Why Do Foreign Investors Prefer the UAE?
As trade tensions and security concerns continue to slow corporate growth in the developed world, increasing numbers of foreign investors look to the UAE as a business destination. There are many reasons behind this, and in this article, we have gathered the top reasons.
Foreign Direct Investment law
Federal Law controls FDI by Decree on Foreign Direct Investment in the United Arab States. The law aims to promote investment, expand and diversify the manufacturing base, and attract international direct investment into sophisticated technology, knowledge, and training.
The legislation applies solely to foreign nationals who initiate investment projects on the continent of the UAE and meet the minimum share capital requirements for each activity authorized by the FDI. The investment project's ability to use modern technology can also lead to a high level of value-added in research and development, meeting the needs of licensees.
The United Arab Emirates, which was published in 2014, is the second most crucial beneficiary of foreign direct investment (FDI) in Western Asia and is a global investment report by the United Nations Conference on Trade and Development (UNCTAD). The economic stability of Dubai, low energy costs, and, most crucially, the tax-free environment for businesses in Dubai attract most foreign investors. Dubai also has a lovely setting for both local and foreign investors because there are no limits to investments.
Free Tax Zones
The UAE has historically disguised the need for general taxation by its glut of hydrocarbon resources. Meanwhile, the 5% VAT introduction in 2018 is contesting this in reaction to the 2014-16 low oil prices; many accessible areas and continental enterprises are exempt from taxation.
Ease of Business
UAE is an attractive country for investors thanks to its open government and support for a mixed economy. Dubai is the second-largest city in the country and the most developed in the Emirates. At present, Dubai has many expats in Dubai, while other enterprises have been founded.