Set up your business in the UAE
Open economy
The UAE encourages private sector growth and competition and enforces regulations that prohibit monopoly. It has strong ties with key regional and international trade associations. The UAE:
- is a member of the World Trade Organization (WTO) since 1996
- is a member of the Greater Arab Free-Trade Area (GAFTA) in which all GCC countries participate
- concluded Free Trade Agreements with Singapore and the EFTA
- is cooperating with the GCC countries to conclude the Free Trade Agreements with the EU, Japan, China, India, Pakistan, Turkey, Australia, South Korea and Southern Common Market (MERCOSUR).
Economic stability
The UAE is the 25th most competitive economy globally as per the Global Competitiveness Report 2019, leading the MENA region and works to enhance this status by diversifying its national income. Features of the UAE’s solid economy include:
- Strategic location
- Strong financial reserves
- Large sovereign wealth funds
- Healthy international relations
- Consistent government spending on infrastructure, digital transformation and innovation
- Progressive policy of economic diversification
- Multi-specialty free zones
- Increased foreign direct investments (FDIs).
The Economic Principles of UAE
Inspired by the Principles of the 50, which serve as a guideline for the UAE's new era of political, economic and social development, the Economic Principles of UAE represents a roadmap steering the development of the country’s economy.
The 10 Economic Principles aim to position the UAE as a globally integrated economy offering a fully-fledged digital infrastructure, secure systems, adaptable legislation, a forward-thinking mindset, and providing an attractive destination for innovative talent and investment.
The Economic Principles of UAE are:
- The UAE is a globally open free-market economy
The UAE serves as a model of a free economy, open to the entire world, welcoming international and regional economic and trade without constraints. It forges economic connections with the world, providing a global economic environment with clear and competitive advantages and incentives to drive investment and both inbound and outbound trade. It continually explores new economic opportunities to boost exports, diversify import sources and establish extensive trade and economic partnerships, thereby strengthening the UAE's position at the core of the global free-market economy.
- The UAE attracts top talent
The UAE provides an environment that both attracts the world’s top talent, entrepreneurs and innovators, and nurtures home-grown talent. It offers attractive incentives for skilled professionals and creative minds and provides a climate that supports turning great ideas into commercial opportunities and helping them develop and thrive. It offers world-class infrastructure, including healthcare, education, leisure and other facilities that combine to provide a place where people can live, learn, work and play in an environment of safety, security and stability.
- The UAE invests in the digital economy
The UAE serves as a global hub for the digital economy, offering an international platform for digital transactions and a compelling investment environment for pioneers in big data, technology development and innovation. This is achieved through the continuous development of both the UAE’s best-in-class digital infrastructure and business-friendly regulations. The UAE remains committed to investing in transformative technologies like Artificial Intelligence, which will play a critical role in shaping the future of the global landscape.
- The UAE invests in developing and creating opportunities for its youth
The UAE is committed to integrating young Emirati talent in the country's economic model, enabling them to discover and leverage opportunities across the economy by providing them with the skill sets and capabilities to ensure their competitiveness in international markets. Across the public and private sector alike, encouragement and investment are devoted to the creation of diverse and viable employment and professional development opportunities for young talent.
- The UAE manages a sustainable and balanced economy
The UAE is focused on ensuring the sustainability of the country’s economy through advanced legislations, policies that safeguard resource sustainability, environmentally friendly energy sources, and government plans and strategies aimed at preserving our natural resources for future generations. It invests in global sustainability initiatives and promotes sustainable practices, business and public infrastructure at home.
- The UAE offers a strong and stable financial system
The UAE maintains the strength and stability of its financial systems and practices, ensuring sound and resilient public finance together with a well-regulated financial sector that meets the highest international standards of transparency, efficiency and security. Embracing innovative financial instruments and models together with future-focused regulation and a strong role in the international financial system, the UAE provides an attractive environment for global banks and financial institutions to develop and prosper.
