The UAE was formed on 2 December 1971 and since the discovery of oil more than 40 years ago, the nation has transformed into a modern state with a high standard of living and cities that are key economic players.
The United Arab Emirates is comprised of seven independent states in the Arabian Peninsula: Abu Dhabi (Capital), Dubai, Sharjah, Ajman, Umm al-Quwain, Ras al-Khaimah, and Fujairah. Its geographical location and amicable time zone (GMT +4), give businesses wishing to access markets in Africa, Asia, and Europe a regional and business-centric hub from which to operate. These states have distinct characteristics, and their developing economies provide several business prospects in a variety of industries, including banking, trade, commerce, service, manufacturing, and construction.
According to the World Bank's report UAE is the strongest performer overall in the Middle East and North Africa region, with an ease of doing business score.
Over the last few decades, the UAE has established itself as a global investment and tourism hub, and starting a business in UAE is every businessman's dream. The UAE benefits from a great trading position in addition to its well-known low tax environment. The UAE government has guaranteed that foreign investors have access to the best amenities and infrastructure as part of its investor-friendly policies.
In addition, the UAE offers comparatively low expenses in other vital areas for business, such as customs duty, labour, electricity, and telecommunication. The country's liberal real estate investment policies, in particular, have attracted the interest of a large number of investors. Furthermore, money repatriation and a pro-business environment make it an attractive investment opportunity.
The UAE has signed a large number of international commercial treaties and has implemented and enforced strict exporting rules as well as laws to prohibit the illegal movement of commodities. Along with its phenomenal growth, the UAE is known for enticing business possibilities in every area due to its ease of doing business and favorable licensing rules. It is fertile and promising land for a business startup's extraordinary and rapid growth.
To do business in the UAE, a foreign investor must first establish an official legal presence in the country, which can be accomplished in one of the following ways:
For decades, the UAE government has taken a proactive approach to attract foreign investment from all around the world. The UAE's economic development is largely due to a visionary administration, business-friendly regulations, and the entrepreneurial zeal of UAE people. The UAE market is divided into three types of business jurisdictions: Mainland, Free Zones, and Offshore. Today, there are nearly 40 free zones across the UAE. Some of the most well-known include UAQ Free Trade Zone ,Ajman Free Zone, Dubai Multi Commodities Centre Free Zone (DMCC), Dubai Media City, TECOM, Jebel Ali Free Zone (JAFZA), DIFC, and Ras Al Khaimah Economic Zone (RAKEZ).
In the late 1980s, the first UAE free zone opened, laying the groundwork for the dozens that followed. There are around 40 free zones in the UAE nowadays. These free zones cater to specialized businesses such as commerce, industry, media, metals and commodities, finance, healthcare, and ICT (ICT). Many Free Zones have been established in the UAE to assist freelancers, consultants, and small enterprises in obtaining a license and operating in UAE.
The UAE Free Zones have been one of the country's strongest economic foundations, attracting a large number of foreign investments, creating thousands of employees, and allowing the necessary transfer of technology into the country. In the creation of a free zone company, there is far less red tape. Creating a firm in a free zone is easier and faster than starting a business on the mainland.