The Dubai government’s present and continuous emphasis on promoting businesses and entrepreneurship offer an ideal climate for new companies to establish themselves in the UAE.
According to a new report from Velocity Global, recruitment and professional employment organization, business-friendly regulations, technology investment, relatively good connectivity, and first-class transportation infrastructure have kept the UAE at the forefront of Middle Eastern and African locations attracting foreign tech talent and companies.
Dubai is constructing and sustaining a robust, regulated economic infrastructure that attracts investment and growth to the area. It assures that forming a corporation in Dubai is straightforward.
The biggest reason for conducting business in Dubai is because it is the Middle East’s business hub; nevertheless, the UAE as a whole opens doors for international investments by providing a wide variety of incentives to businesses.
Purpose of Vision
A pillar of the National Agenda in keeping with Vision 2021 is creating and maintaining a sustainable environment and infrastructure. The UAE government aspires to strike a perfect balance between economic and social growth by ensuring sustainable development while protecting the environment.
Its goal is to build high-quality, dependable, long-lasting, and resilient infrastructure, including regional and trans-border infrastructure. It aims to promote economic growth and human well-being, emphasizing ensuring monetary and equitable access for everyone.
The UAE has established Key Performance Indicators (KPIs) to track its progress toward its 2021 goals. Infrastructure-related KPIs (apart from transportation) include:
● The Networked Readiness Index is being improved (telecommunication and IT sectors)
● Improving the index of online services
Infrastructural Rankings for UAE
The UAE was placed first in the World Economic Forum’s (WEF) Global Competitiveness Report 2019. It was ranked;
● 1st in terms of mobile phone subscribers.
● Indicator of electrical access is ranked 2nd.
● Indicator of mobile broadband subscribers is ranked 2nd too.
● Indicator of mobile-cellular telephone subscribers is ranked 2nd as well.
● 2nd in the ICT adoption.
● Indicator of fiber internet subscribers is ranked 4th.
● Indicator of road infrastructure quality is ranked 7th.
● Indicator of air transport efficiency ranks 7th.
● The infrastructure pillar is ranked 12th.
Overall, the UAE was placed first in the region and 25th worldwide, preserving its most competitive economy.
Infrastructure Investments
H. H. President Sheikh Khalifa bin Zayed Al Nahyan authorized the construction of holistic infrastructure and service facilities across the country in 2005, with a budget of AED 16 billion. The order strives to promote economic and social growth while ensuring that infrastructure is of the best possible quality.
The order is divided into two sections:
1. The Infrastructure Industry
It includes residential property and villa endowments, road and bridge building, dam construction, development and maintenance, and the development of fishermen’s harbors.
2. The Economic, Social, and Healthcare Sectors
The President boosted national investments in water and electricity to AED 5 billion and AED 700 million, respectively, under this sector.
The President’s Follow-up Committee on Initiatives has completed many developmental, strategic, and service projects, including thousands of residential units. According to the committee’s general report from 2014, the committee has completed 125 projects worth AED 6.5 billion.
Up to October 2014, seven hospitals, seven dams, three mosques, 35 road projects, four harbors, three water and sewage disposal projects, and three water and power projects had been finished or were in the works.
11 Compelling Reasons to Start Your Own Business in the UAE
Even with minimal investments, UAE is the perfect fit for you with a viable and successful business plan. For hundreds of reasons, the UAE is an ideal location for doing business in the Middle East; here are a few of them:
1. The Expanding Economy
In the Gulf, the UAE has the freest trade policy. It has always been a free market with a high per capita income and a sizeable yearly trade surplus for the past 40 years.
Companies from all over the globe are relocating to the UAE and establishing offshore subsidiaries. As a result, many start-ups and multibillion-dollar giants now call the UAE home.
The emirates state is affluent and provides solid financial conditions for all businesses, resulting in a massive influx of international money into the area. Consequently, the economy will be even stronger.
2. Regulatory Framework
The UAE government wants to boost the economy by attracting international investment. So they have altered their legal structure for international investors who wish to create a firm to help them do this.
