Business Sectors with 100% Foreign Ownership in the UAE

The idea of investing in a business turns out to be a crucial and risky decision. Regardless of whether you are a newbie or an experienced business professional, the investments are made with the expectation of earning a profit or receiving a higher rate of return on the investment made. At this point, imagine if you need to involve a stranger as your business partner, holding the majority of shares, just because he or she turns out to be a local person.

Well, if you are a business owner and looking for a platform to invest in, then you have landed at the right place. The United Arab Emirates turns out to be the perfect solution to your problem. According to the latest report, the government of UAE has taken a drastic step of allowing 100% foreign ownership to the business investors without the intervention of any local sponsor. Sounds great, right? This article is going to give you information regarding why most entrepreneurs prefer a business setup in UAE. Keep reading ahead.

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Business Scenario in the UAE

Along with the passing of time, the UAE has been transforming itself as a global business destination. Dubai, the heat of UAE has become a pivotal hub that has lifted the GDP of the country to a great extent. According to a report published by Doing Business in 2019, the United Arab Emirates has been ranked 11^th in the ease of doing business. The UAE serves as home to businesses ranging from small businesses to multinational companies. The GDP of the nation is expected to grow to $460 billion by 2019, i.e. 2.8%, and by 2020, it is expected to touch 3.8%, backed by Dubai Expo 2020, which is expected to attract 25 million global tourists. The Expo is a business partnership platform that will not only improve the investment inflows but will also build up a robust global network.

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The Recent Initiative

Sheikh Mohammed bin Al Rashid, ruler of the UAE, has taken a drastic step by approving several business sectors eligible for 100 per cent foreign ownership. A total count of 122 economic activities across 13 areas has been taken into consideration. These sectors include renewable energy, space, agriculture, manufacturing, transport and storage, supply chain, logistics, hospitality and food service, information and communications, etc.

We can say that this move will take the UAE’s economy to the next level. Numerous investment gates will be available for foreign business investors to come forward and invest without any worry. Over the years, the Emirati government has taken multiple steps to ease the business establishment process. When it comes to business opportunities and innovative business ideas in Dubai, the UAE serves as an excellent ground for numerous domains.

 

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Benefits of Setting Up a Business in the UAE

Once you proceed ahead by incorporating your business in the UAE, you will gain the following benefits:

1. Free Tax Exemption

Tax turns out to be one of the most significant burdens for any business person. To bring relief, the government of the Emirates has come up with a tax exemption policy for business owners and investors, which has turned out to be an attractive feature that grabs their attention. So, if you want to free yourself from the tax burden, Dubai turns out to be the right choice. 

2. Strategic Location

The UAE is divided in three jurisdictions which are the Mainland, Free Zone and Offshore are available that are dedicated to multiple businesses. You can choose the best location according to your business needs.

3. Upcoming Expo 2020

Starting a business in Dubai at this point turns out to be beneficial, as Dubai Expo 2020 is on the way. As mentioned earlier, the gathering turns up to be one of the biggest partnership platforms, and you can equally benefit your business by getting involved in the same.

4. Easy Office Space

Once you have thought about initiating your business ground in Dubai, you don’t need to get worried about the office space. Dubai has understood the need for customized office solutions to suit every business need and thus provides the same. You can choose the one accordingly that fits your business needs.

5. A Ground for Business Gathering

Dubai turns out to be a preferred choice by business owners for their business conferences, exhibitions and gatherings, which attract numerous people from different global zones.

6. Easy Business Licenses

While carrying out the business operations, you might come across a point wherein you need to present a business license. You will need to select the appropriate business license in Dubai by industry This license is issued by the Department of Economic Development (DED), which acts as a legal permit to carry out business operations. 

7. Robust Network

The region has a robust network when it comes to connectivity. All possible ways, like Airways, Waterways, and Roadways, are available, and that eases business operations to a great extent.

8. Mass Audience

The population of Dubai turns out to be a combination of worldwide nationals. By incorporating your business in Dubai, you will be able to target a large number of audiences from different citizens and grab their attention appropriately, which will turn out to be very beneficial for your business

9. Wide Options for Business Expansion

Once you set up your business in Dubai, you don’t need to worry about your business expansion. You will have an easy way out to grab the international market at ease, which you can start by grabbing the neighbouring markets like Oman, Bahrain, Saudi, etc.

10. A Platform for Global Hiring

It is a well-known fact that a business can’t run on its own. You need to hire the right person for the right job to make your company excel in the market. Dubai provides the complete flexibility of hiring talented professionals from every corner of the world and implies no restrictions on it.

11. Easy Visa Options

Once you have selected the right candidates, you need to provide them with an employment visa. Also, you need to make sure that you obtain the investor visa in UAE at the initial stage. The government of UAE has taken numerous steps to speed up the process and ease the company incorporation process for investors.

The new move turns out to be very beneficial for business owners, investors and entrepreneurs. Establishing a business in Dubai at this point turns out to be a golden opportunity, which you can’t afford to miss. Every entrepreneur must be aware of the challenges of business setup in UAE to navigate them successfully. The smart option for business owners to go ahead at the initial stage of the incorporation process is to get in touch with a business consultant. Subject matter experts can understand your business needs and have better clarity regarding the business proceedings. At Commitbiz, we are dedicated to providing the same to our esteemed clients. Our business experts hold industry experience and can curate tailored solutions for your business needs. If you have any queries or doubts, do contact us today- we’d be glad to assist.

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