Doing Business Abroad: Is it profitable to open a company in UAE in 2024?

Do you want to open a company in the UAE, but the economic instability prevailing in the world makes you doubt your idea? Don't forget that the Emirates is a unique economic ecosystem that has shown resilience even in the face of global crises.

According to IMD World Competitiveness, Dubai occupies one of the top positions in the global ranking of business success. Therefore, we advise you to take a risk and we will help you turn your dream into a promising business.

Why is organizing a business in UAE promising and strategically astute?

Opening or relocating a business to Dubai in 2024 is a safe venture even given the current geopolitical realities. This is due to several reasons:

1. Despite global economic fluctuations, the UAE economy continues to grow. The government is actively investing in its diversification to reduce dependence on oil revenues. Tourism, IT-technology, finance, real estate, logistics, manufacturing and healthcare sectors are developing. This is creating new business opportunities and opening doors for entrepreneurs.
2. The state is striving to become a world leader in technology and innovation. Startups in areas such as fintech, eco-technology and artificial intelligence are actively developing here.
3. Business registration procedures are quite simple and transparent. Opening a legal entity in the UAE in a FEZ can take only a few days. In addition, many emirates offer flexible lease terms and access to quality office space. This allows entrepreneurs to focus on developing their business rather than on bureaucracy.
4. The UAE is the gateway to the Middle East and North Africa. Opening a business here gives you access to a huge market of consumers. The country also has many trade agreements with European nations, making it easy to export and import goods.
5. The country has a low crime rate, as well as high standards of health care and education. This makes it attractive not only for entrepreneurs, but also for their employees, which is important for building an effective team.
6. The UAE is a melting pot of cultures with people from different countries and continents. As a result, entrepreneurs can interact with a diverse customer base and build international relationships.
7. The UAE also has a mild tax climate, a stable banking sector, no currency controls, and all sorts of government programs to support businesses and start-ups, making it possible to effectively conduct business activities and raise capital.

Types of Companies in the UAE

The UAE is divided into mainland and free zones. This determines the differences in the set of rules and restrictions for companies opening in them.

Free Zones

• Companies are regulated by the authorities of the respective zones;
• Companies are allowed to do business locally and internationally;
• 100% foreign ownership of the company and remote management without a physical (real) office is possible;
• Most taxes are waived in FEZs;
• Business licenses are issued within a few days;
• Business owners can quickly obtain UAE residency visas and sponsor family members.

Mainland companies

• Can conduct business throughout the country and beyond;
• Can freely repatriate profits;
• Can engage in virtually any type of business and participate in government tenders;
• There is no need to engage a local business partner;
• There are no requirements as to the amount of authorized capital;
• You can obtain tax resident status;
• It is possible to become a resident visa holder.

Offshore

• Designed for operations outside the UAE;
• 100% foreign ownership of the company is possible;
• It is possible to obtain licenses for several types of activities at the same time (up to five);
• There are no taxes or currency controls;
• It is possible to do business in other countries;
• It is possible to register real estate with the company.

Starting a business in Dubai: promising industries

Today, the focus of attention of the UAE business in its majority is directed to Dubai and Abu Dhabi. The most profitable and promising in the current year are the following areas:

• IT technologies are one of the fastest-growing areas, with a significant influx of investment;
• Construction: The annual growth rate of this sector is 7%;
• Food production: This sector grew by more than 30% last year;
• Logistics: This sector is expected to grow at a compound annual growth rate of 6.71% between 2023 and 2029;
• Real Estate: Government programs are stimulating the real estate market, which is needed by millions of tourists and business people in the UAE;
• Agriculture: This sector is projected to grow at a compound annual growth rate of 4.3%;
• Tourism: Tourist traffic is expected to grow to 40 million people per year in 3 years;
• Beauty services: the high standard of living and income of the population is driving the rapid development of this sector.

How to start a business in the Emirates in 2024?

To start a business in Duba, you need to do the following:

• Choose the right type of company and jurisdiction for your business;
• Devise and approve the name of the company;
• Prepare and legalize a package of documents for registration;
• Find a suitable office for your company;
• Apply for registration;
• Obtain a license for your type of business;
• Apply for residency visas for you and your employees;
• Open a bank account.

You can always contact our company to ensure that all of the above steps are completed quickly and hassle-free. Book our free consultation and we will provide you with professional assistance at all stages of your business registration.

Starting a business in the UAE and the pitfalls of the process

Despite all the advantages, there are some difficulties in doing business in the UAE.

1. Changes in UAE legislation require a quick response and revision of your business plan. Timely consultation with specialists will allow you to keep abreast of the latest changes and stay ahead of the curve.
2. Misunderstandings with local partners due to language barriers or cultural peculiarities can lead to misinterpretation of contractual obligations. It is advisable to enlist the support of a professional team to avoid misunderstandings.
3. In some cases, obtaining licenses and permits can take a long time. Timely preparation of documents and perfect knowledge of all procedures will help to eliminate this factor.
4. In certain fields, such as consulting, tourism and trade, entering the market is very competitive and risky. Professional consultants will help you research your target audience and develop a UTP to make your business stand out from the competition and start earning money as soon as possible.

Help with Starting a Business in UAE by StableGrowz

Need help starting a business in the UAE? We can help you! Our company has been helping people relocate and do business in the Emirates for over 5 years, so we are happy to take on your business ideas!

Contacts

United Arab Emirates, Dubai, Barsha Heights, I-Rise Tower, 29th Floor, Office 5