Expand Your Business in the UAE
The United Arab Emirates, with its rapidly developing infrastructure, investor-friendly policies and political stability, is undoubtedly one of the most attractive business destinations in the region.
The UAE follows global practices and creates a conducive environment for businesses to operate, and presents ample opportunities for both investors from the region and around the world. The country lies at the heart of a strategic, geographic crossroads where trade, commerce and diverse cultures have co-existed and interacted for hundreds of years.
Foreign investors looking to set up a business in any of the industrial cities, special economic zones or free trade zones established in different emirates have access to single window licensing services that promise quick turnaround in terms of registration and visa processing. Specialized zones for technology, media, education, healthcare, finance and others gives an added dimension to the trade and commercial environment.
The Government encourages the private sector in a free trade regime with low tariff barriers and minimum legal hurdles. Many multinational companies have established branches in the country, many are engaged in manufacturing products or assembling them and many others have set up distribution centers for the region.
The economy still relies on oil revenues, however the years have seen a progressive shift away from a fossil fuel base to a highly diversified all-round growth in manufacturing and trade, with service industries also seeing exponential development in sectors such as finance, tourism, real estate and information and communication technology.
Advantages of Expanding Your Business in the UAE:
- No restrictions on profit transfer or repatriation of capital.
- No corporate or income taxes.
- A currency, the Dirham, which is stable, secure and pegged to the US dollar.
- Very low, or non-existent, import duties.
- Competitive labor costs.
- Named the leading Arab economy in terms of global trade by the WTO.
- Key international trading hub between East and West.
- Supports open trade and has a free-market policy.
- Stable trade relations with countries throughout the world.
- Low tariffs and 100 per cent ownership for foreign investors in selected zones.
Business & Economic Growth in the UAE:
The UAE’s rate of economic growth in the private-sector business in Dubai is surging, according to three key indicators. An HSBC index that measures output in non-oil and manufacturing businesses rose to 54.5 points last month from 54.1 the previous month. A reading above 50 signals expansion, with a score below that representing a decline.
It was the 47th month in a row of improvement, underscoring the pace of recovery in the private sector since the global economic downturn in 2009. The figures were released on the same day as two surveys that showed rising business confidence in Dubai, which accounts for most of the private sector’s output.
More than 90 percent of respondents to a survey by the Dubai Department of Economic Development expected either an improvement or stability in business conditions by the end of the year. A similar survey by Dubai Chamber of Commerce had 48 percent of business leaders forecasting a pick-up in conditions.
The HSBC index in particular is “another positive set of readings that shows the UAE maintaining momentum even as other more high-profile emerging markets lose steam”, said Simon Williams, the bank’s chief economist for the Middle East and North Africa.
Ishwar Chugani, the Middle East managing director of the clothing retailer Giordano, said an increase in tourists and other visitors to the UAE was one of the drivers of more brisk activity.
“There are a lot of positive developments happening in the market,” he said. “We are increasing investment in locations and starting a fairly aggressive expansion in stores as we see there’s a lot happening, especially linked to what the Government is doing.”