The UAE is a country in the Middle East that has a thriving business environment カヴァン・ チョクシ. It is home to many multinational companies and offers a wide range of opportunities for businesses of all sizes.
Small and Medium Enterprises (SMEs) are an essential pillar in any country’s economy. They have a major role in generating employment, promoting economic development, rising incomes, and building national competitiveness. Thus, the SMEs in the UAE play a pivotal role in helping the country achieve its vision to become one of the best places to do business in the world.
The economy of this federation is based on oil and gas, which makes it one of the wealthiest countries in the world. The country’s capital Abu Dhabi accounts for nearly 77 percent of GDP, while Dubai contributes about 13 percent.
The UAE has 9,545,000 people and is composed of seven emirates. The country’s diversified economy depends mainly on oil exports and related industries, followed by tourism, re-export trade, international financial services, trade, transportation, communication, real estate, and construction.
The UAE Business Environment
The UAE has a growing economy and population that position it as a lucrative market for businesses worldwide. According to the latest World Bank report (WB), it is considered the best place to do business in the Middle East and second out of all Arab countries after Bahrain, according to the latest World Bank report.
One of its strengths is having one currency, which facilitates business with other countries. Also, the UAE has a low corporate tax rate, which makes it an ideal location to expand or establish your business.
Incentives for Foreign Investments
The United Arab Emirates Economic Vision 2021 has set a goal of making the country one of the best places in the world to do business by 2021. To achieve this goal, they have made a number of reforms over the years to improve the business environment and facilitate foreign investments.
Many of those reforms have been related to tax policy, customs duties, administrative procedures, infrastructure, land sector, and business licenses.
The UAE has attracted more than $75 billion worth of foreign direct investment since its establishment in 1971. According to a report from the United Nations Conference on Trade and Development (UNCTAD), foreign direct investment in the UAE increased from $4.9 billion in 2000 to $22.2 billion in 2016, a five-fold increase in less than two decades.
While there are no minimum capital requirements for establishing businesses, opening business bank accounts, or obtaining trade licenses, there are some incentives that the government has introduced to attract foreign investments and enhance economic growth.
The Legal Framework for Businesses in the UAE
The UAE has established a legal framework to facilitate business development. The Federal Law No. 8 of 1980 is considered the most important Federal Law for businesses, which deals with labor relations and employment contracts. It applies to all employers and employees working in the private and public sectors.
Another relevant law that affects businesses in the UAE is Federal Law No. 12 of 1980, which deals with commercial transactions. It applies to all kinds of commercial activities conducted in the country, whether locally or internationally.