UAE is the perfect launchpad for your business venture. The Country offers exceptional support to foreign investors to come and settle in UAE. There are immense business opportunities for doing business in UAE.
UAE stands at No.1 in the “Ease of Doing Business index” for the Middle East region. Doing business in UAE is a straightforward process supported by the two main business jurisdictions – Mainland and Free Zones of UAE.
There is growing domestic demand for businesses across all categories ranging from services to manufacturing. Similarly, Technology adoption over years has transformed the industrial outlook of the UAE.
Doing Business in UAE – Target Audience and Business Opportunity
Doing business is dependent on the target audience and business opportunities in UAE. However, UAE is home to more than 200 nationalities and a wide audience base for any type of business or service. Hence any business in UAE will survive easily as it will find the target audience required.
Doing business in UAE is driven by certain parameters that will help investors easily set up their business and start operations in the region. UAE is the perfect destination for the entrepreneur to seamlessly conduct business and achieve easy business growth.
Various factors make UAE a perfect destination for foreign investors to start a business and achieve sustainability.
1. Strong Economy
UAE has a strong economy and sound geopolitical scenario for businesses to thrive in the region. Government spending on business infrastructure and other amenities is on the high side and beneficial for investors.
The oil-rich as well as diversified economy support business growth. There is a growing demand for tourism, science, and technology in UAE. Additionally, The Absence of any political pressure makes daily business operations seamless and highly productive without any hassles.
For setting up a new company, a strong economy plays a key role in achieving sustainability and constant business growth.
2. UAE – Business Hub of the Middle East
UAE is a prominent business hub of the Middle East with a growing number of Free Trade Zones that are significantly supporting the business setup and startups. It is a prominent business hub of the Middle East with a growing number of Free Trade Zones that are significantly supporting the business setup and startups.
For investors, UAE is the ideal choice for establishing a company and scaling it up easily. Also, The ease of doing business in the UAE and minimal paperwork make it easy for the investors to establish a business and settle down in UAE.
There are numerous business benefits for the entrepreneur in starting a business in UAE. The 100% foreign ownership, low taxation, robust banking network, etc., trigger the new company formation in UAE.
3. Low Taxes
UAE has the lowest taxation rates in the world with only 5% VAT charged on all sales transactions happening within the country. Presently, there is no income tax or corporate tax in UAE. So, business owners from Europe can start a company and settle in UAE, obtain the Tax Residence Certificate and save taxes in their home country.
The low Taxation is a major attraction for investors from high tax paying countries to start a company in UAE and benefit from the Double Taxation Agreement. Low taxation is a major driver for Doing business in UAE for foreign investors.
4. Minimal Formalities
The company formation process in Dubai is a very straightforward process with easy steps involved in the company registration. The business-friendly laws support the investors to easily set up and expand their business ventures.
The Free Zones play a significant role in new company formation in the region. There is a well-structured company formation process in the Free Zones enabling easy business setup for the investors.
A company in the Free Trade Zones of UAE can be registered in a single day by providing the required documents and making the business license fee payment. So, doing business in UAE is made easier for the investors by the Free Zones in the region.
5. Free Trade Zones Offers
The Free Trade Zones in UAE offer exclusive discounts on company formation. There are attractive packages with office spaces and world-class amenities.
The Free Zones have multi-year business licenses for the investors to think long-term for their business. Multi-Year business license offer enables entrepreneurs to plan their business well and not have the hassle of company license renewal for 3 to 5 years.
Business owners can focus on their core business and not spend time and resources on company license renewal and other administrative works.
6. World-Class Business Infrastructure
The Free Zones in UAE offer world-class business infrastructure for global investors to establish their companies in the region and do business in UAE successfully.
The offices, warehouse spaces, and land for light and heavy manufacturing are available in abundance for companies of any size in the UAE.
For global investors, the Free Zone has office spaces ranging from shared desks to exclusive office space, and a customized warehouse location for easy coordination of the business.
7. Workforce Availability
UAE is a perfect location for the availability of a well-trained and skilled workforce for any type of business. UAE is a nation with a diverse population and a perfect destination for the expatriate population.
Business can easily get their desired number of staff with expertise and skill for their business operations. Hence, companies can take up large projects and achieve business growth seamlessly.
8. Living in Dubai
Dubai is a perfect place for the expatriate population to live work and settle in the region. The city has a lot of business opportunities and infrastructure available for investors to do business in the region effectively.
The City of Dubai has it all for the entrepreneurs to establish a business, operate their business, and live peacefully. The world-class lifestyle and business infrastructure attract global investors to UAE.