- The UAE offers a strong and fair legislative environment
The UAE continuously develops its legislative system and processes to guarantee a robust investment environment supported by flexible laws and business-friendly policies. Its legislation serves to bolster the UAE’s status as a secure, competitive and attractive destination for businesses and provide a framework for them to develop and grow globally. The UAE is investing in a legislative framework that is agile and adaptable to embrace current and future developments. It also continues to foster a strong, safe and fair business environment.
- The UAE upholds the principles of transparency and the rule of law
The UAE is dedicated to upholding transparency, compliance and the rule of law, creating an environment where trade can flourish against a background of credibility, probity and responsible economic management. The UAE actively strives to facilitate access to information from reliable sources and provide accurate public data supporting business decision-making and intelligence, fostering investor confidence and supporting sound opportunities for investment and economic growth.
- The UAE’s business community is supported by a strong banking sector
The UAE is committed to the development and operation of a robust and advanced banking system, in line with the best global standards, committed to safeguarding personal savings and supporting secure financial transactions for clients, both at the individual and business level. It collaborates with international organisations to implement best practices in compliance, banking data protection and financial security. Already home to world-class financial centres, thriving stock markets and global financial institutions, the UAE will continue to invest in expanding and supporting a financial sector that in turns supports business growth and investment.
- The UAE offers the world’s finest transport and logistics infrastructure
The UAE continues to develop the world's most advanced transport and logistics infrastructure, including world-leading ports, airports, and airlines and shipping companies. This effort solidifies its position as a major global hub for the movement of goods and people, a centre of trade that links East and West, North and South and, together with one of the most advanced global communications infrastructures, truly connects the world.
Ease of doing business
The UAE presents a favourable business environment. Excellent infrastructural facilities coupled with professional expertise and personalised services give the UAE an edge over other countries. The UAE was ranked 16th globally, as per the World Bank’s Ease of Doing Business Report 2020. Its rank in the various indices is as follows:
- 1st globally in ‘getting electricity’
- 3th globally in ‘dealing with construction permits’
- 9th globally in ‘enforcing contracts’.
- 10th globally in ‘registering property’
Variety of business premises
The UAE extends the flexibility to do business anywhere in the country. Choices of locations include free zones, industrial areas and commercial buildings.
- There are more than 40 free zones that allow 100 per cent foreign ownership of business
- Mainland business regulations too allow 100 per cent foreign ownership in 122 economic activities across 13 sectors
- The UAE provides state-of-the-art industrial and commercial areas
- It hosts high-profile conferences, international exhibitions and trade and investment events.
Skilful talent and labour
The UAE’s talent and labour force is one of the most skilful in the world. Its multi-cultural population enhances workforce productivity and creativity.
- The country’s official language is Arabic, with English and other major languages also being widely used
- The UAE launched a new visa system, attracting qualified workforce in the health, scientific, technological and cultural sectors.
- The UAE is seeking to be the first incubator of highly skilled professionals and talented human capital in dynamic, economic sectors.
Investment incentives
Attractive investment incentives include:
- Up to 100 per cent foreign ownership in free zones
- 100 per cent foreign ownership in 122 economic activities across 13 sectors
- 100 per cent profit repatriation
- An effective visa system allowing for renewable 10-year residence visa
- Competitive financing costs, high levels of liquidity and strong banking system
- No foreign exchange controls
- Strong appreciation and fully convertible currency
- Low inflation
- Low customs tariffs (between 0 and 5 per cent for almost all goods).
Political stability
The UAE has a long-term political stability, with open diplomatic policy worldwide. The UAE has more than 100 dynamic diplomatic missions abroad and about 200 foreign diplomatic missions in the country. The UAE is:
- a member of Gulf Cooperation Council (GCC), Arab League and the UN and its agencies
- the 3rd most peaceful country in the region according to the Global Peace Index 2021, compiled by Institute for Economics and Peace, a New York think tank.
Updated On :
29 Oct 2024
Social stability
The UAE is a safe place to live and invest in. Tolerance and respect to diverse cultures is innate to the UAE. The UAE is ranked 1st at the Arab region in the general index of the World Happiness Report 2020. The UAE: