The implementation of Islamic Sharia Law in the UAE, which rejects interest in loans and business transactions (known as Riba), differs notably from the practices of foreign banks in the country, particularly in Dubai. While Islamic banks adhere to a unique set of regulations and business approaches, foreign banks and other banks such as the esteemed Arab Bank, stand out for their excellent customer services and trade flexibility.

In the UAE, banks, both Islamic and foreign, prioritize stringent cybersecurity measures and overall account security. Capitalizing on the prevalence of foreign banks and the adaptability of the country's banking system, Sheikh Mohammed, the ruler of Dubai, recognized the need to ensure economic benefits by introducing an annual tax on foreign banks. This tax, equivalent to 20 percent of income, will be applicable in the UAE.

The law outlines specific rules for calculating taxable income, controls for submitting tax returns and making payments, procedures for auditing tax returns and voluntary declarations, as well as the duties and processes related to the tax audit. Furthermore, the law delineates the rights of the taxable entity, in this case, the foreign bank and its branches licensed by the Central Bank of the United Arab Emirates to operate in Dubai.