The United Arab Emirates have become an exceptionally profitable business gateway for global business owners and investors. The region has been a home to millions of ex-pats from over 200 nationalities. The multi-cultural environment that blends numerous ideas has significantly contributed to lifting the GDP of the nation. The significant contribution by the foreign ex-pat towards the UAE’s tourism and hospitality segment has scaled up the GDP of the country.
The process of starting a business in the UAE has been made much easier so that the foreign nationals find it easy to incorporate. This guide will highlight the intense impact that the foreign ex-pats have contributed towards the tourism and hospitality segment in the UAE.
Tourism Business Industry in the UAE
One of the most profitable business segments, the tourism business serves to be a significant driver in excelling the UAEs growth. Dubai, the heart of the UAE, has been standing as one of the top tourist destinations, attracting the global audience. According to the calculated figures, the first-half of 2019 drew 8.36 million visitors, which is a massive count. Business owners and investor finds the sector to be a feasible option when it comes to investment options. To know more about the tourism industry in the UAE, click here.
How Can a Foreign Expat Start a Tourism Business in the UAE?
To proceed ahead with the tourism business incorporation in the UAE, a foreign ex-pat needs to go through the following process:
- Select the business entity type
- Choose a respective name
- Note down the relevant activities
- Decide a specific location (Mainland, Free Zone, Offshore)
- Complete the facilities related to trade name
- Proceed ahead with the proceedings related to the obtainment of tourism license
- Get approval from the respective authorities
- Submit the respective fee
Hospitality Business Industry in the UAE
Along with the growth of the tourism industry, there has been a parallel increase in the hospitality segment in the UAE. The sector has experienced massive growth in the past decade, where Dubai is one of the top targeted tourist destinations. The hospitality segment is expected to mark set another level in the next decade, as the nation prepares for Expo 2020, which is going to attract more than 25 million global visitors. The global investors having understood the complete scenario, are keen towards making huge investments, as the sector can fetch in higher returns on the investments made. Some of the future projections include the following:
- The CAGR of UAE between 2017-2022 is expected to be 8.5%
- By 2022, the hospitality market is to hit $7.6 Billion
- Hotel supply is to grow about 6%, supplying 183,718 rooms
- Ras-Al-Khaimah aims to attract about 3 Million visitors by 2025
Now, you must be wondering about the core reasons that provoke the business investors to come forward and invest. Well, some of them are:
- The massive increase in global and medical tourism
- A multi-cultural environment
- Strategic location
- High level of safety and security
- A Global Ground for various malls, events, festivals
- Government holding visionary leadership
The points mentioned above are among the core criteria that a business investor looks forward before investing in the stated sector. Now, to know more about it and understand it in a better way, click here. If you hold an interest in knowing more about the hospitality industry in the UAE, click here.
How Can a Foreign Expat Start a Hospitality Business in the UAE?
A foreign ex-pat needs to proceed ahead with the below guidelines when it comes to the business incorporation process of the hospitality business in the UAE.
- Collect and duly fill an application from the Department of Economic Development
- Submit the passport and visa copies of the respective applicants
- Submit a blueprint of the business
- Submit a No Objection Certificate in case of an international group or branded hotels
- Submit a tenancy contract approved by the landlord
- Classification card for the hotel business
- Approval from the Department of Tourism and Commerce Marketing (DTCM)
- Support from the Dubai General Police headquarters
- Other endorsements from the Dubai Municipality
Benefits of Starting a Business in the UAE
Once you have decided to incorporate your business in the UAE, you will be gaining the following benefits:
- Total repatriation of the capital invested and profits earned
- Complete exemption from personal tax payment
- The easy availability of a business license
- The flexibility of easy business incorporation process
- An international gateway to enter the foreign market
- Availability of different location options
To get a more in-depth view on the stated benefits, click here.
Key Takeaways
- UAE is one of the most promising business investment ground that provides high returns
- Tourism and Hospitality serves to be the best business segments to invest
- The upcoming Expo 2020 is expected to be a game-changer for business segments
- Obtaining a specific business license is a mandate
- Opting for professional serves would deliver better results
It is visible that the business incorporation proceedings in the region of Dubai involve multiple documentation processes. Dealing all alone with each of the methods turns out to be a tedious and complicated one. One of the best moves that the business owners make is to proceed ahead with the guidance of business experts, which helps them to clear the process in a relaxed and hassle-free way.
How Can Commitbiz Help?
Providing excellent business incorporation services is what we have mastered. Over the years, Commitbiz stands as one of the top ten business consultants that have been providing hassle-free business incorporation services to the respective clients. Our business experts take the initiative of understanding the business requirements and provide solutions suiting the business needs. To proceed towards the business incorporation proceedings, do have a word with our advisors. Contact us today-we’d be glad to assist.