The move comes at a time when the Gulf region's fine art market – and the fees and assets involved – continues to see competition.

As jurisdictions continue to battle for market share in attracting high net worth individuals, their assets and international capital, Abu Dhabi has launched a programme to attract fine art transactions.

Earlier in February, the Department of Culture and Tourism – Abu Dhabi (DCT Abu Dhabi) said it would fully waive the standard 5 per cent customs duty on eligible works of art as long as they stay in the jurisdiction for at least three years. It is also extending a temporary import timeframe, mandating a three-year minimum stay with a six-month export window.

“This programme reinforces Abu Dhabi's position as a magnet for UHNW individuals and single-family office superhub, fostering economic growth and cultural enrichment by aligning its policies with the international art community's evolving needs,” M/HQ, a multi-fiduciary platform, said in a recent note. 

The international art market, operating traditionally in hubs such as London and New York, and now seeing competition from centres such as Hong Kong, continues to be a barometer of how affluent wealthy individuals feel and is a significant investment area. According to the Art Basel and UBS Global Art Market Report 2025, the total market for fine art sales stood at $57.5 billion, down from 2023 but transaction volumes rose.

IFCs competing as cross-border hubs also see a thriving art market as both a valuable indicator of their health, and as venues that clients enjoy. Major banks, such as Citigroup, Deutsche Bank and UBS, have specialist advisors working with clients in this area. There is also a specialist market for art-based lending. The art world has also had to evolve, coming under increasing regulatory oversight, for example, from the European Union, because it is prone to potential misuse by money launderers. 

According to an article for Art Basel, issued on 27 January, the Gulf region's art market is busy. "The headlines are worth repeating: the inaugural editions of Art Basel Qatar and Frieze Abu Dhabi each launch this year and, as of last year, Sotheby’s is holding regular sales in Riyadh and Abu Dhabi. European galleries including Colnaghi, Zidoun-Bossuyt, and Taymour Grahne Projects have all established branches in the Gulf, while new local galleries have sprung up in Dubai and Abu Dhabi among other places."

UAE’s art laws
Separately, the United Arab Emirates – of which Abu Dhabi is the largest emirate – has enacted a law regulating and empowering the arts sector. This law targets not-for-profit art institutions, offering a simplified licensing process. M/HQ said in a recent opinion article, “Gulf Art Investment – Quo Vadis?” that the way a new legal entity, “not-for-profit art institution,” is not clear, and its practical impact so far is “non-significant.”

M/HQ said Middle East jurisdictions are pushing hard to increase their profile in the art markets. The firm noted that a new freeport facility is set to open soon in Dubai. Situated at Dubai South Freezone, the facility provides the option of artworks storage in two distinct locations within two separate zones: in a designated zone; and on the tarmac of the airport's jet tarmac area, within an airfield zone. The airfield zone “falls outside the jurisdiction of any customs authority, offering artwork owners a high degree of flexibility. Artworks entering both zones are not subject to VAT or Customs Tax,” the report said. (The author of the report is Arielle de Bartha-Dubois, an art lawyer, registered with the Geneva bar; legal consultant in the UAE.)

"The art ecosystem in the UAE and the Gulf region is in full-growth mode. Abu Dhabi, through the construction of its 'museums' island' and the commissioning of artworks for the city, is evolving into a cultural hub and future destination, bolstered by strong government support for the arts. Sharjah, with its art biennial and institutions, actively promotes and supports the arts," the report said.

Waiver programme
DCT Abu Dhabi said in its announcement that the waiver programme “offers a unique framework for high net worth collectors, family offices seeking a secure and expertly governed environment for the preservation of significant artworks valued from AED10 million ($2.72 million). It also ensures due diligence, documented provenance, ownership transparency, and alignment with applicable legal and compliance standards." 

A specialised committee, comprising global experts will evaluate incoming submissions to ensure alignment with the programme's standards and DCT Abu Dhabi's commitment to safeguarding cultural assets of “exceptional significance,” it said.

M/HQ said the 5 per cent import VAT and other applicable taxes remain in force. Movement [of artworks] to other emirates within the three-year period may violate terms, potentially trigger original duties and penalties, and typically require special committee approval.

Positive impact
“Abu Dhabi's duty waiver programme is a strategic move to position the Emirate as an attractive destination for HNW collectors, family offices, and private institutions, reducing friction at the point of import and signalling itself as a premier location for acquisition, storage, and long-term holding,” Philip Hoffman, founder and chairman, The Fine Art Group, told WealthBriefing yesterday.

“The Gulf has historically been more complex from a logistics and customs standpoint compared to established hubs like the US and Europe. This programme directly addresses that, bringing Abu Dhabi into more competitive alignment with those markets.

“Fine art's exemption from the US `Liberation Day’ tariffs, by virtue of its classification as `Informational Materials’, was a fortunate but important distinction. Jewellery and other high-value collectibles were not exempt, which caused real market disruption and pushed buyers toward domestic acquisition rather than casting an international net,” he said. 

European VAT reform has been “quietly but meaningfully positive for the market”, Hoffman said. “France has aligned its sales VAT with its reduced import VAT rate at 5.5 per cent, while Italy has gone further, moving to a flat 5 per cent on both import and sales, now the lowest rate for artworks in the entire EU,” he said.

After Brexit, the UK sits outside the EU’s framework and it no longer has the same art market attractions for buyers located in the EU, Hoffman added.