Overview of United Arab Emirates
- United Arab Emirates (UAE) established on 2nd December 1971 had 6 emirates at the time, namely Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain & Fujairah. On 10th Feb 1972, Ras Al Khaimah also joined the UAE, thus making the famous 7 emirates of UAE. Each emirate has a separate ruler and together they jointly form the Federal Supreme Council.
- UAE, located in western Asia on the Persian Gulf and having Saudi Arabia, Iran, Qatar, and Oman as its neighbors, is centrally located between Asia, Europe, and Africa, making it an extremely sought-after trading hub internationally.
- Arabic is the official language and Islam is the official religion of UAE.
- UAE is considered to be the 7th largest oil-rich country globally and Late His Highness Sheikh Zayed, the first President of UAE, along with members of the Supreme Council has turned the oil economy into a diverse trading, business, real estate, and tourism-driven economy, thus reducing the reliance on oil income.
- There is zero income tax in the UAE, one of the prime reasons for international investors flying to the nation. However, 5% VAT (Value added tax) has been implemented from January 2018.
- UAE’s wealthy international profile has made it a regional power center and attraction for worldwide entrepreneurs to establish businesses in UAE.
- The World Bank has ranked UAE at the 26th position based on its economy and regulatory system in its “Doing Business 2017 Report”. UAE is the second-largest economy in the GCC region.
- Currently, UAE enjoys a high volume of tourists from all over the world and the number is expected to go up significantly due to the upcoming Expo 2021.
- UAE primarily allows business entities to be registered either as a mainland company, a free zone company, or an offshore company. All seven emirates have separate departments of economic development, several other Government departments, and federal authorities. UAE also has several free zones across all seven emirates having their own controlling single-window administrative Government authority
- In 2020, due to the Covid19 pandemic, EXPO 2020 has been postponed to 2021. However, UAE has successfully controlled the pandemic situation and its economy functioning normally since 24th April 2020. The leadership of the UAE has extended unbelievable support to ex-pat residents living here by way of huge economic reliefs. These actions from Government will surely attract millions of businessmen from across the world to choose UAE as their business and residence hub in the coming time.
Why to Do Business in United Arab Emirates?
- Stable political environment in UAE United Arab Emirates
- Well developed infrastructure like roads, bridges, metro etc.
- World class sophisticated logistic facilities like airports and ports.
- Strong law and order situation where by people feel safe to stay, alone or along with family.
- Almost all premier educational institutions have their facilities in UAE, bringing world class educational schools, nurseries and colleges to UAE.
- State-of-the-art healthcare facilities coupled with mandatory health insurance for all residents in UAE. No one can suffer without medical assistance 24 hours and 365 days.
- All means of hospitality and entertainment as all world famous hotel brands, restaurants, night clubs and cinemas available to unwind after day long work or refreshing weekend time.
- Prestigious shopping malls and high street shops offering wide range and variety of products for all worldwide brands. After all, shopping is a great stress reliever!
- Local banks, international banks, investment banks and globally recognised financial institutions make it easier for businesses to function smoothly with banking transactions and loan arrangements.
- Well developed stock market and real estate / bullion industry making it easier for investors to have many options to invest and earn appreciation or regular income of dividends and rent.
- Due to a strategic geographical location on world map, UAE enjoys status of an international trading hub, serving as a middle station among Asia, Europe and Africa. UAE also has super busy gold souk, textile market, food market, and electronic market, perfume market & scrap yards.
- Government has designated many areas on Mainland and in free zones for industrial and manufacturing units making it easier to obtain required approvals and having supporting infrastructure and ancillaries around the specific location.
- Government is constantly investing heavily on technology to upgrade procedural work in departments and ministries along with trainings and up gradation in human assets within Government systems to provide seamless world class experience to businessmen from around the world conducting operations in UAE. Many of the processes are taking place online without person to visit physically thus creating secured and legitimate transactions and processes without human interference.
- International business transactions feel safer as UAE Dirham; a local currency is pegged against USD making it stable against USD. This hedging makes all international trading houses, foreign currency traders and commodity traders to work in UAE as a safe financial haven.
- 0% income tax is another prime factor attracting huge international interest. Government has entered into double tax avoidance agreement with several countries in order for an individual or corporate not to pay tax in home country if he or she is permanent resident in UAE.
- Government policies open to receive people from all over the world regardless of religion or education making it a respectable place to stay and do business.
- Uninterrupted supply of water, electricity and telecommunication services across all parts of UAE.
- Implementation of Economic substance regulation has put UAE in white list of reputed international financial hubs 2019 onwards.
Educate Yourself About Difference Jurisdictions in UAE
There are three types of jurisdictions in the UAE: Mainland, Freezone and Offshore. What is the difference among Mainland, Freezone and Offshore company registration in UAE?
One must choose the jurisdiction, based on the business plan and business goals to be achieved.
We have created a detailed FAQ for making it easier for an investor to understand.