Compulsory social security activities

Under Ministerial Decision No. 229 of 2025, compulsory social security is categorized as a sovereign function. While Government Entities are 'Exempt Persons' under Article 4, any private sector participation or outsourced administration of these funds is treated as an 'Excluded Activity' for Qualifying Free Zone Person status to prevent the erosion of the tax base through public-service outsourcing.

Audit Red Flag

Misclassification of private pension fund management or commercial insurance brokerage as 'compulsory social security' to claim sovereign exemption.

Which UAE zones permit this activity?

Scout checks the current permission status for this activity across every UAE zone against your specific structure.