While the UAE offers many advantages, it’s important to conduct thorough market research and understand the legal and regulatory requirements specific to your business activity and Emirate of choice. This will help you capitalize on the benefits and navigate any challenges effectively.
Why do business in the UAE ?
Strategic Location: The UAE’s geographical location at the crossroads of Asia, Europe, and Africa makes it an ideal hub for international trade and business. Its well-connected airports and seaports facilitate efficient logistics and distribution.
Political Stability: The UAE is known for its political stability and strong governance. The government’s commitment to business-friendly policies has created an environment conducive to long-term investments and growth.
Tax Benefits: One of the most attractive features of the UAE is its tax regime. Most Emirates have no personal income taxes, making it a tax-efficient destination for businesses. Additionally, the introduction of Value Added Tax (VAT) in 2018 has been relatively low at 5%, and excise tax at 100% for tobacco products and 50% for sweetened drinks, further contributing to government revenue without significantly burdening businesses.
Free Zones: The UAE offers numerous free zones, which provide businesses with incentives such as full foreign ownership, exemption from import and export duties, and no restrictions on the repatriation of profits. These zones are sector-specific, catering to various industries from technology to manufacturing.
Infrastructure: The UAE boasts world-class infrastructure with modern facilities, efficient transportation networks, state-of-the-art communication systems, and a rapidly expanding energy sector. This robust infrastructure supports businesses in their operations and growth.
Skilled Workforce: The UAE has a diverse and skilled workforce due to its expatriate population. This provides businesses with access to a wide range of talents and skills. The government also encourages continuous education and training.
Open Economy: The UAE has an open and liberal economic policy. It encourages foreign investments and allows for the full repatriation of capital and profits. This openness fosters innovation and competition.
Ease of Doing Business: The UAE has made significant efforts to streamline its regulatory processes. The World Bank’s Ease of Doing Business Index has consistently ranked the UAE among the top countries for ease of doing business.
Cultural Diversity: The UAE’s multicultural society provides a unique environment for businesses to connect with various cultures and markets. This diversity can be leveraged to understand and tap into global markets effectively.
Quality of Life: The UAE offers a high quality of life with modern amenities, a safe environment, excellent healthcare, and world-class education options. This attracts skilled professionals and their families, benefiting businesses seeking a talented workforce.
Additionally, the VAT rates are one of the lowest across the globe in popular economies.
VAT Tax Rate %
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This article was published on 16 August 2023.
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