Aside from criminal law, foreign persons are subject to an entirely distinct set of rules and regulations. There is very little government regulation, and all legal proceedings are expedited. There is little to no paperwork, and the licensing and registration process is straightforward.
3. Amenities and Infrastructure
The UAE government has gone to great lengths to ensure that international investors have no difficulties operating their enterprises and can access their freelance visa Ajman. This drive has resulted in world-class infrastructure, business parks, office buildings, warehouses, transportation, networking, and utilities.
4. Availability of Manpower
It is no secret that workers from all over the world, both skilled and unskilled, migrate to the UAE to work in media city free zone, particularly from India and other south-eastern countries.
As a result, company owners in the UAE do not need to find workers to manage their operations. Instead, it is available for both companies and employees because taxes are cheap and high in earnings.
5. Relief from Taxes
Learning the local tax regulations and structuring your company setup Ajman media city to pay the least amount of taxes possible is one of the most challenging aspects of launching a business in a foreign nation. The United Arab Emirates offers a variety of business ownership and tax structures.
One that sticks out is the free zones, which provide tax breaks of 100%: no company or income tax and a 30% tax refund on foreign film and television production expenditures.
It implies you may retain your profits from your firm without paying any income or business taxes to the government. Ensure that your businesses are registered within the free zone umbrella.
6. Ownership of the Business
The foreign company investment has up to 49% of the business share under standard foreign direct investment legislation, while the local partner receives 51%. Foreign business owners in the UAE can hold 100% ownership of their companies through various company formations.
7. Worldwide Position
The UAE has one of the most favorable business environments in the GCC region. According to the World Bank’s report, the UAE came in 26th place, ahead of other GCC countries, including Saudi Arabia at 49th.
The United Arab Emirates is also ahead of European nations. The Netherlands is placed 27th, with France and Turkey at 31st and 55th, respectively. It vividly expresses the country’s beneficial business climate.
8. Dubai Expo 2020
The World Expo 2020 is expected to draw 25 million visitors, resulting in a significant increase in demand for local businesses.
Expo 2020 will provide a fully prepared market for a wide range of small and mid-sized enterprises specializing in the unique needs of Ajman media city free zone cost and accommodating the surge of visitors. The additional footfall will help several companies exclusively.
9. Guidelines on Healthcare and Education
Did you know that all residents of the UAE are required to obtain health insurance?
Cleveland Clinic is a well-known multi-specialty tertiary hospital and healthcare provider. The literacy rate in the United Arab Emirates is remarkable at 92.5%. INSEAD, MIT, and NYU are just a few well-known foreign colleges that have set up shop in the city.
10.Location is Key
The most critical aspect in establishing a business is to choose the correct location. The same may be said for a different type of business arrangement.
The United Arab Emirates is strategically located between Europe, Asia, and Africa. There are over 1000 weekly flights to nations all over the world. As a result, the GCC market and the broader Middle East market are widely accessible.
On the one hand, there are China and India, both of which are important trade partners and sources of raw resources. On the other hand, the European Union, a significant economic partner, is on the opposite side of the UAE.
11.Political Stability
The UAE has long-term political stability and maintains an open diplomatic posture worldwide. The UAE has about 100 active diplomatic posts worldwide and almost 200 foreign diplomatic missions. The UAE is comprised of:
● A participant of the Gulf Cooperation Council (GCC), the Arab League, and the United Nations, as well as its agencies
● According to the Global Peace Index 2021, issued by the Institute for Economics and Peace, a New York think organization, it is the third most tranquil country in the area.
Conclusion
UAE is one of the most significant countries to do business, with zero percent taxes, the lowest import tariff, free trade agreements, and a competitive economy. Also, it holds a strategic position, state-of-the-art infrastructure, people from all over the globe, and a pleasant business climate.
All of this not only adds to Dubai’s current infrastructure but also represents the country’s continued efforts to create a thriving economic sector that invites a varied range of international investors. So, if you’re trying to expand your brand globally, you must consider the UAE!