UAE is at the forefront and is becoming one of the most preferred business destinations of the world. There are multiple benefits for an entrepreneur in conducting a business in the region.The effect of US policy changes on UAE’s economic growth is the key focus in this article.
This article highlights how the Policy changes in the US, such as the hike in Import tariffs, H1B Visa fee hike, and other cross-country trade-related regulations. Impact UAE’s economic growth.
The growing geopolitical tensions and the effect of policy changes in the US, etc., have a significant impact on the UAE’s economy.
So, there will be a positive impact on UAE due to the policy changes in US. Many foreign expats will choose UAE as there new home for work, business, freelancing, and for studies.
What is the Effect of US Policy Change on UAE Business Landscape?
Additionally, the lower corporate tax and value-added tax make the UAE a competitive business destination. The foreign entrepreneurs can smoothly conduct their business in the UAE the most comfortable way.
All they must follow is the compliance and adopt the right ways to keep the company in good standing throughout the operations.
The effect of US policy changes in the UAE economy will start seeing light soon. The UAE has been home to many nationalities.
There is a huge migration of millionaires to UAE from various parts of the world, such as the UK, parts of Europe, Russia, India, etc. Mainly due to the low taxation regime and booming business opportunities in the Middle East region.
Also, the public safety, the government’s long-term vision, availability of talent, top-class business amenities, luxurious lifestyle, etc., are driving more families to make the UAE their home.
Factors Supporting the UAE’s Economy and Growth
There are many factors that contribute to the UAE’s economic growth. The main factors are listed below. Many of the business sectors in the UAE are experiencing positive growth due to the US tariffs and Policy changes.
1. Business Friendly Policies
The business-friendly policies and ease of doing business in the UAE are attracting many foreign investors to the region. Also, the low taxation rates compared to Europe, the US, India, etc. Companies can enjoy almost tax-free income from their business operations in the region.
Many businesses in the region are expected to witness the effect of US policy changes on the UAE economy.
Especially, the technology sector that is booming with initiatives such as driverless cars, flying taxis, AI-based solutions, technology applications in real estate, healthcare, retail, and more.
2. Real Estate Demand from Commercial Investors
Office space in the UAE is in high demand. The warehouses, fully functional office spaces, co-working spaces, shared desks, etc. There are many options available. Getting an Office in Dubai is becoming challenging and costly due to the rise in demand.
Demand for office space is surging. From warehouses to fully functional offices, there are a lot of facilities for business owners. Then, there are the co-working spaces and shared desks.
However, rising demand is making office space in Dubai increasingly competitive and costly. The effect of migration of investors from the US due to the policy changes will raise the demand for commercial real estate.
3. Real Estate for Personal Investment
There are many properties available for freehold in the UAE. Individual investors can purchase property depending on their specifications. There are regions where the rental yield is higher.
The real estate market in the UAE is booming, and many new property launches are on the way. Many expats from the US, after the policy changes, would consider relocating to UAE.
4. Made in UAE
The industrial operation in the UAE is in a boom period. Many new factories are getting registered in the UAE. The local manufacturing and production will boost the economy of the UAE significantly.
Also, the “Made in UAE” tagline is a moment of pride for UAE-based companies. Also, they can benefit from the lower tariffs set for exports from the UAE by the US and other countries.
Many industrial investors from the US, due to the policy changes, are expected to move their base to the UAE. Also, Indian Exporters to the US will find relocating their factories to the UAE a cost-effective solution.
5. Freelance Business
The Freelance Permits in the UAE are on the rise. Many digital nomads are entering the country to secure the Freelance permit and work for multiple projects in the UAE. The country offers many benefits for freelancers and also a luxurious lifestyle.
The freelancers can live and work in Dubai and sponsor themselves. Also, they can network and collaborate with multiple business owners and work across various business sectors.
Many tech job seekers aiming at the US will reconsider their priority to the UAE as the immigration policy and visa regulations are becoming tighter in the US. There is a surge expected in the freelance segment in UAE.
6. Golden Visa for Property Owners
Golden Visa is one of the best available alternatives for an H1B visa or a Green card Aspirant aiming for the US. Due to the strengthening of immigration policy and visa regulations, individuals can consider the UAE Golden Visa as the best option and can get their Golden Visas for 10 years approved within a few days.
Property owners, business investors, and executive directors in the UAE can apply for a Golden Visa upon meeting certain requirements. For property owners with an investment of AED 2 million, they can be eligible for a golden visa. The sale deed must be in their name, and even if the property is in a mortgage or loan, it is eligible.
The bank NOC is a requirement stating the property value and loan details. Also, there is no minimum down payment requirement for applying for the Golden Visa.
They receive a prestigious Dubai Address, a new lifestyle, an investment asset, and a 10-year golden visa for an investment of AED 2 million. So, it remains as one of the key forces that is driving foreign investors to Dubai.
7. Golden Visa for Skilled Workers, Executive Directors, and Students
The Golden Visa program for Skilled Workers in fields such as IT, Artificial Intelligence, Art, Culture, Crafts, Healthcare, and Teaching is driving families to settle and live longer in the UAE.
The Golden Visa will have a high demand as many US aspirants will consider the choice. The strong immigration policies and visa regulations in the US make it difficult for many to enter the US.
Alternatively, they can live, work and settle in the UAE with a luxurious and superb lifestyle at a much lower cost of living compared to the US.
Executives and professionals with above AED 30,000 basic salary are eligible for the Golden Visa. They must have a bank statement for 6 months. So, managers, executive directors, etc., can apply for the golden visa and sponsor their family under this category.
Furthermore, outstanding students and PhD holders can apply for a golden visa if they meet the criteria.
The student must have a 3.75 GPA, and a PhD graduate must have published articles in reputed science journals, have worked on projects that support the UAE’s economic growth, and won awards related to the field of operation.
8. Company Formation
So, with the changing policies related to immigration and trade in the US, it will have a significant impact on the expats living in the US. They might consider a relocation and start a new business or a new life in some other country with low political tensions and a peaceful life for their family.
With streamlined processes, investor-friendly policies, and free zone advantages, setting up a company in the UAE has never been easier.
To know more about relocating to Dubai from anywhere in the world, connect with us right away!