Booming Business Sectors in UAE
UAE is one of the most booming locations for business. 2022 is a year of revival for most of the business sectors globally. There are numerous booming business sectors in UAE.
It is driven by the steady demand from B2B and retail customers. The Business landscape in the region is evolving constantly to address the growing demand from the international markets.
Businesses in UAE are operating in full swing to meet the requirements of customers in both business and consumer segments. There is a solid growth projection stating a rise in entrepreneurship and new shop openings for the year 2022.
Here are some of the booming business sectors in UAE for 2022. The business landscape of the UAE is constantly transforming with new infrastructure, technology, and government support.
The Free Zones play a vital role in shaping up the business ecosystem and infrastructure in UAE. Foreign investors prefer the Free Zones to set up their companies due to numerous business benefits. The Free Zones offer:
- 100% foreign ownership
- Friendly taxation policy
- Full profit repatriation
- World-class infrastructure
- Easy business setup, and more.
Industry Sectors that are on a boom for 2022 that investors can focus on are the following:
1. IT Solutions
The IT Sector in UAE is on a boom. There is a constant upgrade in technology and new IT solutions every year. UAE is at the forefront of technology adoption. It is one of the best business sectors for investors to put their money in and start a business.
IT sectors have many domains such as software development, IT Solutions, Hardware sales, IT Maintenance, Cyber Security, Cloud & Data Management, and more.
The companies in UAE are always on the look to partner with the best IT Provider for revamping their business processes and achieving higher business growth.
Free Trade Zones – Perfect Choice for IT Solution Providers
The Free Trade Zones are the perfect choice for opening an IT Solutions business. They offer the perfect business ecosystem and networking opportunities for entrepreneurs in the IT field to collaborate and work together on specific projects.
Investors can start an IT solution business in Dubai for AED 17,300 for a One Visa company. The Free Zones provide all required business infrastructure and amenities for the investors to easily scale up their business venture in UAE.
eCommerce is another area that is observing a significant growth rate in UAE over the years. The eCommerce ecosystem in UAE is becoming more robust and there is a growing requirement for more service providers in this sector.
The ecosystem is expanding with the addition of more eCommerce platforms, secure payment gateways, efficient logistics and delivery services, etc. The eCommerce sector in the region is witnessing a boom over the past few years.
As a result, the eCommerce sector is a prospective business investment for foreign investors. There is immense opportunity in the eCommerce business sector.
Dubai CommerCity – A Dedicated Free Zone for eCommerce Business
In Dubai, there is a dedicated Free Zone for eCommerce business operations, the Dubai CommerCity. It is located in proximity to the Dubai International Airport making it easy for the goods to transport in and out of Dubai easily.
The Free Zone has a wide range of Warehouse spaces specifically catering to the eCommerce business segment. The Warehouses are customized for specific business activities such as foodstuff trading, cold storage, perishable items, general trading goods, and more.
Similarly, there are numerous Free Trade Zones in UAE offering eCommerce licenses for investors. The investor can choose the respective Free Zone depending on the required business activity, budget, location preference, logistics support, etc.
3. Real Estate
Real Estate in UAE is a popular business category that offers an immense return on investment for investors. There are various business activities in the real estate sector.
A few of them are residential and commercial, rental & leasing of units, buying & selling of real estate units, property management, facility management & maintenance, and more.
Investors can secure a real estate company license from the Dubai Mainland or in the Free Zones to facilitate the desired real estate operations. Depending on the selected business activities, the trade license will be issued by the respective licensing authorities.
Consultancy in Dubai never stops, every year there will be new multi-million projects launched in Dubai to target tourists, high-net-worth individuals, business investors, and more.
A large volume of projects is commissioned, delivered, and started in UAE every year over the years. The construction sector in UAE is made up of a well-established ecosystem with builders, developers, contractors, engineers, suppliers, support services, and more.
Hence, on the business front Construction sector is a high-volume investment sector. There is a huge capital requirement for the investor depending on the scale and scope of the construction project.
Basically, construction companies are registered in the UAE Mainland to facilitate large volume business operations, hire numerous staff, get a warehouse, finance large projects, and more.
5. Consultancy Services
Consultancy Services are the most popular business license category in UAE. The professional License is one of the most issued in the mainland and Free zones.
Entrepreneurs can start their business operations across a wide range of business activities such as business management, finance management, customer support services, training & education, business strategy management, and more.
Foreign investors prefer Free Trade Zones for setting up their consultancy office due to the reduced cost, attractive Free one packages, and access to networking opportunities within the Free Zone and beyond.
