The United Arab Emirates is on the shortlist of any international entrepreneur thinking of establishing a company in a foreign country. What makes the UAE so attractive for business people from all over the world? Below we discuss the main advantages that the country offers to those who want to do business there.
Continually growing economy
The UAE is among the richest countries in the world because it has phenomenal oil deposits. Export of oil is the main source of income that comes to the national budget but oil is a non-renewable resource. The number of barrels underground in the United Arab Emirates may sound impressive indeed but if you divide it by the number of barrels extracted in the country every day, you will understand that the oil will come to an end in about thirty years. The Governors of the UAE (the Sheiks) realize that and they do their best to diversify the country’s economy.
They use the income generated by oil exports to develop other spheres of economy. Because the investment capital is readily available, the UAE is a perfect country where an ambitious entrepreneur can launch a successful business project.
Besides, each Emirate offers its own benefits to business people. In particular, there are several Free Economic Zones in the UAE that allow engaging in many different types of business activities while paying very little in taxes.
Presently, the country is home for a great number of international companies including thousands of startups. Many entrepreneurs from other countries have been able to achieve their goals by launching companies in the UAE.
Business-friendly rules and laws
The authorities of the UAE take every effort to attract talents to the country. They pass laws that make expats’ lives in the UAE highly comfortable. It is very easy to register an offshore company in the UAE, to extend a license, to apply for a visa, and so on. The best part of Government services is available on the Internet. Many residents of the UAE use the ‘one-stop’ opportunity to interact with the local authorities.
Advanced infrastructure and affordable services
The living standards are exceptionally high in the UAE. A great variety of services is readily available in the country and whatever infrastructural object you may think about, you can find it there. In addition to that, the business infrastructure is also superb in the United Arab Emirates. Office buildings, transportation facilities, warehouses, seaports, high-speed Internet connection, and many other things that you need for doing business in the country are at your disposal there.
If you choose to start a business company in the UAE, you will be able to find workers with different levels of qualification with ease. Local specialists are highly qualified because many citizens of the Emirates attend western universities (they can easily afford it, as you can imagine). Besides, the UAE is extremely popular with ‘guest workers’ from other (mostly Arabic) countries. It is not difficult for them to find jobs in the UAE and even though their salaries are not so high, they do not have to pay too much in taxes either. Thus, whatever workforce you may need in the UAE – highly qualified specialists or manual laborers – you can find personnel without any trouble if you decide to start an active business in the country. The UAE is a fantastic country both for the employer and for the employee.
Lower taxes in comparison to other countries
It has to be admitted that the fiscal situation in the United Arab Emirates has worsened recently, as some new taxes have been introduced in the UAE. In particular, a 5% VAT is now charged in the country and a 9% corporate tax. However, the UAE remains one of the most attractive countries in the world as far as its tax system is concerned. If you take into consideration only well-developed countries, you will see that the UAE charges smaller taxes than any other developed country does. For example, personal income is not taxed in the UAE at all. A company registered in one of the Free Economic Zones is not taxable either (on the condition that it does not do any business with partners inside the UAE).
The Sheiks do not levy high taxes not because they are so affluent that they don’t have to bother with taxing people. They are highly pragmatic, as a matter of fact: they realize that a small tax burden serves as a very powerful stimulus. It attracts foreign entrepreneurs – and foreign capital – to the country, which certainly contributes to further development of the local economy.
A UAE-registered company can be owned by foreign nationals
A couple of years ago, you had to have a local partner (or a local sponsor) if you wanted to register a company in the ‘mainland UAE’, so to say, outside a Free Economic Zone. This restriction has been lifted now. No matter where the company is registered – in a FEZ or not – it can be fully owned by a foreigner or a group of foreigners.
As far as the Free Economic Zones are concerned, this opportunity has been available in all of them from the very beginning. If launching a company in the UAE is on your mind, you certainly should give some special consideration to the FEZs in the country. There you can find some serious tax incentives and the company registration process is going to be simple if you choose to establish a company in one of the Free Economic Zones.
Global recognition of the UAE
The United Arab Emirates is one of the leading countries in the Arab world but it also enjoys universal recognition in all other parts of the world. Europe, North America, South America, China, and all other countries consider the UAE a large business center and a reliable business partner. You will find people of a large number of different nationalities in the UAE if you decide to open a company there and move to the country with your family. If this is what you would like to do, using some professional support in the process would certainly be a good idea.