Why choose the UAE for Business setup?
Considering the location to start a business setup has always been important for businessmen. Some may be looking for geographical location where as some may prefer to go for facilities provided by the government.
To choose UAE as your business destination will always many reasons to attract like taxes, its location and access to different parts of the world, connectivity throughout the week by air, road and sea. On top of that main reason of attraction can be setting up businesses with ease like in days one can get its commercial license depending on the activity he/she chooses.
Government facilitation in terms of taxes has always been attractive for businessmen in UAE. They have set up many freezones all over the country with different scope of activities and its own attractions.
Reasons to choose UAE for doing business setup:
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100% Ownership: Earlier it used to be only freezones in UAE where expats can have 100% of ownership of their business and in mainland, one has to go with local sponsorship with 51% and 49% for local and expat respectively, however since Nov 2020, government has announced that all businesses except professional licenses can be owned 100% by expats if they want.
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Minimal Taxes: While doing business in UAE one of the attractions is very less tax which is very beneficial for investors. For instance, if a company turnover is less than 365,000 local currencies, they are exempted for paying taxes. On the other hand, there is no taxes on income hence it has attraction for employees unlike in Europe or other western countries.
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Qualified Workforce: Being hub for not only businesses UAE always remained on top and heaven for job seekers too. On the other hands employers have many options while onboarding candidate by getting experienced candidates, with different backgrounds and at the end of day having diversified culture environment.
- Ideal Environment for Business setup : The tax-free environment, subsidized utilities, and lack of import duties all help lower the cost of living and doing business in the UAE. Office space, transportation, and labor costs are also typically lower compared to other global business centers.
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State of the Art Infrastructure : The UAE’s location between East and West provides easy access to markets in Africa, Europe, Asia and beyond. It also has a highly developed infrastructure, including ports, airports, roads, and telecommunications that facilitate trade and enable businesses to efficiently serve global customers.
With standing above, UAE has edge over other countries by having following to boost their infrastructure: –
- One of the best transportations Facilities :The UAE has a modern road system, ports, and airports that make it easy to move goods and people. Dubai International Airport is the world’s busiest for international passengers, connecting you to major cities worldwide. Shipping is facilitated by massive ports like Jebel Ali, a leading re-export hub.
- Advanced telecommunication: The UAE has one of the most sophisticated telecom networks on the planet with high mobile and broadband penetration. This connectivity allows you to communicate instantly with colleagues and customers around the globe.
- Ultra-modern facilities: The business districts in Dubai and Abu Dhabi feature skyscrapers with spacious offices, meeting rooms, and every modern convenience. Many companies operate out of business parks that provide an entire ecosystem to support enterprises.
- Strategic Location for Global Access: The UAE’s location makes it an ideal hub for global business. Its strategic position provides easy access to emerging markets in the Middle East, Africa, and South Asia.
- Connection to High-Growth Regions: The UAE is located at the crossroads of the East and West, connecting businesses to over 2 billion consumers. This includes high-growth regions like:
- The Middle East and North Africa, with a rapidly expanding middle class and youth population.
- Sub-Saharan Africa, home to some of the fastest growing economies in the world.
- The Indian subcontinent, with a population of over 1.5 billion people and growing demand for goods and services.
From the UAE, you have direct access to all these promising markets to establish new customer bases and supply chains.
- Stable Political and Economic Environment: Despite its location in a complex region, the UAE has a very stable political and economic environment. This includes:
- Strong economic policies that promote business and trade. The UAE is ranked among the top countries in the world for ease of doing business setup.
- Strict security and enforcement of laws that minimize risks like fraud, corruption, and money laundering which can be concerns when entering new markets.
- The local currency, the UAE Dirham, is pegged to the US dollar which provides economic security and predictability.
The strategic location, connectivity, and stable business setup environment of the UAE allows companies to easily access new growth markets, connecting businesses to new opportunities on a global scale.
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- Strong, Diversified Economy. The UAE has the second largest economy in the Arab world after Saudi Arabia. Its economy is very diversified, with sectors like trade, tourism, banking, and petroleum contributing to its GDP. The UAE is also focusing on developing knowledge-based industries like technology, science, and aerospace. The government has free trade zones and economic zones to attract foreign investment. These areas have tax incentives, full foreign ownership, and simplified administration procedures. Major global companies have set up their Middle East headquarters in the UAE, taking advantage of its strategic location and pro-business policies.
- Political Stability. The UAE has a very stable political system and low crime rates. It has not seen any major political upheavals since its formation in 1971. The government emphasizes tolerance and inclusiveness. People of over 200 nationalities live and work in harmony in the UAE.
- Strong Economy and Stable Political System: The UAE has one of the most vibrant economies in the Middle East, thanks to its business-friendly environment, political stability, and strategic location.
The ruler of each emirate forms the Supreme Council, which elects the President. The current president, Sheik Khalifa bin Zayed Al Nahyan, has held office since 2004. The UAE’s political stability and secure environment make it an attractive place for foreign investors and companies to do long term business.In summary, the UAE’s booming, diversified economy, political stability, strategic location, and business-friendly policies make it an ideal hub for global trade and commerce. For companies looking to expand into the Middle East and Africa region, the UAE is one of the best places to establish a base and do business.
Standing with above, we JustProbiz Documents Clearing Services LLC Dubai with having local market experience can guide you to choose best activities for your business setup based on your expertise/experience and requirement by not only guiding you to select out of various available options of Freezones or mainland but also helping you to select the Emirates. contact us for more details