Overview

Long recognized as the leading regional hub in the Middle East, the UAE has transformed into a truly international centre of global significance. International companies have found that the territories accessible form the UAE include many of the worlds most interesting emerging markets. The UAE is strategically located midway between the Far East and Europe.

Why the UAE

The UAE combines a competitive advantage of costs, market and business that create an ideal investment climate for local and international companies. These advantages ranked the UAE as the Arabian Gulf’s leading business centre and regional hub. This has all become possible due to the Emirates welcoming people, world class facilities, infrastructure, open and liberal economic policies.

Aside from economical advantages of using the UAE as a business base, cities like Abu Dhabi and Dubai offer a superb quality of life for the whole family. The UAE is tolerant, welcoming and virtually crime-free. The lifestyle is international, with good educational, health and shopping facilities.

Economy

The Emirates have changed dramatically over the last decades, becoming a major business hub with a diversified economy. The country enjoys a strategic location in the Middle East. Its low logistical and operational costs, excellent infrastructure and liberal government policies are attracting investors from all over the world. Activities such as trade, industry, transport, tourism and finance have shown steady growth and helped the economy to achieve a high level of expansion and income.

Business Environment

The UAE offers incoming business all the advantage of a highly developed economy. Its infrastructure and services match the highest international standards, quality and services. Benefits are:

• Free enterprise system
• Developed transport infrastructure
• Star-of the-art telecommunications
• High quality office and residential properties
• First class hotels, hospitals, shops and schools
• Excellent living conditions
• World class financial and services sector

Costs

Companies setting up in the UAE can secure cost advantages as:

• No corporate profit taxes
• No income taxes
  
• No foreign exchange controls
  
• No trade barriers
• Competitive costs on labor, energy, real estate
  
• Competitive financing costs and high levels of liquidity

Legal Structures

Common ways for foreign parties to conduct business in the UAE are through:

• Branches and Representative offices of foreign companies
  
• Limited liability Companies
  
• Free Zone vehicle (Dubai has 9 different Free Zones with special incentives)
  
• Joint Venture Companies
  
• Professional Firms
  
• Appointing an agent already licensed in the UAE

Licensing

The basic requirement for all business activities in the UAE is one of the following categories of licenses:

• Commercial licenses for trading activities
  
• Professional licenses covering professions, services, craftsmen and artist
• Industrial licenses for industrial and manufacturing activities.

Licenses are issued by the Economic Development Department or the FreeZone authorities. For some categories of business further approvals from ministries and other authorities will be required. All commercial and industrial business in the UAE should be registered with the Chamber of Commerce and Industry.