Why It Is a Good Idea for Foreign Investors to Invest in the UAE

The United Arab Emirates is one of the few countries with a fully digitalized economy, a zero percent personal income tax rate, a high safety index, and a hundred percent foreign ownership of all key sectors. It’s well-known for its low costs of high-end items and its relatively stable government. However, if you have an entrepreneurial spirit, a knack for innovation, or a penchant for exploration, you have a lot of opportunities ahead of you.

It would be wise for foreign investors to consider the United Arab Emirates as a potential location for their investment. The UAE is the second-largest recipient of foreign direct investment (FDI) in Western Asia, according to the Global Investment Report of the United Nations Conference on Trade and Development (UNCTAD).

Dubai is one of the most advanced emirates and the country’s second-largest metropolis. Currently, Dubai, UAE, is home to a sizable expat community. Economic stability, cheap energy costs, a tax-free business climate, few regulations on the repatriation of revenues, and so on are among the primary factors drawing foreign investment.

Why Do Foreign Investors Choose the UAE?

Investors from other countries go to the United Arab Emirates for various reasons. Among the most important are the following:

1. World-Class Infrastructure.

Among the best in the world, the United Arab Emirates’ infrastructure is of the highest standard. The UAE has invested smartly in key accelerators, such as transportation, power, telecommunications, and green energy.

Even though the United Arab Emirates is a desert country, many visitors are surprised to see flowers growing along the highways. The United Arab Emirates (UAE) is home to a world-class infrastructure for transit by land, sea, and air, as well as a cutting-edge internet service that has kept it at the top of the global rankings for mobile network speed for many years.

The UAE frequently ranks first among Middle Eastern countries on measures of “ease of doing business” thanks to its “smart government” efforts.

2. Robust Legal & Security Framework.

Many factors contribute to the United Arab Emirates (UAE) economic success and stability, including a robust legal and security framework, substantial financial reserves, and a sizable social wealth fund.

With one of the world’s lowest crime rates, the country is a safe place to live. This is something that is experienced by every citizen, resident, and tourist. In terms of safety, the United Arab Emirates (UAE) ranks higher than both Switzerland and Japan in a global database.

3. Global Trade and Logistics Hub.

The United Arab Emirates has become a magnet for creative thinkers and entrepreneurs worldwide. The country serves as a regional hub for several international corporations as a center for United Nations relief efforts.

In aviation, direct flights are accessible to more than 250 locations, and the United Arab Emirates provides shipping routes to over 400 destinations. The country also serves as a major venue for international conventions and trade shows, including the recently held Dubai Expo 2020. It shows that it has the power to bring nations together.

4. Innovation.

Because of its central location on the globe, this ecosystem has an abundance of resources at its disposal. These include people with a wide range of expertise, equipment, technologies, and capital. The UAE is home to a thriving business community that supports various industries, including trade, heavy industry, entertainment, aviation, medicine, and agriculture.

The UAE has emerged as a global leader in a wide range of cutting-edge technologies, including pesticide-free, year-round vertical farming; stem cell therapy; sophisticated materials used in aviation; green power; vaccinations; and transportation.

The UAE is home to the United Nations’ International Renewable Energy Agency (Irena), and the country’s sovereign wealth funds are prominent advocates of green power nationally and internationally.

5. Tax-Free Regime.

Individuals are exempt from income taxation in the UAE. The country is home to more than 50 “free zone” that cater to a wide variety of sectors, including the financial sector, manufacturing, transportation, aviation, commodities, and even the fresh floral industry. Foreign investors are permitted tax exemptions and full ownership in the free zones. There is no ambiguity in the customs law, and tariffs range from 0% to 5%.

Foreign nationals of any origin are encouraged to set up completely-owned businesses in the UAE. This amendment resulted from the implementation the Commercial Companies Law in 2020, which no longer requires the presence of a UAE local agent for a foreign company intending to form a branch and conduct business in the UAE.

The United Arab Emirates (UAE) is open to foreign investment in various economic sectors, including but not limited to retail, manufacturing, agriculture, services, academic institutions, hospitals, and building infrastructure. There are currently over 2,000 licensed economic activities functioning in the country.

6. Cultural Diversity & Tolerant Society.

The UAE is home to a culturally and religiously diverse population and prides itself on being inclusive. There is a Ministry of Tolerance inside the government that spreads tolerance throughout the country. The UAE has joined the rest of the developed world in cutting the workweek from five days to four and a half, with weekends switching from Friday and Saturday to Saturday and Sunday. The change will bring the country closer in line with global markets.

The change would strengthen worldwide business connections for thousands of UAE-based enterprises and enable smooth financial, trade, and economic transactions with nations that follow a Saturday-Sunday weekend. It will increase the commercial potential and the safety, comfort, and pleasure of daily life in the United Arab Emirates.

7. Startup Nation.

Forbes and Crunchbase have compiled a “watch list” of 50 UAE startups. It’s only the beginning of the story. Among them are ekar (2016), Washmen (2015), and Eureeca (2014). (2013). The UAE startup scene attracts entrepreneurs from all around the world.

Norwegian-born entrepreneur Vilhelm Hedberg founded and currently leads the region’s rapidly expanding ekar automobile sharing app. In 2016, he started the first hourly car rental service in the Middle East under the name ekar. In 2016, the RTA picked ekar as the provider for a 100-vehicle car-sharing scheme, together with other significant clients like Emirates Airlines and Etihad Airways.

8. A Talent-Attracting Magnet.

The UAE attracts a diverse range of people from all over the world. Workers are the lifeblood of any enterprise. Many different cultures are represented in the Emirates. The UAE has a well-developed system to guarantee workers are treated properly, including the Wages Protection System. The system protects workers’ income, the mid-day break regulation (no outside work from 12.30 pm to 3 pm during warm months), and the updating of labor procedures to reflect modern needs and provide more clarity.

9. Great Neighborhoods.

The United Arab Emirates (UAE) is home to several fantastic communities perfect for expat workers. Both affluent areas like The Palm Jumeirah and more modest neighborhoods like Al Quoz in Dubai offer convenient access to activities that the whole family can enjoy.

In addition, community centers, shopping malls, and parks in the surrounding neighborhoods are numerous. There are many options for those who enjoy spending time outdoors. Nearly all neighborhoods are within a half-hour to an hour’s drive of beautiful, white-sand beaches. The country is also home to the best restaurants with various cuisines.

Are you in the mood for some fresh, local seafood? Your first stop in Dubai should be at the Dubai Waterfront, a futuristic fish market. It is a unique experience in itself.

Begin Your Investment in the UAE with ExpressPRO.

Do you still find it hard to understand why people from other countries desire to start businesses or invest in the UAE? Suppose you want to know more about why it’s a good idea for international investors to invest capital in Dubai and the other emirates. In that case, you should talk to the professionals at ExpressPRO.

Our team of corporate legal consultants is here to walk you through the process, clarify your options, and recommend the optimal business structure for your needs in the most advantageous jurisdiction. Don’t hesitate to get in touch with us!

Set up Your UAE Company with ExpressPRO

Please fill out the form below so our team can get in touch with you and guide you through the complete process.

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