The United Arab Emirates is a small country located on the Persian Gulf with a population of 9.4 million (approx.).
It has the world’s seventeenth largest natural gas reserves and seventh largest oil reserves in the world, and this was its initial claim to fame. However, this land of contrasting landscapes has become an important regional and international business player in the recent times, thanks to its strategic location, oil wealth, visionary leadership, tax laws, stable government, and business-friendly government policies
5 Factors That Make UAE an Ideal Trading Hub
Over the last decade, the United Arab Emirates has experienced significant expansion and economic diversification, owing to its business-friendly environment. UAE is undoubtedly the world’s most successful, vibrant and rapidly growing economies in the present times; and a regional strategic trading hub for diverse businesses, not restricted to oil and natural gas.
Let's look at a few factors that contributed to making UAE a popular commercial center:
- Strategic Location
One of the most important factors that make UAE a popular trading destination is its strategic location. The country is exceptionally well-connected to emerging markets and is located at a transit point for world crude oil, making it a well-placed trading hub in reach of major global business centers.
- Liberating tax laws
UAE finds its place in the top 10 tax havens of the world, a territory that marks zero or nominal taxes (personal, corporate or professional). The UAE government doesn’t levy any undue taxes on the foreign and national stakeholders investing in the Emirates, which makes setting up a business in UAE a cherished proposition.
- Efficient trade policy
In order to strengthen its position itself as an open economy which welcomes international trade, UAE follows exports diversification policy or multilateral trade policy, which allows people to engage in free trade across all types of businesses.
- Favorable government policies
No commercial activity can flourish in a state without a business-friendly government. UAE government promotes global investment, by offering various incentives to investors planning to incorporate their business in UAE.
- Economic diversification fueling growth
UAE has an abundant supply of oil and natural gas reserves – it has the world’s fifth largest natural gas reserves, and the world’s ten percent of the oil reserves. The government in UAE understands that the key to achieving sustainable growth lies in economic diversification. Therefore, though oil production is the biggest source of generating income, only 30 percent of the country’s GDP (total gross domestic product) comes from oil export. The economy in the UAE has been stable for a longer time and the government wants to keep the same track record for a longer period.
Changing With the Times – Getting Globalized in the True Sense
From a culture that relied on fishing and agriculture to become a nation with world-class infrastructure that created an entrepreneurial success story in just over three decades, UAE has indeed come a long way. The United Arab Emirates now symbolizes modernization – equal participation of women in government and business, no gender disparity, employment protection, advanced health care, improved education, and transparent legal system, while being consistent with its history and cultural values.
UAE has changed with the times for better; and has emerged as a vibrant, strong, and modern nation that welcomes world trade.
If you are planning to globalize your business, UAE promises an excellent opportunity for business growth. Commitbiz can help you realize your business formation dreams, contact us today!