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Why Set Up a Business in the UAE: Benefits, Opportunities, and Plans
Are you considering starting a business in the United Arab Emirates? With its dynamic economy, strategic location, and business-friendly environment, the UAE is a prime destination for entrepreneurs looking to grow their businesses. Set up business in UAE is becoming increasingly popular. Known for its entrepreneurship and start-up-friendly policies, measures, and initiatives, UAE isn’t just being hailed as the global hub for entrepreneurship and start-ups but also as an attractive destination for some of the most impressive talents in the world. The UAE offers a business-friendly environment with low taxes, a skilled workforce, and strong infrastructure.
“Elevate your business to new heights in the UAE”
Dubai is a top destination for millionaires, known for its luxury lifestyle, high-end shopping, and fine dining. The city is home to some of the world’s most luxurious hotels, resorts, and real estate properties. With its warm weather, beautiful beaches, and diverse culture, Dubai is a popular tourist destination for many affluent individuals.
According to The National News, Dubai has recorded an 18% increase in multimillionaire residents in 2022. Also, the report suggests that Dubai’s attraction between millionaires is likely to grow in the coming years, which is good news for the local economy.
The government has also introduced various plans to attract foreign investment and support the growth of small and medium-sized enterprises. When you’re ready to set up a business in the UAE, there’s no better place to go!
Benefits: Set Up a Business in the UAE
Starting a business in the UAE is a good decision. With an expansive set of benefits, doing business in the UAE has a plethora of advantages. Among them are security and safety, world-class infrastructure and technology, availability of qualified personnel, geographic convenience across central Asia and Africa, as well as access to high-quality resources such as ultra-modern airports, seaports and industrial zones, making it an ideal spot for investment in the Middle East. Additionally, it has a well-connected transportation network making the movement of goods easier. Listed below are some of the benefits of doing business in the UAE
UAE is located in the middle of the east and the west and is, therefore, able to connect the two parts of the world. Since there are both airports and seaports in the country, logistics are pretty straightforward than ever before.
There is no doubt that the UAE government and the concerned regulatory authorities take business and the economy very seriously. Therefore the government has created the political and economic conditions that facilitate businesses of all sizes to operate effectively and profitably.
No Income Tax
The main reason why UAE attracts investors so much is that it is a tax-free country. As a result, they do not have to pay any tax to the government in the form of income tax. However, businesses may be required to pay VAT in the form of a flat rate of 5% for specific activities.
Easy Visa Process
It is always a hassle to get a visa in any country where you want to set up your business if you are a foreigner. Despite this, you can easily acquire a residential visa for UAE and an employment visa. If you want to establish a business in UAE, you can hire an experienced business setup consultant like Choose UAE who can assist you with all the related matters, from getting a visa to establishing a company.
Opportunities: Set Up Business in the UAE
The UAE is a country of abundant business opportunities. A major hub for international business, the UAE offers several popular industries to explore, such as tourism, finance, construction, and technology. In addition, freelancing presents various opportunities for entrepreneurs and remote workers, with the UAE’s visa options providing flexible terms for those wanting to venture into the region. Listed below are some of the best business opportunities in the UAE
Dubai Chamber of Commerce’s research predicts that the UAE e-commerce market will be valued at $9.2 billion in 2026, and the sector’s proportion of total retail sales in the UAE is expected to reach 12.6 percent by the same year. The e-commerce business in UAE has seen an acceleration in growth in recent years, attracting investors to establish businesses in the industry. Additionally, residents in UAE are increasingly turning to online shopping, thus, the potential for this market continues to grow year after year, particularly after Covid-19.
The ICT market in UAE is one of the most appealing in the Middle East, driven by digitalization and the increased implementation of innovative technologies like cloud computing, big data analytics, IoT, and AI. As per GlobalData, a data and analytics company, ICT expenditures in UAE are predicted to increase by 8% annually until 2024 and reach $23bn by that year.
The restaurant industry, including cafeterias, coffee shops, tea shops, juice, and beverage establishments, is highly financially beneficial. This is because of the rise in tourism and the large number of expatriates residing in the UAE as a second home. As a result, opening a restaurant in the UAE is a promising and lucrative business opportunity.
