UAE an ideal investment destination

With a stable and secure business environment and investor-friendly legislation, the UAE is an ideal destination for global investment. At the crossroads of major growth centres across the Middle East, Asia and Africa, the UAE offers opportunities to quickly scale up operations to serve regional and international markets.

Foreign investors can benefit from the UAE’s logistics expertise and role as a regional hub for the Middle East, as well as its strong network of economic agreements, including 101 agreements on the avoidance of double taxation and 67 bilateral investment treaties. Investing in the UAE ensures sustainable future growth for multinational corporations, Small and Medium Enterprises (SMEs) and private investors, alike.

In the World Competitiveness Yearbook 2021, the UAE ranked 9th globally, scoring high in the government and business efficiency, economic performance and infrastructure.

Moreover, in the Global Competitiveness Report 2020, the UAE ranked second worldwide in ICT adoption, flexible work arrangements, digital skills and digital legal framework.

Features of the UAE’s economy include its strategic location, strong financial reserves, large sovereign wealth funds, solid international relations, consistent government spending on infrastructure, digital transformation, and innovation, progressive policy of economic diversification, multi-specialty free zones and increased foreign direct investment.

To further the development of a sustainable, diversified, and competitive knowledge-based economy, the UAE is focused on facilitating investments in a number of priority sectors. Moreover, it offers its vibrant expatriate community the flexibility to do business anywhere in the country, including in its many free zones, industrial areas, and commercial buildings.

The UAE’s investment-friendly business regulations allow 100 per cent foreign ownership in 122 economic activities across 13 sectors and the country regularly hosts high-profile conferences, international exhibitions and trade and investment events.

The UAE also offers various incentives to the investors with the aim of increasing the number of SMEs and startups in the country, with the government simultaneously eliminating barriers that hinder the flow of investments.

The incentives include the following:

100 per cent company ownership

The investors of all nationalities can establish and fully own companies in the UAE. This change came about based on the provisions of the Federal Decree-Law No 26 of 2020 on commercial companies, under which a foreign company wishing to open a branch and practice its activities in the UAE does not require the presence of a UAE national agent.

40 free zones for company incorporation

More than 40 free zones allow tax exemptions and 100 per cent ownership for foreign investors. The UAE also offers investors flexibility in selecting the most appropriate zone in which to establish their business. The free zones are located across the UAE, enabling the investors to engage in a wide variety of economic activities.

No income tax and full profit transfer

The UAE does not impose income tax on individuals and investors with the exception of oil companies and branches of foreign banks. As a country with a free economic model since its inception, it allows individuals and investors to freely repatriate their profits in entirety.

Golden Visa for investors

The UAE adopted a new visa system by granting long-term residence visas for durations that range from 5 to 10 years. Available to the investors, entrepreneurs and the talented individuals, these visas allow expatriates and their family members the ability to live, work, or study in the UAE, while enjoying the benefits of extended residency.

Conclusion

In addition to a desirable investment climate, the UAE also boasts a stable and secure environment that more than 200 nationalities call their home. Over 1.5 million Pakistanis reside in the UAE, which ranked first in the Arab world in the World Happiness Report 2020.

As the second-safest country in the world (Global Finance Index 2021) and the second largest economy in the Gulf Cooperation Council (GCC) and the Arab world, the UAE remains the preferred destination in which to live and invest.