With unrivaled access to the potential of the world economy, the UAE has established itself as a global innovation leader and as a highly connected business-friendly hub between East and West. A long-term international outlook, liberal business policies, strong governance and a willingness to meet the needs of the business world have catapulted this country onto the global stage. It has proven to be an efficient, secure, and sustainable network ecosystem for accelerated growth. This makes it best for entrepreneurs for setting up a business in Dubai. It is backed by committed investments in key sectors for the growth and development of Smart Cities.
On this issue, the United Arab Emirates rose remarkably from 10th to 11th place in the World Bank’s 2018 Ease of Doing Business Report. The World Bank respectfully commends the UAE’s efforts to mitigate economic reforms over the past 12 months. In addition, it includes initiatives to simplify land registry and real estate transaction processes. They also acknowledged that the UAE has eliminated industrial and commercial electricity costs and improved the online registration system for new businesses. Read more about waterfront district block.
Why do Investors decide to Invest in the UAE?
When considering doing business overseas, every investor feels that several economic factors will influence their decision to do business in a country. The United Arab Emirates can be an attractive hub for investors to find their business interest in:
- The UAE has one of the most liberal trade regimes in the Gulf region and attracts large capital flows from across the region.
- The UAE focuses on diversifying its economy in trade, logistics, banking, tourism, real estate, and manufacturing, as well as offering opportunities across a wide range of industries
- The country has a well-developed infrastructure, a strong banking system, and a stable political environment
- There are restrictions on total foreign ownership for non-GCC residents, but the UAE also offers a free trade zone that allows 100% foreign ownership and no taxes.
- Emirates also offers a tax-friendly environment for most industries
- There are large numbers of foreign workers at all levels of the economy, with more than 80% of the workforce employed overseas
- No limits on exchange control and unlimited income and capital repatriation are possible
- The United Arab Emirates offers a safe family environment with one of the lowest crime rates in the world.
Why UAE is the Best for New Business Setups
The UAE is the 29th largest economy in the world and the 4th largest in the Middle East market. The United Arab Emirates ranks 11th out of 183 countries for ease of doing business. The existence of a 100% free trade zone, no taxes, excellent infrastructure, relatively stable country risk prospects in a very strategic geographical location almost halfway between East and West are attractive aspects for foreign investment.
There are several challenges that UAE investors can face in starting such a business. the need for a local sponsor who owns 51% of the company (if not in the free zone), the ability to enter into contracts, more limited rights and options for creditors (bankruptcy laws don’t align with economics), and some inherent risks to the region due to geopolitical reasons.
However, you should also know that the benefits of starting a business in the UAE outweigh the disadvantages such as the UAE attracts a highly-skilled workforce that is being absorbed by a growing number of international companies, service companies, and financial institutions. Emigrants enjoy tax-free salaries, internationally accredited schools, high levels of health, and excellent recreational opportunities – including several championship golf courses. They also include other business benefits such as:
- Easy access to affordable office space with the flexibility to rent/rent an office anywhere
- Flexibility to do business in any part of the UAE
- There are no restrictions on the processing of legal documents
- No annual check
- No corporate or personal taxes
- There is no limit to getting a work visa and a simple recruitment process
- No minimum capital requirement
- Local sponsors do not need to use a professional license
In the United Arab Emirates, relationships and mutual trust are paramount to any successful business relationship and can only be developed through face-to-face meetings. It is important to spend time with associates and ensure future meetings are held to further foster the relationship.
Having relationships with people in the UAE is very important as they can make it easier to present yourself before trying to do business in the country. Emirates residents prefer to do business with acquaintances, so the right introduction is essential to forging a successful business relationship. If you want to set up a business in any part of the UAE, a professional business consulting firm can help you. Contact them today for more information.