The healthcare sector attracts individuals from neighbouring nations owing to its cost-effective healthcare services in UAE. To establish a healthcare clinic in UAE, expert guidance is required to obtain the necessary permits and visas for your healthcare professionals.
UAE has a large expat population of around 85%, which creates a significant demand for educational services, particularly those that cater to multiple languages. Starting a school, college or any educational service requires accreditation and permits. Additionally, building the necessary infrastructure is mandatory unless buying a franchise.
With its outstanding infrastructure and key location, UAE is ideal for logistics activities. It plays a critical role in the supply chain, and businesses fulfilling this need are highly sought after. Additionally, transportation services, including long-distance and local taxi services, are essential for locals and tourists to navigate the city.
UAE offers a wealth of business opportunities, which generates a high requirement for financial services like bookkeeping, accounting, and auditing. Professionals with knowledge in this field can capture a share of the market, especially if they focus on small businesses and start-ups, avoiding competition with the big international accounting firms in the region.
Business Consultancy Services
Business consultancy services present a highly lucrative opportunity in UAE. As an expert in global expansion, one could assist other companies in the region, as there is a high influx of entrepreneurs and new start-ups. It is crucial to obtain all required licenses before starting operations.
Recruiting Agencies, including employment agencies, staffing resources, and HR agencies, are a rapidly growing industry in UAE as numerous investors from around the world are setting up businesses there. Recruitment is one of the low-cost business setups in the UAE for professionals with a background in human resources.
The entertainment industry, including nightclubs, bars, and other similar venues, is a rapidly growing sector in UAE. UAE, in particular, is an extremely popular tourist destination, which has led to a surge in demand for entertainment options. This has created a favourable environment for businesses operating in this sector, as it is one of UAE’s most profitable and successful business ideas. With its diverse entertainment options, the city caters to the interests of residents and tourists alike.
Plans: Set Up a Business in the UAE
The UAE experienced rapid economic growth in the 1950s due to the oil boom, which led to the development of skyscrapers and multinational businesses in the city and attracted talent to drive further growth. Dubbed the “Manhattan of the Middle East,” the city became known for its extravagance, shopping, and luxury. However, the World Wildlife Fund reported in 2010 that the United Arab Emirates, of which UAE is a part, had the largest ecological footprint due to private jets, limited public transportation, human-made islands, and high fuel consumption. In response, UAE plans to become the world’s most sustainable city by 2050, with planned investments of $163 billion to address energy, water, and construction needs in a sustainable manner.
The United Arab Emirates is developing a strong foundation for the growth and success of industries focused on knowledge and the future. Additionally, it aims to become a leading center for businesses that involve innovation, artificial intelligence, and entrepreneurship. To accomplish this, the UAE has implemented plans to promote sustainable economic growth through science and advanced technologies and utilizing exceptional talent, skills, and abilities.
In 2017, HH Sheikh Mohammed bin Rashid Al Maktoum, (the Vice President, Prime Minister, and Ruler of UAE) launched the initiative known as ‘UAE Centennial 2071’, which aims to make the United Arab Emirates the top country in the world by the year 2071, which marks the country’s 100th anniversary. The initiative focuses on four key areas: future-oriented government, high-quality education, a diversified economy based on knowledge, and a happy and united society.
As part of the plan to have “the best economy in the world,” the UAE seeks to become a leading destination for the brightest minds, ideas, and talent, providing excellent business opportunities, a stable environment, and advanced infrastructure. The UAE is continuously increasing investments in sectors such as Biotechnology, Artificial Intelligence, Cognitive Sciences, and Nanotechnology to further strengthen its rank as a global leader across multiple sectors.
If you want to set up a business, the UAE is one of the best places to do it. With its benefits, opportunities, and plans, there is no doubt that your company can thrive in this country. Start planning your UAE business today with Choose UAE. As a company formation advisory firm, Choose UAE offers unbiased and current advice on company formation and provides business support to entrepreneurs and companies that want to set up business in UAE.
How Can Choose UAE Help
Choose UAE offers comprehensive assistance throughout establishing your business in the United Arab Emirates. Our team, comprised of experts in company formation, marketing, accounting, and government relations, is committed to supporting entrepreneurs like you, from the initial stages of setting up your business to ensuring its successful operation.