Hence, in a nutshell, UAE is home to a growing business ecosystem and there are numerous business sectors in the Country that provide immense opportunities to investors. There is an ever-growing demand for new businesses in almost every sector due to the large target audience available in UAE.
To know more about the Business Developments and Prospective Business Sectors in the UAE, Talk to our business consultants right away!
Ease of Doing Business in UAE
UAE has a ranking of 16 among 190 countries in the ease of doing business, according to the latest world bank annual ratings. The ease of doing business in the UAE makes it an entrepreneur’s favorite location.
The reforms in the UAE in the business sector are making it easier for investors to establish a company in the UAE.
What makes UAE a perfect choice for Investors?
Investors prefer UAE for business setup and settling down with family due to the following reasons:
- The 100% foreign ownership and 100% Profit Repatriation
- Tax-free status – No Personal or Corporate tax,
- Robust transport network,
- Personal safety and high standard of living
- Multi-culture society,
- The government support for business and trade
UAE also offers a host of residence visa options through the business setup in UAE, i.e;
- Visa through Property purchase in UAE,
- Retirement Visa for Seniors and People who wish to settle in UAE,
- Long-term residence visa for Scholars, Entrepreneurs, Scientists, etc.
The quick issuance of residence visas in the UAE is another attraction for foreign expatriates to choose UAE for living.
7 Factors that contribute to the Ease of Doing Business in UAE
At a glance, the following are a few measures to speed up the company registration process in the region by Government and Free Zone Authorities.
1. Lowering of Business License Cost
The 45 plus Free Zones in UAE offer attractive business license packages to drive in more investors to the UAE. The major upfront cost for entrepreneurs is the business license cost and rent for the office space. Hence, lowering the component will attract more foreign investors to the UAE.
The most popular Free Zones in Dubai, Dubai Airport Free Zone offers company setup options such as Flexi-Desk Package, Executive Office Package, etc., at lower business license costs.
2. Quick Company Registration in Free Zones, Mainland & Offshore
The company formation process in the UAE is relatively straightforward and with faster processing time.
The streamlined company formation process and digitization of most of the functions such as document submissions, fee payment, license issuance, etc., make it easy for entrepreneurs to quickly set up their company in the region.
3. Fast Issuance of Clearances and Permits
To further speed up the company formation process the authorities have faster clearance and permit issuance for certain business activities such as construction, healthcare, pharmaceuticals, etc.
The business setup process for certain activities requires special permission from the Dubai Municipality, Road Transport Authority, Knowledge & Human Development Authority (KHDA), etc.,
All these Government bodies have digitized their operations to streamline the processing of a large number of requests received.
It has helped in a great way to register more companies in a shorter time.
4. Easy Mechanism for VAT Registration & Filing Returns
Zero taxation and no personal or corporate tax in UAE is a driving factor for investors to settle down in UAE.
Businesses and consumers pay a 5% VAT whenever a purchase is made within the UAE. The VAT Registration and Filing have been made easier through the online platform managed by the UAE Ministry of Finance.
5. Quick Corporate Bank Account Opening
Basically, UAE has a matured and robust Banking Network with several international and local Banks. It offers a host of Banking Services and products to business customers as well as residents of UAE.
The digital process and quicker Know-Your-Customer Compliance checks, zero balance accounts, easy business loan issuance, etc., make UAE Corporate Banking Competitive.
Also, the Banks in UAE have various loan options and financial instruments to support SMEs.
6. Digitizing Import-Export Documents
For the trading companies operating in UAE, import-export and customs clearance is a time-consuming process. The inspection of the consignment and verifying the Certificate of Origin, and Trade documents by the Customs are performed on a case-to-case basis.
With the digitization of Customs checking and validating the Certificate of Origin, the import-export process is streamlined and fast making the goods clearance from UAE ports much easier and quicker.
7. Stimulus Package to support SMEs
The Government of UAE along with the Central Bank of UAE, Other Banks, and Free Zones have issued Stimulus Packages worth approx. USD 256 Billion to promote trade and support SMEs in the region during the downturn from the Pandemic.
The relief measures were distributed to the business in many ways such as Business License Fee waivers, Rent waivers, Interest-free loans, and many more.
In a nutshell, UAE is a perfect location for doing business and settling down with the family. With the business-friendly measure and high standard of living, it has all to attract foreign investment and create business growth in the region.
To know more about the Business Opportunities in UAE and ways to establish a company in UAE, talk to our expert business consultants right away!
Contact Us: Aurion Business Consultant
To know more about Company Formation in UAE, talk to our experts right away!