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Global business climates have significantly transformed since 2020, and amidst this whirlpool of changes, the United Arab Emirates (UAE) has emerged as a steadfast haven for businesses. Dubai, in particular, has showcased unwavering determination cementing its position as a hotbed for Foreign Direct Investment (FDI). In fact, Dubai’s FDI Monitor reports a staggering AED15.9 billion (around US$4.3 billion) FDI entrance from 378 different ventures during the first nine months of 2021.
The rise in businesses relocating to the UAE, notably to the city of Dubai is an upward trend anticipated to gain more momentum in 2022. Behind this inclination lie several factors such as evolving technology, communication channels, escalating geopolitic, societal, and environmental dilemmas, and armed conflicts. Consequently, this relocation trend is facilitating the creation of a more reliable, business-focused ecosystem where previous market barriers are dissipating.
Let’s dissect the allure of Dubai and why it’s considered a go-to destination for business relocations.
Straightforward Business Transition
Recent reforms in the UAE have amplified the prospects of long-term residency for foreign investors, making relocation more appealing and easy. Since a substantial proportion of the UAE’s population constitutes expatriates, relocation is a routine process here.
Any global professional with entrepreneurial experience qualifies for a business visa application. Gaining approval from a UAE government-backed incubator is a prerequisite for a business visa application. The next step involves submitting a visa request to the Federal Authority for Identity, Citizenship, Customs & Ports Security.
For individuals residing outside the UAE, a six-month visa permits them to enter the UAE, explore opportunities, and establish themselves. Before the visa’s expiry, it must be converted to a residency permit.
For those already residing within UAE borders, a temporary one-month visa is issued, which must be converted into a residency permit before it expires.
Regardless of one’s situation, it is advised to seek assistance from renowned and trustworthy relocation companies in Dubai to ensure a smooth visa to residency conversion process.
Catering to Startups and SMEs
In November 2021, the UAE government unveiled the Entrepreneurial Nation initiative aimed at making the UAE a home base for 20 startups valued over $1 billion by 2031. The initiative will see the government providing backing through multiple public-private collaborations.
Simultaneously, the UAE introduced the National Program for Coders, intending to spawn over 1,000 tech firms in the country in a five-year span. The program will additionally issue 100,000 golden visas to tech professionals, entrepreneurs, startup owners, and business proprietors.
Tax Advantages in Freezones
UAE’s free economic zones provide foreign investors with an array of tax benefits and customs concessions, such as no imposed taxes on personal income and business gains, 100% foreign ownership of firms, 100% capital and profit repatriation, and minimal customs duties. It’s crucial, however, to remember that the UAE does impose income taxes on companies involved in the extraction of oil, gas, and other natural resources, in addition to a recently introduced 5% VAT.
Setting the Pace in Innovation & Infrastructure
Dubai thrives on innovation, offering cutting-edge infrastructure facilities for businesses. According to the Global Innovation Index, the UAE is ranked amongst the top three innovation economies in Northern Africa and Western Asia and holds the 36th spot globally.
Many startups are already leveraging Dubai’s world-class physical, social, and business infrastructure, embodying its unique value proposition as the City of the Future. Perhaps it’s time for your business to consider a relocation, too?
It’s essential to mention that this article is solely for informational purposes. If you’re contemplating relocating to the UAE, it’s advised to seek expert advice, personalized solutions, and on-ground support to ensure a seamless transition.
