results of the audit must be presented to the shareholders and, where necessary, to the competent government authorities.
In the free zones, the audit requirement is determined by the applicable Free Zone regulations. Each Free Zone authority — such as Dubai Multi Commodities Centre (DMCC), Dubai Integrated Economic Zones Authority (DIEZ), Abu Dhabi Global Market (ADGM), and others — issues its own company regulations governing accounting and audit obligations.
Where the Free Zone regulations expressly require an annual audit, companies...