Over the past year, setting up and starting a business in the United Arab Emirates (UAE) has never been easier than it is today. The World Bank report has confirmed what many foreign-owned businesses in the country already knew that over the past year, establishing a business in Dubai has become relatively easy and hassle-free.
So how does one open a business in the UAE?
There are six steps that have been complied by The Doing Business report. They deduced that it requires duration of eight days to start with 6.0 per cent costs of the income per capita and a paid-in minimum capital of 0.0 per cent of income per capita. The sum of the population’s (country, region or city) procured income that is divided by what the amount people in that population is how you can calculate income per capita.
UAE has the world’s greatest international banks embodied throughout the country which enable them to have a strong financial sector as an asset that can support the growth of the nation. HSBC, Citibank and Barclays are just some of the banks that are well-known around the world for their wide range of services and high level of expertise in terms of international finance. Import and export services like documentary credits and export loans are some of the services that many trading companies rely heavily on to survive in the economy. Without the knowledge and expertise leading financial institutions, these import and export services would be nothing but a faded memory.
UAE is the Easiest Country to start a Business
‘Off-shore’ and ‘On-shore’ activity
There are many misconceptions on how the UAE economy is divided into two groups, the ‘off-shore’ or free zone activity and ‘on-shore’ activity. This distinction is usually derived from the different forms of ownership rights each activity has. However, foreigners can take part in both off-shore and on-shore activities, the only thing they need to keep in mind is that they can only own 49 per cent of an on-shore business (the other 51 per cent is owned by a UAE national) whereas foreigners can own 100 per cent of any off-shore business.
UAE’s central location in terms of emerging markets is not the only factor that attracts investors towards starting a business in an off-shore or free zone business model. UAE has also managed to bring in thousands of businesses from around the globe due to their relaxed taxation and regulatory environment systems. These businesses have been able to benefit in order to successfully operating in the country. The World Bank report shed some light on another factor which is the ease of trading across borders. UAE currently ranks fifth worldwide out of 185 economies.