The Benefits of Doing Business in the UAE "Companies Guide".

The United Arab Emirates (UAE) has emerged as a global hub for business in recent years. Its strategic location, business-friendly policies, and strong infrastructure make it an attractive destination for companies looking to expand their operations.

In this comprehensive guide, we will explore the benefits of doing business in the UAE and provide insights into the different factors that companies should consider before setting up their operations in the country.

1. Strategic Location. 

The UAE is strategically located between Europe, Asia, and Africa, making it a gateway to the Middle East and North Africa (MENA) region. This geographical advantage has helped the UAE become a major logistics and transportation hub, with excellent connectivity to major global markets. The country's two major airports, Dubai International Airport and Abu Dhabi International Airport, are among the busiest in the world, handling millions of passengers and cargo every year.

2. Business-Friendly Policies. 

The UAE is known for its business-friendly policies and supportive regulatory environment, which make it easy for companies to set up and operate their businesses. The government offers a range of incentives and benefits to foreign investors, including tax exemptions, customs duty waivers, and 100% foreign ownership in many sectors. In addition, the UAE has a well-established legal framework and a transparent judicial system that provides a high level of legal protection for businesses.

3. Diversified Economy. 

The UAE's economy is diversified, with a strong focus on non-oil sectors such as tourism, real estate, and financial services. This diversification has helped the country weather the impact of the global economic downturns and remain resilient in the face of external shocks. The UAE's economy is expected to grow at a rate of 3.5% in 2021, according to the International Monetary Fund (IMF).

4. Access to Talent. 

The UAE is home to a large pool of talented professionals from around the world. The country has a highly educated and skilled workforce, with a strong focus on innovation and entrepreneurship. The government has implemented various initiatives to attract and retain talent, including offering residency visas to investors and entrepreneurs.

5. Strong Infrastructure. 

The UAE has a world-class infrastructure, including modern transportation networks, advanced telecommunications systems, and state-of-the-art energy and utilities infrastructure. The country has invested heavily in infrastructure development over the years, which has helped it become a major hub for trade and commerce.

6. Tax Benefits. 

The UAE is known for its tax-friendly policies, with no personal income tax or corporate tax in most cases. The country also has a value-added tax (VAT) system, which was introduced in 2018. The VAT rate in the UAE is 5%, which is one of the lowest in the world. This tax-friendly environment makes the UAE an attractive destination for companies looking to optimize their tax liabilities.

7. Ease of Doing Business. 

The UAE is ranked 16th in the world for ease of doing business, according to the World Bank's Ease of Doing Business report for 2020. The country has implemented various initiatives to streamline business processes and reduce bureaucracy, making it easy for companies to set up and operate their businesses.

8. Free Zones. 

The UAE has a number of free zones, which offer a range of benefits to companies looking to set up their operations in the country. Free zones are designated areas that offer 100% foreign ownership, tax exemptions, and other incentives to businesses. There are currently more than 40 free zones in the UAE, covering a range of sectors such as technology, media, healthcare, and logistics.

9. Cultural Diversity. 

The UAE is a melting pot of cultures, with people from around the world living and working together in harmony. This cultural diversity has helped create a vibrant and dynamic business environment, where companies can benefit from a wide range of perspectives and ideas.

10. Stable Political and Economic Environment. 

The UAE has a stable political and economic environment, which provides a high level of security and stability for businesses. The country has a well-established legal system and a transparent regulatory framework, which help protect the interests of businesses and investors. The UAE government has implemented various initiatives to promote economic growth and diversification, such as the Vision 2021 strategy, which aims to make the UAE one of the best countries in the world by 2021.

11. Access to Capital. 

The UAE has a well-developed financial sector, which provides easy access to capital for businesses. The country has a large number of local and international banks, venture capital firms, and other financial institutions that offer a range of financing options to companies. In addition, the UAE has a strong culture of entrepreneurship, with many successful startups and small businesses operating in the country.

12. High-Quality of Life. 

The UAE offers a high-quality of life for expatriates and their families. The country has a modern healthcare system, excellent educational facilities, and a diverse range of leisure and entertainment options. The UAE is also known for its luxurious lifestyle, with many high-end hotels, restaurants, and shopping malls.

Conclusion 

The UAE offers a range of benefits to companies looking to expand their operations in the Middle East and North Africa region. Its strategic location, business-friendly policies, diversified economy, talented workforce, strong infrastructure, tax benefits, and ease of doing business make it an attractive destination for businesses of all sizes and sectors. With a stable political and economic environment, access to capital, and a high-quality of life, the UAE is a top choice for companies looking to grow and succeed in the region.

For further assistance please contact Al Safar & Partners on +97144221944 ext. 720  or +971 55 763 0405-email reception@alsafarpartners.com  -     www.alsafarpartners.com

Written By:

Dr. Ahmed Hatem - Partner & Head of Corporate and Commercial department at Al Safar and Partners Law Firm.