Business Setup Dubai . business in UAE . Offshore business setup .

Why and where to start your business in UAE?


The United Arab Emirates is located on Arabian Peninsula and is comprised of seven independent states. These states have their own features and with booming economy they present multiple business opportunities in various fields whether it is banking, trade, commerce, manufacturing, construction etc. United Arab Emirates provide numerous benefits to an entrepreneur which makes it an ideal place if you want to start a business in UAE.

According to World Bank’s Ease of Doing Business report 2017, UAE ranks 26 which are much better than its neighboring countries like Saudi Arabia which ranks 94, Qatar 83 and Oman 66. This is even better than the previous ranking i.e. 2016 report in which UAE ranked 31. Various factors corroborate to make UAE an excellent business destination. These are,

A Strong and Growing Economy

Over the last few decades, UAE has become a hub of business activity from all over the world. It is amongst those countries having high per capita income and high trade surplus. Many leading companies have invested and are holding their offices here thus positively contributing to the development of the economy.

There is a significant increase in the demand of consumer on the import of goods as well as on the volume of export which plays a major role in making decision on investing in UAE. Also due to rapid development, UAE has become an international destination ideal for tourism. Dynamic environment, transparent conditions, positive business climate and political stability are the reasons which make UAE having the most prosperous economy in the Arab world.

Legal Framework for Business Setup

In order to facilitate foreign investors, UAE government has simplified its legal structure. Various procedures such as documentation, licensing, registration etc. are much easier, quicker and hassle free.

Taxation Benefits (Tax Exclusion)

One of the critical stages in setting up your business is to understand the taxation procedure of the government so that you have to pay lower amount of taxation. UAE offers various taxation benefits such as zero personal and corporate taxes, no foreign exchange control and very low import duty.

Free Trade Zones

One of the biggest benefit for an entrepreneur in UAE is free trade zones provided for foreign investors which has attractive features such as

  • Complete exclusion from all kinds of taxes and fees.
  • Complete ownership of the business i.e. not mandatory for investor to have local citizen as partner hence no profit sharing.
  • Availability of land, road, electricity and the entire necessary infrastructure to establish your company.
  • No custom duty or fees.

Local Culture and Language

In 2013 UAE had population of 9.2 million people of which 7.8 million are expatriates. Arabic is the official language of UAE but since UAE has its occupants from all over the world so English is the most spoken language in areas of business and education. UAE has been inhabited since thousands of years so it is a land rich in culture which you can get to know in the form of art, architecture and food.

Good Governance

The crime rate in UAE is very low, political structure is very stable. All UAE citizens are required to have health insurance. World’s best health care units are established there. Literacy rate in UAE is 93.8% which is an excellent figure. Also leading world’s educational institutions have been setup there.

Each Emirate has its Own Benefits

Each state in UAE offers its own unique benefits for foreign investors. If one emirate presents opportunity in tourism, another is good for industrial setup. It depends on the entrepreneur that what kind of company he wants to establish and accordingly he will select area which caters to his needs.

Strategic Location

If we look at the map, we will come to know that the geographical location of United Arab Emirates in very ideal. It is connected to three continents i.e. Europe, Asia and Africa. This feature makes it ideal for trade. There are modern airports which provide thousands of weekly flights worldwide. There are sea ports which are connected to major other hubs and aiding in delivering goods from one place to other.

The above mentioned features make it ideal for business to invest in UAE and be a part of one of the world’s fastest growing economy. The location of business depends upon the type of company you want to start. There are mainly three options i.e. Mainland, Free zone and Offshore Company.

Mainland Company restricts the ownership to maximum of 49% and you will have to find a UAE citizen as a sponsor having ownership of 51% however sponsor can exclude from sharing of profits. In Free zone setup, you are allowed to have complete ownership of your business but you will conduct your business operations in the free zone, outside of UAE. Offshore business setup means that entrepreneurs are going global. It is not necessary that they should have offices within Dubai but they can contact with banks or have local legal representatives.

It totally depends on the requirement of the business that which zone they should select to start their business as every zone has its own benefits and requirements. Sometimes as an investor it is difficult decision to make that which zone is preferable according to the nature of the business and here an expert plays his role by guiding the business owners that which zone is suitable for them.

At KWS Middle East we provide Free Consultancy to businesses and take care of all the requirements and processes which can save investors a lot of time, money and effort.

Leave A Comment

Latest Articles