As one of the most forward thinking developed nations, UAE has been the perfect location for investors. It’s accessible from various parts of the world and links shipping routes and is also ideal for transporting goods. Being a developed nation, it also always has the best state-of-the-art infrastructure and facilities provided for both consumers and businesses.
Since it’s also a major business hub, it has invested time and money in building and providing certain areas and free zones just for the purpose of start-ups and industries to flourish. Since the UAE also ranks 11th globally and 1st regionally according to a report by Doing Business in 2019, it provides the factor of ease, for starting business. Some other advantages for investing in UAE include:
- Energy costs are competitive
- In the case for investment for industrial purposes, there are only minimal rent charges
- The government supported banking systems are helpful for high levels of liquidity and competitive financing costs.
- It has the lowest custom fees in the entire region at only 5%
- Several agreements have been made that aid in protection of labour rights.
- Due to the above, the relationship between the employer and employees are healthy.
- Investors are also given the choice of investing and being able to explore other markets in the GCC.
Another new and much awaited incentive is that this year, the ‘Gold Card’ was also approved and was awarded to more than 6,800 investors. This allows these investors to stay longer which is between 5-10 years in the country and in return the country’s investments flourish by the day, currently totaling up to AED 100 billion. It also eliminates the practice of shadow economy.
Secondly, along with the new visa system that rolled in, it was also established that there would be the opportunity for 100% foreign ownership of companies. This according to the Chamber of Commerce, Dubai, is going to be the reason for an immense boost in the market for upcoming small businesses. Previously it was mandatory to have an Emirati sponsor with an ownership of 51% to own a firm outside free zones.
Although that being said, there are challenges that investors may face in the UAE. One would be the implementation of VAT. This was imposed on all goods and services. Hence registering for this can be a major challenge apart from the costs that can occur following it.
Another aspect could be the inclusion of Islamic laws and culture. Making sure that this caters to your business needs while being respectful and also not violating it at the same time, can be a hindrance.
But this need not be reasons to demotivate you from becoming a potential investor in the UAE. You can also take help from a firm like AskMe that can help you out every step of the way and grant you the outcome you need. AskMe can help with services such as expansion and support of your business ideas and guidance through the giant competitive industry in this country that is currently blooming with investors.
You can make use of the helpful enquiry form on their website to get in touch with them and avail their Investment services that can provide you with promising Return on Investment.
You can also access more info on Business Investment through this link.