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Why UAE is An Ideal Investment Destination

Why UAE Is An Ideal Investment Destination Min

There are many reasons why the UAE has attracted many foreign investors and entrepreneurs in the past decade. A favorable business environment, growing economy, stable political situation, favorable tax regimes, and straightforward company and business registration are the main reasons foreign investors are willing to extend their businesses in the UAE. Excellent infrastructure coupled with professional expertise and personalized services are other reasons that distinguish the UAE from other business hubs around the globe. The reasons that distinguish the UAE as an ideal investment destination are: 

Economic stability

Despite the economical effects brought by the pandemic, UAE ranks first in the MENA region in the World Competitiveness Yearbook (WCY) 2021 published by the International Institute for Management Development (IMD) in Lausanne, Switzerland— all the while maintaining its global position as ninth in the top 10 most competitive countries in the world.

The business and financial strategies adopted by the UAE government aim at enhancing the country’s status by diversifying its national income. The advantages of the country that allows it to maintain its economic stability are: 

  • Strategic location
  • Strong financial reserves
  • Large sovereign wealth funds
  • Healthy international relations
  • Consistent government spending on infrastructure, digital transformation, and innovation
  • The progressive policy of economic diversification
  • Multi-speciality free zones
  • Increased foreign direct investments (FDIs)
Owning the best facilities for running a business

As stated before, the UAE presents a favorable and vibrant business environment. The UAE was ranked 16th globally, as per the World Bank’s Ease of Doing Business Report 2020. Some of the country’s remarkable rankings in the various indices are as follows:

  • 1st globally in getting electricity
  • 3rd globally in dealing with construction permits
  • 9th globally in enforcing contracts
  • 10th globally in registering property



Variety of business premises and jurisdictions

The large variety of premises and the flexibility to conduct business anywhere in the country distinguishes the UAE from many other business hubs worldwide. Choices of locations include free zones, industrial areas, and commercial buildings. These jurisdictions provide business owners with numerous options to conduct their business in the best way possible, and above all, make their business cost-effective. The remarkable points regarding this massive advantage the UAE provided for foreign investors are:

  • There are more than 40 free zones that allow 100% foreign ownership of the business,
  • The UAE provides state-of-the-art industrial and commercial areas
  • It hosts high-profile conferences, international exhibitions as well as trade and investment events.
Skillful and diverse workforce

The UAE’s talent and labour force are among the most skillful in the world. Its multi-cultural population enhances workforce productivity and creativity. The country’s official language is Arabic, with English and other major languages also being widely used.

With the UAE’s new visa system, qualified workforces in the health, scientific, technological, and cultural sectors have been attracted to the UAE. The UAE is seeking to be the first incubator of highly skilled professionals and talented human capital in dynamic economic sectors.

Investment incentives

There are many attractive investment incentives are:

  • 100% foreign ownership in Free Zone
  • 100% foreign ownership in Dubai Mainland
  • 100% profit repatriation
  • Renewable 10-year residence visa
  • Competitive financing costs, high levels of liquidity, and a robust banking system
  • No foreign exchange controls
  • Strong appreciation and fully convertible currency
  • Low inflation
  • Low customs tariffs
Open economy

The UAE aims at private-sector growth and competition and enforces regulations that prohibit monopoly. The country has strong ties with key regional and international trade associations. The UAE:

  • is a member of the World Trade Organization (WTO) since 1996.
  • is a member of the Greater Arab Free-Trade Area (GAFTA) in which all GCC countries participate.
  • concluded Free Trade Agreements with Singapore and the EFTA.
  • Is cooperating with the GCC countries to conclude the Free Trade Agreements with the EU, Japan, China, India, Pakistan, Turkey, Australia, South Korea, and Southern Common Market (MERCOSUR).
Political stability

The UAE has long-term political stability, with an open diplomatic policy worldwide. The UAE has more than 100 dynamic diplomatic missions abroad and about 200 foreign diplomatic missions in the country. For this matter, the UAE is:

  • A member of Gulf Cooperation Council (GCC), Arab League, and the UN and its agencies.
  • The 3rd most peaceful country in the region according to the Global Peace Index 2020. This is compiled by Institute for Economics and Peace, a New York think tank.
Social stability

The UAE is well-known for being one of the ideal places for living and investing. It is a safe place, and tolerance and respect for diverse cultures are innate to the UAE due to the fact that over 90% of the population consists of expatriates. The UAE is ranked 1st in the Arab region in the general index of the World Happiness Report 2020. The UAE:

  • has a minister of tolerance and launched a year of tolerance and a national program for tolerance – the UAE government has adopted effective anti-discrimination and anti-hatred regulations
  • hosted the Human Fraternity Meeting, with the aim to enhance dialogue on the coexistence of humans
  • adopted effective regulations to support vulnerable community groups.

UAE remains on the list of the top ideal investment destinations all over the world as it continues to expand and innovate in all aspects; from information and technology, to socio-cultural development, high-end infrastructure, and many more. 

How Can Choose UAE Help

Choose UAE’s company formation specialists can guide you in the right direction in choosing the ideal location for your business in Dubai and the UAE. We are official partners to most of the Government Authorities in the UAE so you can be assured that there will be no license processing fee, no hidden fees and your license renewal cost remains the same, yearly.

Our goal is to provide the best services possible to make your business setup done smoothly and efficiently. Contact us for more details.

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