Why do European entrepreneurs look for avenues in Dubai?
Why do European entrepreneurs look for avenues in Dubai?
Without a question, the outbreak of the pandemic early last year wreaked havoc on businesses all across the world. While certain economies were impacted worse than others by the health crisis, the UAE government’s quick steps allowed the country to reopen for business within months.
The following are the top reasons why numerous global corporations are seeking new opportunities in the UAE:
1. 100% ownership
The recent adoption of changes to the Commercial Companies Law, which removes the requirement to choose an Emirati partner and entrust them with 51 percent of a company’s shares, is a breath of fresh air for businesses. Expat business owners now have complete legal authority over the finances and operations of their firm. They can also apply to become residents of the UAE and sponsor their families and employees. What more does an investor require to succeed in the UAE?
2. Tax benefits
What motivates businesses to do business in tax-friendly countries? Take, for example, the European Union (EU). Their banking systems have noticeably shrunk in the last two years as a result of continuing or renewed limitations brought on by the increase in Covid cases. Although the degree of their economic recovery varies depending on the severity of the damage, the recovery is sluggish. The corporate tax, on the other hand, is a huge disadvantage for firms in the EU. The average corporation tax rate in the Eurozone, which consists of 19 member states, is 21.7 percent, with a low of 12.5 percent in Ireland and a high of 31.5 percent in Portugal, according to the Tax Foundation. However, there is no corporation tax in the UAE. As a result, investors are attracted.
3. Freezones encourage business
For incentivizing and drawing wandering eyes from overseas, the financial infrastructure is nothing short of legendary.
Each of these designated zones is set up for different types of industries. You may take advantage of circumstances such as no trade barrier quotas, competitive energy, real estate, and financing prices, and labor recruiting help as part of the free zone package. As a foreign business, you also get 100 percent ownership and 100 percent tax and duty exemption.
4. Transportation
The United Arab Emirates is at an ideal geographical location for international trade.
Port Rashid (35 berths) and Jebel Ali Port are two of Dubai’s most spectacular ports (63 berths). These are humming with activity and are vast in scope, thus worries about import and export are non-existent.
Flydubai and Emirates Airlines are two of Dubai’s aviation carriers.
Flydubai is one of the fastest-growing airline startups, accounting for 19 percent of all landings and take-offs at Dubai International Airport. Meanwhile, Emirates is the world’s third-largest airline in terms of revenue and accounts for 40% of all traffic.
Due to the expansion of both of these airlines, Flydubai will relocate to Dubai’s second airport, Al Maktoum International at Dubai World Central, at the end of 2017. This will allow Emirates to extend its operations at Dubai International Airport.
As an internationally recognized commercial hub at the crossroads of international commerce, the UAE takes advantage of its easy connectivity to the rest of the Middle East, Asia, Europe, and Africa, from air to sea.
5. Opportunities for multiple sectors
The UAE has traditionally relied heavily on oil and gas exports, which accounted for 85 percent of the economy in 2009. However, much has been done to reorganize the country’s industry to secure its long-term viability. This is especially true in Dubai, which lacks the same oil deposits as Abu Dhabi.
There has been an aggressive concentrate of resources on developing a different sort of economy, led by Dubai’s ruler, Sheikh Mohammed bin Rashid al-Maktoum, strengthening tourism, real estate, communications, manufacturing, retail, commerce, and construction. In addition to the thriving insurance business, the UAE has over 50 banks, with roughly 28% of them being international.
Let’s be clear: the UAE attracts a large number of visitors. The tourist industry is expanding, and the pace of pure human traffic is increasing, opening doors for a variety of consumer-facing enterprises. Tourist numbers in Dubai alone surpassed 14 million in 2015, and the city is on track to surpass 20 million tourists by 2020. A steady influx of people into the region implies a population that is constantly renewing, allowing for the flourishing of clever businesses.
This is a crowded location that is only growing busier.
How Radiant Biz helps you
In matters like business setup, people tend to get confused and get in chaos due to several rules and requirements. This is the time when people tend to look for an expert. A lot of chaos can be avoided if guidance is taken from the very beginning. Every venture may have unique requirements like location, customer convenience, logistical feasibility, and banking services.
We at Radiant Biz strive to understand these unique precepts and provide expert and reliable consultation to our clients with updated laws and governing regulations, awareness of their rights, and cost-effective business solutions tailor-made to their business needs and budget.
