Market Insights: United Arab Emirates

Doing Business in the UAE

The United Arab Emirates (UAE) is strategically located between Europe, Africa, and Asia, and the country has its own rules and regulations.

The UAE has a diverse and multi-cultural society. The UAE has an open economy with successful economic diversification in trade, logistics, banking, tourism, real estate, manufacturing, and oil and gas.

Why Invest in UAE?

When considering investing in a foreign country, an investor must consider a range of economic issues that influence the decision to set up in a country. The UAE government spends more money to establish more jobs and expand its infrastructure, which opens up to utilities a greater private sector involvement for the economy. They have introduced free trade zones, which is a geographical area within the UAE that has been established by the government to encourage direct foreign investment into the country with 100% ownership is an attractive aspect. Also, the UAE has a secure banking system and a stable political system. The state provides a tax-favorable environment for most industries. Mostly the UAE offers a safe and secure family environment with one of the lowest crime rates in the world.

What are the weaknesses?

Unfortunately, just as every country has some incorporation disadvantages, so does the UAE. However, these barriers are far outweighed when considering the advantages of setting up a business in the UAE. Firstly, The UAE is not an English ordinary law jurisdiction. And if a foreigner wishes to conduct business outside a free zone, they must have a local partner owning at least 51% of the company. Also, they interact with federal laws, individual emirate laws, and free zone laws, which can be quite complex and confusing. Moreover, due to various regional militant groups and local political instability could affect investor perceptions. Oil prices are expected to stay high over the near future so that gas, tourism, financial services, and high-tech industries are always volatile, depending on oil prices.