Why Chinese companies should open up in the UAE

Foreign business people the world over are attracted to the UAE as a destination. Chinese nationals are no exception.

Setting up and running your company is easier in the UAE and locating here unlocks new international markets that are harder to reach. Opening a business in the UAE is a sound strategic decision that ticks boxes – affordable costs, international market reach and huge profit potential.

So let’s take an in-depth look at why Chinese companies should open a business in the UAE.

1. You get expansive market reach from the UAE

China is within easy reach of most of Asia – but the UAE solves the problem for connecting to the rest of the world.

Many Chinese business people establish their company in the UAE because of the global market reach that it affords.

For domestic and Asian-market businesses, locating your company in China makes sense. China is within easy reach of most of Asia, so you can easily access your customers.

However, if you have bigger growth aspirations, or you currently deal with markets outside of Asia, it often makes more sense to choose an international hub like the UAE.

The UAE is within a four-hour flight of one third of the world’s population, and within a seven-hour flight of two thirds. That makes it the ideal location to reach customers in both the East and West, whether with products or in-person.

Plus, the UAE has some of the strongest infrastructure in the world when it comes to roads, seaports and airports, allowing easy import and export.

If you’re looking to expand your operations outside China and access lucrative international markets, the UAE is a logical location. Travel and trade become easier and less costly, so the company can operate smoothly and expand profits.

2. Setting up a company in the UAE is easy

The UAE offers more than 40 free zones designed to make foreign entrepreneurs’ lives easier.

Setting up a company in your domestic market is generally much easier than setting up as a foreign national. The world of foreign company ownership can often be tricky to navigate – and it can often be difficult or impossible to repatriate profit.

Not so with the UAE.

The UAE offers over 40 free zones – designed to make life easier for foreign business people. Setting up your company in a free zone means you can own your company 100%, without the hassle and risk of finding local partners.

It also means you can repatriate 100% of your profits, so you can set up a company here but you and your family in China can reap the rewards. In addition, there are extensive tax breaks available for businesses operating from UAE free zones – so more of the money you make will stay in your pocket.

It means your money counts for more, and your hard work translates into better profits.

The UAE believes in the principles of internationalism and is committed to attracting international investment, entrepreneurship and creativity into the country. That ethos makes the UAE an inviting, friendly and supportive environment for foreign investors.

3. Doing business in the UAE is easy

The daily business of running a company is easier in the UAE than most other countries, so you can spend more time on revenue-generating activity.

Establishing your company in the UAE is easy – but what comes next?

The UAE covers all the bases, which is why it’s ranked first in the MENA region of the World Bank’s Global Ease of Doing Business report. That’s 11th globally.

The report considers numerous factors including dealing with construction permits, setting up utilities, registering property, getting credit, and protecting minority investors.

In other words, all the red tape associated with setting up and running a company. Of these individual factors, the UAE ranks especially well for getting construction permits (5th globally), getting electricity (1st globally), and registering property (7th globally). Individually they’re not huge things but they all add up to an environment that helps, or hinders, business.

Establishing your company in the UAE means you’ll spend less time navigating red tape and chasing contractors. So you can spend more time doing business-critical activities that drive profit.

4. You’ll pay less for warehouse space in the UAE

The UAE’s warehouse and logistics sector is fast-growing and offers affordable, customisable warehouse space for global businesses.

If you trade in physical goods, you need warehouse space to safely store those goods. Warehouse space can be an extremely expensive commodity across much of the world, representing a big chunk of your bottom line.

In the UAE, however, you’ll find plenty of affordable warehouse options that can be customised to your needs. Often you’ll find warehousing with flexible lease options, or attractive offers if you sign for a 12-month lease.

The UAE’s warehouse and logistics sector is currently growing rapidly to meet significant demand from international companies moving into the UAE.

For international investors considering setting up a company in the UAE, that means you have the warehousing and logistics infrastructure to support your growth. And it’s all for a more affordable price than you’ll pay in much of the rest of the world, which keeps your costs down and accelerates your profit potential.

The UAE offers a compelling proposition for Chinese business people. It’s a highly attractive environment with affordable costs, minimal bureaucracy and huge international reach that powers profitability.

For Chinese entrepreneurs and business owners, there are few better places to open doors than the UAE.

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