In the last decade, the UAE has established itself as one of the most prominent business hubs in the world.
Its valuable position in the Middle East allows it access to over 2.5 billion different consumer markets across Europe, Northern Africa, and South Asia – a region that is expected to have a combined GDP of over 12.8 trillion dollars by 2030!
The UAE’s economy has managed to flourish through a global recession, and there are plenty of reasons why entrepreneurs across the globe are shifting their businesses to the GCC, and why you should too!
Here are 3 great benefits of having a business setup in UAE:
1. Strategic location
The 7 emirates in the country have open access to the Strait of Hormuz, one of the most strategically important locations in the world in terms of international trade.
The Strait of Hormuz provides the only sea passage for most of central Asia and the Persian Gulf, and over 20% of all of the world’s petroleum passes through this area!
This gives businesses established in the country an excellent opportunity to interact with, and sell their products to one of the largest customer bases in the international market.
The incredible number of tourists visiting the UAE also represents an exciting business opportunity.
In 2016, the travel and tourism industry supported 617,500 jobs, representing 10.4% of the country’s total employment. It also contributed almost AED 159.1 billion to the national economy, 12.1% of the total GDP!
2. No Taxation
The UAE has very liberal business laws and encourages the formation of new businesses, as is evident by its lack of taxes.
As per the law, none of the following taxes are applicable in the country:
- Personal income tax
- Capital gains tax
- Withholding tax
- Corporate tax
In addition to these, import duties are also very low (around 5%) across the 7 emirates and there are none on goods in Dubai’s Free Zones.
One important thing to keep in mind here is that 5% VAT (Value Added Tax) will be applicable on all companies earning more than AED 3.75 million per year from the 1st of January, 2018.This change won’t affect small businesses much, but it will affect retailers.
3. Safety
According to an online crime index compiled by Numbeo.com, Abu Dhabi ranked as the safest city in the world to live in for 2017! Dubai was also in the top 10.
The UAE places a high amount of importance on safety. Serious crimes (such as assault, murder, etc.) happen to 0.5 in every 100,000 people, compared to a global average of 6 to 8 for every 100,000.
The country is also considered the most politically stable amongst all the GCC members and in the Middle East region.
The security and political stability means new businesses are given the perfect environment to flourish and become profitable.
A company setup Dubai is particularly recommended, as the UAE’s commercial capital is already home to foreign investors from more than 200 different countries!