The UAE is well known for serving as a major hub for trade, commerce and business. It enjoys strategic advantage of its geographical location serving as a link between Asia, Europe and Africa Furthermore, with the advent of new government regulations facilitating ease of doing business and setting up businesses, it gives the UAE a comparative advantage over other countries.

Some advantages of doing business in the UAE are as follows:

Geographical Location

The UAE has a major strategic advantage with respect to its geographical location giving it a major advantage for international trade flow with lesser costs. The country’s network of advanced ports, airports and international transport systems makes it convenient to facilitate trade and business. The UAE also holds international trade agreement with various countries around the world including South Asia, Europe, Africa and America making it easier to conduct business operations.

New Government regulations

In order to attract more investment into the economy of the country, the UAE has issued laws to reduce government regulations by 30 per cent over the next three months. This move is made keeping in mind the welfare of all its citizens and residents, enabling a more investment-friendly economy.

One such law is the Foreign Direct Investment (FDI) law that allows foreign investors to own up to 100 per cent of the business. An Emirati sponsor will no longer be required for foreign investors. Under this law investors are ensured security of investment, monetary transfers the opportunity for amendment of partnerships, consolidation, procurement and transfer of ownership as per the investor’s requirement. This law enables the ease of doing business by strengthning the investment environment, attracting potential investors and aiming to reduce administrative burden in the business sector.

Free Trade Zones in the UAE

Free Trade Zones serve as an important advantage in the UAE. With the presence of numerous free trade zones throughout the country, it makes it easier to establish a business and attract investment. Some major advantages of establishing a business in a Free Trade Zone are:

  • Personal and corporate income taxes are exempt;
  • Foreign nationals have the opportunity to own a 100 percent stake in the company.
  • Possibility of 100% capital and profit repatriation;
  • There are no trade quotas or impediments;
  • Incorporation choices include onshore, offshore, and local companies.
  • There are no restrictions on capital investment;
  • Import and export have been improved.
  • Information about directors is kept confidential.

Introduction of long-term Visas

The UAE introduced a new system for long-term residency visas in 2019. Foreigners can now live and work in the UAE without the need for a national sponsor and own 100% of their businesses on the UAE’s mainland under the new arrangement. These visas will be issued for a period of 5 or 10 years and will be automatically renewed.

Investors with a minimum investment of AED 10 million in public investments are eligible for a 10- year residence Visa. The investor must:

  • A deposit of at least AED 10 million in a domestic investment fund
  • forming a corporation in the UAE with a minimum capital of AED 10 million
  • Investing in an existing or new firm with a market capitalization of at least AED10 million.

The golden visa holders get special privileges in the country and is a great scheme introduced by the UAE government to attract potential investment into the country and strengthen the economy.

Nevertheless, the UAE holds a major advantage in terms of ease in doing business and has been ranked 15th globally in Kearney’s 2021 Foreign Direct Investment (FDI) Confidence Index. The UAE has set its sight to become the most investment-friendly country in the world in the next few years and it is a very achievable goal as mentioned by a senior official of UAE World Bank group.

Our custom startup packages and consulting services help you to form your business in the UAE cost-effectively. We are one of the top organizations which provide exceptional company formation services around the UAE. Please contact us if you would like to set up a company in UAE or set up an offshore company.