In the UAE, transfer pricing compliance is mandatory for all businesses engaging in transactions with related parties or connected persons to ensure they adhere to the “arm’s length principle.” While basic disclosure is required for all, formal Transfer Pricing documentation (Master and Local Files) becomes mandatory when a company’s annual revenue exceeds AED 200 million, or if the company is part of a multinational enterprise group with consolidated revenue exceeding AED 3.15 billion. Proper documentation is essential to avoid penalties and ensure audit readiness.