Outsourcing web development to India from United Arab Emirates

IST is 1h30m ahead of the UAE. Plan calls around both teams' working hours. The UAE federal government's working week is Monday–Friday, with Friday a half day and Saturday–Sunday the weekend; check the hours that apply to your own business.

The UAE Personal Data Protection Law, Federal Decree-Law No. 45 of 2021, prohibits processing personal data without the owner's consent except in listed cases and sets requirements for cross-border transfers.

Under Article 22 of the UAE Personal Data Protection Law (Federal Decree-Law No. 45 of 2021), transfers outside the UAE may take place in cases approved by the UAE Data Office to a country with personal data protection legislation or a relevant data protection agreement with the UAE. Where the destination has no adequate level of protection, Article 23 permits transfers only in listed cases, including express consent or certain contracts.

Different rules apply in financial centres. India is not on the DIFC Commissioner of Data Protection's list of jurisdictions with adequate data protection, so a DIFC entity sending personal data to India relies on exceptions in Article 27 of the DIFC Data Protection Law 2020, such as the DIFC Standard Contractual Clauses. The ADGM Data Protection Regulations 2021 permit transfers through routes including appropriate safeguards or a listed derogation.

Health data has further restrictions. Article 13 of UAE Federal Law No. 2 of 2019 on the use of ICT in health fields restricts storing, processing or transferring health data about medical services in the UAE outside the country. Ministerial Decision No. 51 of 2021 permits exceptions for listed purposes, most with conditions such as patient consent and encryption.

India's rules also have a commencement date. Under section 17(1)(d) of the DPDP Act, 2023, most Data Fiduciary obligations and certain other provisions do not apply when a person in India processes data of individuals outside India under a contract with a person outside India; responsibility for compliance and reasonable security safeguards still apply. Those provisions come into force on 13 May 2027.

When a VAT-registered UAE business buys services from a supplier resident outside the UAE and the place of supply is in the UAE, the supplier does not charge VAT. The buyer must self-account for VAT under the reverse charge mechanism and may be able to recover it as input tax under the normal rules.

The UAE Electronic Invoicing Guidelines (version 2.0, 26 October 2026) state that imported Concerned Services accounted for under the VAT reverse charge in Article 48 of the VAT Decree-Law are not subject to electronic invoicing requirements.

In India, an export of services is a zero-rated supply under section 16(1) of the Integrated Goods and Services Tax (IGST) Act, 2017. To qualify as an export under section 2(6), the supplier must be in India, the recipient and place of supply must be outside India, payment must be received in the permitted form, and the parties must not be merely establishments of a distinct person.

Agree the payment arrangement with the supplier before invoicing. Under the Reserve Bank of India's Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, an Indian exporter must realise and repatriate the full value of exported services within nine months from the invoice date, or twelve months if invoiced or settled in Indian rupees; its Authorised Dealer bank may allow more time on request.

If a third party will pay, raise that with the supplier. Its Authorised Dealer bank may permit third-party payment if satisfied that the transaction is bona fide.

India has ratified the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. It declared that it applies the Convention only to awards made in another contracting State and to differences considered commercial under its national law.

Set out your requirements before work starts. Arabic is the official language of the UAE, while English and other major languages are also widely used.

• Agree call times with the Indian team.
• Identify any personal data you plan to share.
• Check the transfer rules that apply to your business.
• Check the restrictions if the project involves health data.
• Discuss the VAT treatment of the services.
• Agree the payment arrangement and identify who will pay.
• Review how contract disputes will be handled.
• Specify the languages needed for the project.