06 08 2020

Benefits of immigration for the purpose of business setup in Dubai

Benefits of immigration for the purpose of business setup in Dubai

The United Arab Emirates has achieved great success in the export of gas and oil, but their main merit is in the diversification of the economy and income from various economic spheres. After the government decided to move away from dependence on oil production, the development of the service and industrial sectors began. Today, the share of oil production in the total profit of the UAE is only 2%. One of the most successful innovations was the opening of Free Economic Zones.

The UAE government does not stop making efforts to improve the country's competitive advantage. The main goal is to become the number one destination for foreign investment, both regionally and internationally.

Economics and politics.

By diversifying its income, the UAE began to implement it back in the early 1980s, the government faced important tasks, which consisted in increasing investment from the private sector and in reducing dependence on hydrocarbons. Why was this done? To reduce dependence on sharp fluctuations in oil prices, as well as to boost economic growth and maintain relative stability in the country.

To achieve the set objectives, the repatriation of interest, dividends and royalties was allowed without any restrictions. This meant that there were no restrictions on operations with capital held in bank accounts. Unlike banks within the UAE, overseas banks are required to obtain permission from the Central Bank of the United Arab Emirates.

The UAE authorities are constantly implementing impressive new projects aimed at reducing the level of restrictions on foreign investment and trade. All this greatly stimulates the growth of investments from abroad and has a positive effect on the economy of the United Arab Emirates.

Safety.

The Arab Emirates already have political stability. Due to this fact, the social structure is strengthened. We are witnessing the formation of safe, tolerant and prosperous societies in the world. Global surveys were conducted on the quality of life of the population, and the top two cities in the Middle East region were Abu Dhabi and Dubai.

Taxes.

In free economic zones, foreign investors have the right to own 100% of the company's shares, to full tax exemption and repatriation of profits and capital. These zones provide some of the best business conditions in the world. If you look at the territory outside the FEZ, you can see the availability of a wide range of economic incentive programs. The FEZ has all the conditions and rules for transparency, security and accounting in corporate governance. Only branches of foreign banks and oil production companies are subject to corporate tax. For goods imported from outside the countries of the Cooperation Council of the Arab States of the Gulf, a tariff of 5% applies, but this does not apply to tobacco and alcoholic products, for them the tariff is 50%.

Location.

The UAE's convenient location offers incredible import and export opportunities. The Arab Emirates are located close to Europe, Asia and Africa. Only established cooperation with China has great potential with a GDP of more than 6 trillion.

Intellectual property.

The United Arab Emirates is a member of the world's intellectual property rights organizations. For example, the UAE is a member of the World Intellectual Property Organization (WIPO), is a member of the Paris Convention, and many others. Therefore, you do not need to worry about trademarks and patents, they are protected by law and the state.