Why is UAE an Attractive for investors?

According to the Global Investment Report issued by the United Nations Conference on Trade and Development, the UAE is the second greatest recipient of foreign direct investment (FDI) in Western Asia.

Foreign investors are mainly drawn by the country’s economic stability, the low energy costs the tax-free environment for companies, the absence of limitations on repatriation of profits and the Government’s openness towards a diversified economy.

The main reasons investors find UAE attractive:

  • The political and economic stability offered by the country which has a positive influence.
  • Registering a company in UAE is very easy and fast which is one of the most important aspects quoted by foreign investors.
  • There are plenty of industries in which foreign investors already thrive in and which are used by other overseas entrepreneurs.
  • One of the wealthiest cities in the world and it offers a good quality of life and high living standards.
  • Dubai is one of the main trading hubs in the Middle Eastern region and in the Gulf Cooperation Council;
  • Has one of the most impressive infrastructures in the world, in terms of road and airways.

UAE taxation system – a good investment reason:

One of UAE strengths compared to other important cities in the world is taxation. Even if the last two years have brought significant changes, such as the introduction of the value added tax and excise tax, there are still plenty of reasons for choosing UAE for its taxation system. Among these, we enumerate the following:

  1. UAE does not impose any taxes on individuals and companies working, respectively operating.
  2. The repatriation of profits from Dubai to other countries is most of the time free of any tax.
  1. The UAE has signed many double tax agreements, Dubai residents and resident companies can take advantage of.
  2. UAE has many free zones (one of the largest numbers in the world) which provide for no corporate taxes.
  3. There are no employment taxes in Dubai, which in other countries are one of the most important tax burdens.

With a vast experience in company registration in UAE, local advisors can also explain how to benefit from the tax reductions and exemptions granted by the local government.


UAE has more than 30 free zones

Free zones are also one of the Emirates strongest attractions for foreign investors as there are no restrictions for opening companies in any of the city’s free zones.

Dubai has one of the largest numbers of free zones in the world. Located at the outskirts or even in the heart of the city, free zones are special economic areas which target foreign investors who want to have full ownership over their businesses.

UAE is already known as a regional and global centre for business and with the approaching Expo 2020 which will be hosted by the city, many opportunities for private investors are expected to be created. Foreign investors will have access to a wide range of sectors, among which construction, rental, retail, and transport, are expected to be some of the most successful. The logistics and tourism sectors are also expected to expand during the next few years.


You might also like