Previous research has reported a positive association between corporate disclosure and the efficiency of securities markets (Barrett 1977; Kothari 2001; Gao 2008). This efficiency depends on the availability and accessibility of information at a low transaction cost. Disclosure has been considered as essential to the economic development and growth of emerging economies by Gill and Tropper (1988). Despite the importance of corporate disclosure, little research has been conducted in the Gulf Cooperation Council (GCC) countries, including the UAE. The purposes of this study, therefore, are to: (a) assess the current level of corporate disclosure; (b) investigate whether firms in the UAE disclose what different user-groups need; and (c) examine the relationship between a number of firms’ characteristics (industry type, listing status, profitability, liquidity, market capitalization, foreign ownership, composition of board of directors, and audit committee) and the level of disclosure. To achieve the first objective a disclosure index, comprising 317 information items from statutory and IFRS requirements, was developed and matched against the annual reports of the 113 sample UAE firms. The second phase of this study involved the administration of a survey research instrument which was sent to eight financial reporting user-groups to ascertain their perception on corporate disclosure and their needs. The impact of various firm’s characteristics on the extent of corporate disclosure was tested using multiple regression analysis. Our results revealed that the overall disclosure level of UAE firms ranged between low to moderate, with an average disclosure level of 57%, and that none of the firms in the sample complied with all the disclosure requirements of the mandatory items. The banking sector scored the highest level of compliance with mandatory requirements. The study showed that user-groups view annual reports as the most important source of information. However, 56% of users believed the current level of disclosure to be insufficient. Most of the sample companies failed to disclose adequate information relating to long-term performance and future forecasts. The study also found that the level of disclosure varies depending on certain firm’s characteristics. Results of the univariate and multiple regression analysis identified that listing status, industry type, and market capitalization were significant variables in explaining variation in the level of disclosure among UAE firms. The study concluded with the acknowledgment of some limitations associated with this kind of research. Implications, recommendations and potential future research avenues were finally identified.