Economic fluctuations in hindsight can be considered as a global gamble because ultimately it forms a country’s basis for future development. These fluctuations are based on the country’ overall investments, trade operations, government collaborations and standard of living of the citizens. Many countries make investment or trade decisions beyond the tandem of their liability, which means that they spend more from their nation's treasury than the amount they can earn which does largescale financial damage halting the nation’s development.
In terms of making the right economic decisions, it seems that the UAE has been joyriding a bandwagon of financial success. UAE was one of the few economies that dared to make massive growth in terms of encouraging foreign direct investments, improving their taxation policies and revising trade regulations. The banking sector has grown to a new record peak of 9% providing a strong foundation and liquidity, thereby, allowing credit growth for private firms up to 6.5% enabling them to further their operations. The ruler his Highness Sheikh Khalifa bin Zayed Al Nahyan and his governments have been sprinkling many benefits over global opportunists facilitating the affordable and sustainable setup of business in UAE.
Economic Diversification – Ace in the deck
There was a point in the UAE's life cycle when the majority of the economy was solely dependent on Oil and Gas trade. This used to be the primary bragging rights for many past rulers because of which they did not consider the necessity to seek out other beneficial sectors for developing their economic status quo. The modern-day economists and policymakers did voice out their opinions stating a viable list of reasons on how UAE can be much more than just the planet's oiliest nation. The various sectors that made up the staircase of economic success for the UAE where productive investments were made are infrastructure, technology, tourism and imports & exports, the effective management by the government also ensured that these investments earn apt returns as well.
Since the UAE comprises of 7 different emirates, each having its distinctive geographical and logistical traits, therefore, the federal government felt it was feasible to focus on the strong points of the different emirates to generate collective growth results that resulted in the overall 4.2% increase in the UAE economy. Currently, as we speak, UAE has evolved with a diverse portfolio of economic growth contributors, the proof of which is the 71% total GDP contribution from non-oil sectors.
1.Welcoming Foreign Entities
If there is anything worth analysing about the UAE, it is the reasons "why investors would NOT want to invest in UAE". All possible sources of personal information scouting have been scoured in and out and thus, the only conclusion we can make is that the advantages of investing in UAE far outweigh the liabilities by a considerable margin. It is by far a sure shot that set up a business in UAE will undoubtedly provide opportunities to earn profits post the business' incorporation and pilot stages, but one must keep in mind that different emirates have different industries that are flourishing at during the various quarters across the year. However, with the proper market analysis, tourism companies in Abu Dhabi and tech companies in Dubai have successfully been integrated into their respective geographical, demographic segments.
2.Sustainable Business Environment
Dubai is one of the most comfortable business environments in the world with affordable taxes, available workspaces and an investor filled plethora with industry professionals just waiting to bet their funding on the right businesses and entrepreneurs. Moreover, the government's contribution towards this is unparalleled to that of the various companies functioning in this customised corporate ecosystem. The government has invested in many projects to facilitate industrial growth in their nation, a few being –
- Future Accelerator to promote tech giants to operate from Dubai.
- Dubai International Financial Center
- Abu Dhabi tourism campaign
- Events such as Blockchain summit, Business summits, technology summits across UAE
- Expo 2020 with a focus on sustainable and futuristic solutions
- The advent of business consultancies to assist in incorporation stages for easy setup of businesses and franchises.
Visions for a Better Future
1.Abu Dhabi Vision 2030
The government of UAE is no short of a visionary body in itself boldly announcing the march towards Vision 2030 which sets specific goals and objectives on how to stabilise the Emirati economy to prepare for any big leaps or deep dives that the future holds. The different objectives that the government has set initially for Abu Dhabi are
- Creating an open, efficient, effective and globally integrated business environment
- Adopting a disciplined fiscal policy that is responsive to economic cycles
- Developing a resilient monetary and financial market environment with manageable levels of inflation
- Bringing about significant improvement in the efficiency of the labour market
- Establishing a sufficient and resilient infrastructure capable of supporting anticipated economic growth
- Training and nurturing a highly skilled, highly productive workforce
- Enabling financial markets to become the key financiers of commercial sectors and projects
2.UAE Vision 2021
The year 2021 will witness UAE's Golden Jubilee year, and this is the time when the National Agenda Vision 2021 will reach the climatic end. The purpose of the National Agenda Vision 2021 is to convert the UAE into a premier Alpha Economy, the possible first of its kind across the hundreds of nations in every nook and corner of the planet. The goals that are nearing their achievement stages that were set by H.H. Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, at the closing of a Cabinet meeting in 2010.
- World class Healthcare
- Fair Judicial system
- Competitive Economy
- Sustainable Environment and Infrastructure
- The first-rate Education system
- Cohesive Society and Preserved Identity
The Economy is booming, and entrepreneurs cannot wait to have a slice of this profit pie but what increases their work is the hurdle of incorporation of the company or for setting up a branch office in the UAE. We believe in providing our expert assistance to such enthusiastic industry drivers for simplifying their business setup in the UAE. For more information on how to start your business in the most tax-friendly corporate environments in not only UAE but around the world, Contact us and get a boost up towards your dreams.