Starting a business across political boundaries does have its hurdles. But there are certain facts about the UAE that has always attracted entrepreneurs to venture into business in the Emirates. The country is one that has followed the principles of incessant innovation and development in the past four decades. There are so many favorable factors that would encourage the steady growth of a business in a country like UAE. Here are a few reasons why the UAE is number one on the list of entrepreneurs who want to start a business.
The external environment in which a business is established, which includes the society, the legal framework, and the economy of the country plays a vital role in the growth of the business. The UAE provides the best possible environment an entrepreneur could hope to have for his business. The legal framework supports entrepreneurs to take up new ventures and explore the field for possibilities of development. The society is made up of people from countries from around the globe. The economy of the UAE has proved to be stable and is the economy that has seen the highest growth rate in the GCC in the past few years. The existence of free zones allows business men who want to retain full ownership of their enterprise in the UAE to start their business. At the free zones, anyone could purchase land and start a business in UAE. And the businesses that are started in the free zones receive duty-free services in UAE and do not need to tie up with a local of UAE.
Infrastructure: It would be an understatement to say that the UAE has ‘Infrastructure that meets International standards’. The country boasts of one of the finest infrastructures in the world. Infrastructure is vital for the smooth functioning of any business and enterprises can take advantage of the advanced infrastructure on offer to promote their organization. The UAE has bustling seaports and airports which make the transport of goods relatively easy and logistic companies thrive on the turf that the cities of Dubai, Abu Dhabi and Sharjah offer. The seaports and airports too have free zones which encourage foreign investors. Starting a business in UAE would be ideal because of the top notch infrastructure.
Thriving Economy: Even though a considerable amount of revenue comes from oil and gas, the country is slowly ceasing to be solely dependent on it oil and gas reserves. The fields of trade, logistics, communication and tourism have seen dramatic advancement in recent years. Revenue from trade and communication has increased by 2.7% and revenue from hotels and restaurants have increased by 13.9% in the year and has continued this growth rate till the current year. By the year 2021 oil would amount to only 5% of the country’s GDP.
Tax-Free: The other factor that comes as a bonus to all business entities is that they do not need to pay corporate tax or income tax to the government. No taxes mean more profit for the organization. Unlike other countries where the organization has to set aside a stipulated amount for taxes, and this in most cases would lead to increase in the cost of the product, which may, in turn, lead to the organization losing its customers. But in the UAE all these worries can be laid to rest because.
Support from the Government: The government has started to support foreign investment and the cities of Abu Dhabi and Dubai have opened their property market to foreigners. Foreigners can now own property and stock in these cities. Dubai’s department of Economic development assists foreign investors with economic plans, strategies, and policies. The legal framework of the country is designed to support foreign investment and trade. The leaders of the country are on a mission to make UAE a country that is not only dependent on its oil reserves. In this regard, the commendable efforts of the leaders have paid off and their vision to make their country a tourist and medical tourist destination is taking shape.
Work Force: Expats make up a large population of the UAE. The country allows businesses to recruit professionals and experts from around the world giving rise to a highly competent workforce.
Consuming Capacity: The consuming power of the tourists and the residents of the UAE are also a factor that makes Dubai a very attractive destination for the commencement of a business in UAE. The nation and its residents have a great consuming capacity considering the fact that about one thousand two hundred millionaires live in and around Dubai. The country is a tourist destination all through the year. The climate and the geography of the country are so suited that it allows tourism flourish round the year. With the influx of tourists, businesses also flourish.
Incessant Innovation and Development: The UAE is a country where innovation is the order of the day. In the past few decades, every sector in the UAE has had an extravagant facelift. The country continues to develop and stay on par with the rest of the world in implementing the finest technology as it moves towards excellence in every field. This is evident in the recently constructed 3D printed building and its plan to build an artificial mountain. Entrepreneurs and businesses that have believed in innovation have thrived in the nation.
The growth that the country has seen in the past few decades are remarkable but what puts UAE on the map is its hunger for growth and development in every field and its crystal clear vision for the future.