Which is the best place to do business in the UAE?

Current market trends in the UAE and its Emirates offer enormous opportunities for foreign investors to tap into import and export goods and capitalise on the city's growing tourist traffic for an almost limitless number of potential clients and customers.

The most important question for a foreigner looking to start a business in the UAE is where to begin. As you are all aware, the UAE consists of seven Emirates, namely Dubai, Abu Dhabi, Ras Al Khaimah, Sharjah, Fujairah, Ajman, and Umm Al Quwain are all part of the UAE. Every Emirate has benefits and drawbacks. You can choose your location based on your business activity and what each Emirate offers.

The UAE government has transparent and business-friendly policies. However, if you want to enter the UAE business world, you will need a local sponsor who will own 51% of your company. 

So, let's start determining which Emirate is best for your company. First, it is essential to note that the procedure for establishing a business is the same and secure in all Emirates. That is why we need to know which Emirate offers the best opportunities for your company.

Here are the best cities in the UAE to start a business 

Since the turn of the century, the UAE has become a hub for various Asian business activities. The diversity of demographics continues to entice many investors looking to establish a business in the UAE. However, establishing a company in the UAE necessitates diligence and familiarity with the country's rules and regulations. This blog aims to shed light on the best cities in the UAE for business setup. So, let's get right on the list.

1. Dubai

Due to its liberal cultural atmosphere, Dubai is the most popular destination for establishing a business. Its free zones, DAFZA, DMCC, and Media City, are among the most prominent providers of free zone services. Furthermore, the Emirate is well-known as a powerful global center for re-export and transit due to the port of Jebel Ali, which serves more than 140 destinations. The Emirate is also a gateway to lucrative markets in the Middle East, South Asia, and Africa, where total GDP is expected to exceed $12.8 billion by 2030.

The Benefits of Business Setup in Dubai –

• A thriving and expanding economy excel in logistics, trade, transportation, and tourism, accounting for nearly 60% of Dubai's GDP.

• A favourable investment climate and government support

• Dubai has over 20 Free Zones, which house various industrial and business clusters.

• Dubai is between Asia, Europe, and Africa, and its proximity to Asian behemoths China and India makes it an advantageous location.

• Dubai has some of the best infrastructure in the world, including roads, telecommunications, ports, and airports.

• Thousands of professionals worldwide migrate to Dubai because of the country's liberal labour laws.

2. Abu Dhabi

Abu Dhabi is the federal capital of the UAE and one of the world's fastest-growing and wealthiest markets. Therefore, Abu Dhabi is a viable option for investors looking to establish a company in the Middle East. Moreover, the Emirate's corporate norms and business setup process norms and business setup process in the Emirate are straightforward, and it only takes a few days to set up a business in Abu Dhabi.

The benefits of Business Setup in Abu Dhabi are –

• Strategic location between Europe, Asia, and Africa, as well as easy access to the rest of the world; 

• 100% foreign ownership; and exemption from corporate and personal income taxes

• There are no currency controls, quotas, or trade barriers.

• Abu Dhabi has world-class living standards, as well as world-class health services, housing developments, tourism, education, and transportation facilities.

3. Sharjah

Sharjah is catching up to Dubai as a cost-effective alternative for establishing a business due to its proximity to an international airport and coupled ports on the west and east coasts of the Arabian Gulf with direct access to North Africa and the Indian Ocean.

The benefits of Business Setup in Sharjah are –

• Sharjah serves as a tax haven (no corporate or income tax)

• It has a current legal framework.

• There are no currency controls, trade barriers, or quotas.

• Investing security

• Sharjah's government is offering various incentives to investors.

4. Ras Al Khaimah

RAK, located in the northern end of the Emirates, attracts many foreign investors because it has one of the most developed economies in the Emirates and has seen tremendous economic development. In addition, its physical presence in the Emirate fosters trust among citizens, aids in forming long-term consumer relationships, and facilitates the establishment of trade contacts in the UAE.

The benefits of Business Setup in RAK are –

• Simple and business-friendly legal frameworks and corporate laws that ensure investment security

• Government-sponsored investor incentives

• A business-friendly environment and a simple company formation process

• Agreement on Double Taxation with various countries, which turns out to be advantageous for business owners to transit business.

5. Fujairah

Fujairah has been rapidly developing over the last decade, attracting foreign investment into the national economy. Today, business owners and investors worldwide are interested in establishing a firm in Fujairah.

The benefits of are –

• Location is important. Business Setup in Fujairah

• A global business focal point

• Gateway to other vast commercial nations

• The sophisticated, efficient, and modern communication system

• Government policies allow for the full repatriation of capital and profits.

• The Emirate has advanced infrastructure and adequate communication facilities at a low cost.

• Fujairah encourages sponsorship and visas for a low-cost skilled workforce.

6. Ajman

Ajman is another Emirate in the UAE. Ajman, as the smallest of the emirates, offers low startup and maintenance costs for businesses that establish themselves there. In addition, the Emirate provides numerous benefits, which have resulted in high demand from overseas investors, SMEs, and aspiring entrepreneurs.

The benefits of Business Setup in Ajman are –

• 100% capital and profit repatriation

• There is no red tape.

• Companies are completely exempt from corporate tax.

• Laws that are beneficial to businesses

• Immigration policies that are simplified and quick for workers

7. Umm Al Quwain (UAQ)

UAQ is gradually emerging as one of the Emirates in which to establish a business in the UAE. UAQ is said to be an ideal location for both micro-businesses and SMEs. So, entrepreneurs should consider setting up new companies here because there is a lot of opportunity for new entrepreneurs to grow their businesses and progress.

The benefits of Business Setup in UAQ are –

• There are no restrictions on hiring foreign workers.

• The business registration process has been simplified and streamlined to make it easier.

• Particular concession via Umm Al Quwain free zone seaport

• World-class facilities and infrastructure, as well as complete connectivity and 24-hour security

• Warehouses, pre-built structures, and office space are available based on your specific requirements.

• The government provides complete assistance, particularly to SMEs and startups.

All the Emirates are best for setting up an ideal business, but at the end of the day, the decision lies in your hand. But if you need further help, we at Gryffin Capitalist can assist you. Contact us today for more information.