UAE: Why Is It a Favoured Destination for Business Expansion?
UAE is known as a land of harmonious existence of rich traditions, strong cultural values and modernity with beguiling and stunning destination which has developed from a barren desert land to a go-to tourist destination. In recent years tourism and a diverse economy have made the UAE a regional hub and an attractive country for foreign investors. Residents in the UAE express much pleasure with the transportation infrastructure in the country now than in previous years.
As per World Economic Forum UAE ranks 25th globally in Global Competitiveness report 2019 and are a known politically and economically stable country. It has been hosting more than 200 nationalities and is recognised as one of the most tolerant countries in the world.
Besides, the entire way of life of the UAE opens great prospects and opportunities for further creation and development of a successful business. The minimal crime rate, minimal taxation, stability of the current national currency, broad proposals for residential and commercial real estate for buying and selling, and the perfectly classified infrastructure makes the United Arab Emirates very attractive for the setting up of a new business or expanding the existing one. Companies willing to embrace and get access to a diversified economy can find a great deal of success here. If you’re considering international expansion, then UAE could be your location.
Business opportunities
Increasing domestic consumer demand on the import of goods, which are necessary for the local requirements, as well as a remarkable increase in the volumes of export and re-export, also plays an major role for taking conclusion about establishing business in Dubai. As the population in the city and country grows, the business opportunities are bound to increase.
Advantages of doing business in the UAE
There is a large number free trade zones on the region of the United Arab Emirates, which are formed in order to facilitate business – foreign investors and entrepreneurs. These free trade zones are one of the foundations of the development of the international business in the UAE and great motivation for various large and medium sized international companies into the country.
Company Incorporation in free zone provides foreign investors with the possibility of 100% ownership and company management. There are relevant tax and customs benefits and there are almost no restrictions on the capacity and nature of the activities of the investing funds and their return for companies domiciled on the grounds of the free trade zones.
UAE provides the chance for registration of offshore companies which can carry business restricted to outside UAE only, but at the same time can obtain permanent property in ownership within the country, they can participate in investment projects and can serve as owners of other companies in UAE and abroad.
The UAE, and Dubai, is ranked as one of the safest countries in the world. This makes it favourable to live in the UAE and develop a business.
The UAE is right in the middle of Asia, Africa and Europe, making it a sought after trading hub.
Currently, there is no income tax and corporate tax in the country. The VAT is also at 5%, one of the lowest rates in the world. This makes it a highly desirable business destination.
Above were a few reasons why UAE, and it’s prime Emirate Dubai, is ranked highly in the Ease of Doing Business index year on year, and why it could be yours destination to expand or develop business.
This blog is written by Ms. Manali Chandegala, Partner Relation Executive at Flyingcolour Business Setup, VAT and Accounting Services, Dubai. If you have any query regarding business expansion anywhere across the UAE then please contact us at +971 4 4542366 or email us at info[at]flyingcolour[dot]com.
