EU FDI screening rules are changing. Critical tech sectors — including AI, quantum, and semiconductors — will face broader scrutiny, with some intra-EU deals subject to review if ultimate control sits outside the EU.

Phase-one reviews could take up to 45 days, which adds meaningful timeline risk for fundraising or M&A processes. EU FDI reforms may extend screening for critical technology deals to 45 days, while UAE free zones such as DIFC and ADGM continue to offer 0% corporate tax on qualifying income.

This is one reason more European AI scale-ups are testing dual structures — combining UAE free-zone operations with EU entities. The UAE structure provides speed, tax efficiency, and access to regional capital, while the EU entity maintains market access and regulatory continuity.

What the Data Says
Early-stage tech investment continues to grow across the region, with AI, fintech, and climate tech leading activity. The UAE, Saudi Arabia, and Egypt remain the most active markets for deals and capital deployment. GGH references key takeaways from Wamda’s annual report on tech investing in the Arab World for additional context.