Are savings interest and dividends taxed in UAE?

Everyday Tools

Updated: November 2026

UAE Savings & Compound Growth Calculator

Project compound interest growth on your UAE bank deposits, National Bonds, or international investment portfolios.

Initial Deposit (AED)

AED

Monthly Contribution (AED / month)

AED

Expected Annual Return Rate5.5%

Bank Fixed Deposit (~4-5%)National Bonds (~5-6%)Global Index Funds (~8%)

Investment Horizon5 Years

100% Tax-Free Compound Growth

Projected Accumulated Wealth

AED 164,076

Total Contributed: AED 140,000

Total Principal Saved:AED 140,000

Compound Interest Earned:+AED 24,076

Total Multiplier:1.17× capital growth

No capital gains tax on UAE investments

Calculation Methodology & Legal Basis

Standard compound interest formula: A = P × (1 + r/n)^(n*t) + PMT × [((1 + r/n)^(n*t) - 1) / (r/n)], accounting for monthly compounding frequency in AED with zero capital gains tax.

Worked Example

Starting with AED 20,000 and contributing AED 2,000 monthly at an expected 6% annual return: After 5 years, total contributions of AED 140,000 grow to AED 165,850 (AED 25,850 in compound interest).

Official Government & Regulatory Sources

National Bonds UAE — Sharia-compliant savings and investment companyVisit Official Portal

UAE Savings & Compound Growth Calculator — Frequently Asked Questions

No. Capital gains, dividends, and bank deposit interest are 100% tax-free for individuals residing in the UAE.

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