8 Reasons of incorporating the business in the UAE
As a regional business hub, the UAE is known for its robust economy, dynamic marketplace, cultural diversity, modern infrastructure, and strategic initiatives. Its strategic location links the East and West, with numerous free zones attracting specialized sectors. With greater returns in the technology, professional, and industrial sectors, it’s the time for incorporating the business in the UAE.
The UAE is diversifying and maintaining a healthy investment environment for both Emirati nationals and foreigners. Being a real deal in the MENA region, the UAE is strengthening its position as an international business hub. In this article, we highlight the top reasons of incorporating the business in the UAE.
Leading motives of opening a business in the UAE
Starting a business in the UAE can be a strategic choice for long-term success, as it requires thorough due diligence and a thorough understanding of essential components.
Vast range of opportunities
The UAE’s economic diversification has led to growth in key sectors like technology, banking, healthcare, and education, with a favorable ecosystem and robust infrastructure. The tourism sector, particularly in Dubai and Abu Dhabi, offers hospitality, luxury services, niche markets, as well as travel agencies.
Multiple business structures
The UAE offers free zones as business hubs, providing incentives like full foreign ownership, exemption from import and export duties, and unrestricted repatriation of profits. These zones cater to diverse industries, such as technology and manufacturing, creating specialized environments for business growth. Some in-demand free trade zones in the UAE are the following.
- Dubai Multi Commodities Centre
- Abu Dhabi Global Market
- Dubai International Financial Centre
- Khalifa Port Free Zone
- Dubai Maritime City
Continuous government support
The UAE’s growth is attributed to its support for enterprises and SMEs, with business-friendly policies and a tax-free environment. Its government’s commitment to entrepreneurship is evident in initiatives like Dubai SME. The National SME Program and Future Industries Lab aim to promote growth and development, empowering young Emiratis and building industry capacity for the future.
100% business ownership
The UAE’s Commercial Companies Law has been amended to allow foreign investors to own a company in non-free zone areas without a local partner. This change, introduced in early 2021, has been praised by the business community, boosting foreign investment and encouraging more expats to settle in the country.
Enormous tax savings
The UAE’s low corporate tax at 9% attracts both Emirati entrepreneurs and multinational companies. Its friendly political and economic environment, exemptions from taxes, and no personal income tax make it an attractive destination for startups and established corporations, making it a central hub for small businesses.
To operate in free zones and enjoy tax benefits, companies must establish specific contracts and legal forms, such as free zone establishments or limited liability companies with a resident director. They can obtain commercial licenses and enjoy tax-free operations under specific conditions.
Diverse talent pool
The UAE is enhancing its business and leisure opportunities by building a competitive infrastructure, focusing on dependable resources and advanced technology. The labor market attracts skilled professionals worldwide, offering companies numerous job opportunities. The UAE’s location provides easy access to mature and emerging markets in the East and West, making it easier for globally minded businesses to engage with clients worldwide.
A way to the MENA
The UAE’s strategic location and advanced infrastructure make it a preferred gateway to the MENA region. Accordingly, it is delivering access to a market of over 450 million people (mostly well-off). Companies can benefit from the UAE’s commerce, investment, and innovation hub. Whereas, the country’s commitment to development makes it an ideal environment for startups and enterprises.
Diversity with women inclusion in business
Dubai’s government is encouraging businesswomen to enter the sector, offering mentorship, investors, and support through specialist business incubators. This trend is generating positive results and will contribute to future growth. The UAE’s economic policy focuses on diversification, aiming to reduce reliance on oil and gas income.
4 Top successful business opportunities in the UAE
Let’s discover some of the best profitable corporate prospects for starting a business in Dubai and the UAE.
Technology industry
Dubai’s focus on becoming a leading smart city has fueled a high demand for professionals skilled in developing advanced technologies for energy, public safety, transportation, healthcare, and mobile app development.
E-commerce and digital industry
Dubai and the UAE have seen significant growth in e-commerce due to high internet penetration rates and government promotion of digital transformation. Customers are seeking specialized and customized items, making online business ideas in Dubai valuable. Digital marketing and social media consulting are essential components for success, and entrepreneurs can establish social media consulting firms, content creation services, or digital marketing agencies.
Fintech industry
Dubai’s financial sector is thriving, attracting entrepreneurs to offer mobile payment solutions, financial consulting services, peer-to-peer lending platforms, evolving preferences, focusing on customer needs, and innovation.
Tourism and hospitality
Dubai’s global tourist destination attracts millions of visitors annually, leading to business ideas in the hospitality and travel industry. Luxury hotels, tour operators, and travel agencies are popular. Dubai’s innovation and spectacular events demand professional event planning services, including corporate event management, exhibition organizing, and wedding planning.
Key takeaways and future insights
Here are the noteworthy findings and statistics from this blog.
- The UAE is a global economic hub that promotes private sector growth, competition, and adherence to regulations.
- It is a member of the WTO and GAFTA, and has concluded Free Trade Agreements with several countries.
- The UAE is the 25th most competitive economy globally and is a leader in the MENA region.
- Its Economic Principles, inspired by the principles of the 50, aim to position the country as a globally integrated economy with adaptable legislation, a forward-thinking mindset, digital infrastructure, and secure systems.
- The UAE is open to international and regional trade, attracts top talent through infrastructure, investment in the digital economy, and youth development.
- It maintains strong financial systems, upholds principles of transparency and the rule of law, and is developing the world’s finest transport and logistics infrastructure.
- The UAE offers considerable commercial investment prospects between 2025 and 2030.
- With a predicted GDP of $736.81 billion by 2030, significant investment sectors include healthcare, technology, renewable energy, economic diversification, and financial services.
- Forecasts predict 1 million SMEs in UAE by 2030, up from 557,000 SMEs in mid-2022 (contributing 63.5% to non-oil GDP).
- Dubai company setup costs vary from AED 19,033 to AED 41,033, requiring careful planning and budgeting for smooth start-up process.
Kick-off your new entrepreneurship journey in the UAE with the help of professional business consultancy KWS Middle East right away.
