Known as the second-most populous city in the United Arab Emirates, the Emirate of Abu Dhabi has been one of the prominent investment destinations for worldwide investors. It stands as the second-largest Emirate in the region covering a population count of 1.45 million. The region has successfully transformed itself from an oil-based economy to the non-oil based. When it comes to the contribution of the Emirates, the region accounts to two-third, which counts $400 billion UAE economy. The ground of Abu Dhabi is now seen as an investment ground for various business industries. One such upcoming business domain turns out to be Medical Tourism.
As the region is on its way in expanding its horizon for the business industries, a recent move has been made towards the medical tourism industry. Mubadala Investment company has recently signed an MoU with Nirvana Travel and Tourism to work together and lead the medical tourism industry in the targeted destination. This move will bring in multiple areas of collaboration in the markets covering GCC, MENA, Russia, China and India. The investment has also boosted the opportunities for the business investors who are looking forward to an opportunity to start a business in Abu Dhabi. The continuous cooperation between the government and private companies will have a drastic impact to establish Abu Dhabi as an international medical hub.
Further, the initiative projects to attract patients from more than 80 countries, and to drive the market of Abu Dhabi as a global key player in the medical tourism industry. This move is considered as an initiative towards sustainable growth in medical tourism blending Abu Dhabi Economic Vision 2030.
The Medical Tourism Market- Global and UAE
The medical tourism market is one of the booming markets prevailing in the global scenario. Every year it is growing with a spike of 15 to 20 per cent. According to Grand View Research, the industry is expected to hold a value of $179.6 Billion by 2026. Abu Dhabi is also gearing up for the race, and apart from the stated above collaboration, the Abu Dhabi Department of culture and Tourism has signed a memorandum with the Medical Tourism Association (MTA) to providers and government in creating successful medical tourism programs. The Medical Tourism is expected to contribute US$708 million to the GDP by 2020, with a 13 per cent year-on-year revenue growth. The Government has also planned to set up 34 pharmaceutical manufacturing factories by 2020, which holds a market value of AED 9.5 billion at present to AED 25 billion by 2025.
Why Abu Dhabi?
By now, you have got a gist of why it is proficient to go ahead with the medical tourism industry in the region of UAE. When it comes to UAE, investors prefer to invest in the location because of the following benefits.
1.100 Percent Repatriation of Capital Invested and Profits Earned
When it comes to the investment proceedings, you don’t have to worry when it comes to the region of UAE. The Emirate of Abu Dhabi provides enough flexibility for the investors to take back the total capital and profits at the extreme case of company liquidation. This means that you will be completely free and don’t have to worry regarding any tax that needs to be paid on the profits earned.
2.Complete Income Tax Exemption
The next driving factor that encourages the business owners to come ahead and invest in Abu Dhabi is the entire tax exemption that the country provides to global investors. Recently, the UAE has implemented the concept of VAT which got fixed at a rate of 5%. Apart from that, you don’t have to pay any tax on the income you generate throughout a business cycle.
3.An International Exposure
By incorporating a business in UAE you get a better option to place your company in the international market. The region holds robust connectivity with the other Emirates along with the international boundaries. Additionally, the location of Abu Dhabi contains different zones like Mainland, Free Zone and Offshore that provides flexibility to the business owners to come ahead in the zones depending upon the flexibility of their investment.
4.Upcoming Expo 2020
The forthcoming World Expo 2020 is another driver that has been provoking the business owners and investors to come forward and invest in the region of Abu Dhabi. The event, which is going to get held for a period of six months is expected to rope in more than 25 million visitors, which stands as one of the biggest business platforms that a business owner can target to expand their business accordingly.
Thus, you can see that there exist enormous opportunities for business investors to come forward and invest in the region of Abu Dhabi. Now, once you hold a firm decision, it is recommended to go ahead and get in touch with the business experts as the business initiation process involves multiple documentation proceedings. Also, the business owners need to hold a tourism license before starting a tourism business in the region of UAE. With the help of right guidance, you will be able to take the necessary steps at a faster pace.
We at Commitbiz Consultants take utmost care of our esteemed clients and help them to set up their business across UAE, Oman, Bahrain and Qatar. Standing as one of the best business consultants in Dubai, we are known for our approach, technique and delivery of customized solutions. Our business experts are well-versed with the business activities and take the initiative of understanding your business needs and providing the required solutions accordingly. In case you hold any doubt, talk to our experts. Do contact us today-we’d be glad to assist.