Where a business is set up is a determinant of whether or not it will be profitable. That is why we will be taking the United Arab Emirates (UAE) as a case study to find out why it has become one of the preferred destinations for global businesses.
The UAE is the country, not Dubai. It is a sovereign state that comprises of Dubai and six other Emirates – Ajman, Abu Dhabi, Fujairah, Umm Al Quwain, Ras Al Khaimah, and Sharjah. Abu Dhabi is the capital of the United Arab Emirates.
The reason why Dubai is often mistaken as a country is that it is the commercial capital and doubles as a top tourist location in the world. Its strategic location makes it easy for billions of people from all over the world to do business. However, all seven Emirates has vast business setup opportunities for small, medium-sized, as well as major global conglomerates.
Let’s check out why the UAE has become a booming hub for business owners in search of more market reach.
Setting up a business in the UAE is as easy as can ever be. The government has been instrumental in making the system digital and flawless. There are also several developing hubs for the service industries across the country. Setting up a business requires just a few registration and documentation.
The UAE is the most liberal trade region of the Gulf Corporation Council. Its free trade zones attract a lot of foreign investors in the service industries such as tourism, finance, food, oil & gas, trade, and real estate. These areas are popular for granting 100% ownership, tax exemption, no exchange control restrictions, and no trade barriers to business owners.
Foreign direct investments in the UAE have skyrocketed over the years with promises in return for investments. The UAE is backed by the world’s seventh-largest oil deposits in Abu Dhabi, and a generally diversified economy in trade tourism, logistics, real estate, banking, and manufacturing. The government has and is still improving the business environment for investors and business owners. It has caused the cost of living to be lower than in most developed countries.
The government invests in digitizing all administrative activities in the country. It has increased spending on research and is opening more utilities to the private sector.
The UAE attracts tourists in their numbers from all over the world. Al Arab, Burj Khalifa, Burj al Arab, and many more exquisite hotels and resorts are all fun-filled places to visit. Entrepreneurs operating in the tourism and hospitality sector find it lucrative.
Despite the impact of the COVID-19 pandemic, the UAE still has a stable economy protected against volatile oil prices. Tours, events, weddings, exhibitions, and concerts have kicked off under a new set of guidelines that enforce social distancing. Both Etihad and Emirates Airlines are flying again, and hotel rooms are fully booked.
For more information about business setup in the UAE, contact Crenov8 Consulting. We are a Dubai-based management consulting and digital firm that helps businesses set up in the UAE. Some of our services include branding, business setup, event management, management consultancy, procurement, corporate training, and digital services.
Written by Joy Ejere Uche