Investing in the UAE has become a popular idea and a clear indication of a successful investment move, due to the UAE’s distinctive infrastructure and business receivable.
Such an important step must be studied well and make sure of the advantages that you will get as a result of that investment, the costs you need to start your project and the necessary legal procedures.
Unexpectedly, investing in the UAE does not require huge capital, as there are projects of different size, cost and profit that you can choose from that are most suitable for you.
So you should not hesitate in this step because of its many features that you can get.
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Advantages of investment in the UAE
The UAE is known as a destination for investments and businesses due to its infrastructure equipped for various businesses, the availability of equipped labor from all over the world and its high economic position globally.
The UAE ranks 25th among the most economically stable countries in the world according to the Global Competitiveness Report 2019, and it also ranks first in the Middle East.
Even under the circumstances of the Corona pandemic, which affected the global economy, the UAE has managed to maintain its high economic position.
Economic stability in the UAE depends on a number of factors, including:
- Strategic location.
- Strong financial reserves.
- Large political wealth funds.
- Strong and well-established international relations.
- Escalating government spending on infrastructure, digital transformation and innovation.
- An open government policy for diversity and innovation.
- The presence of many free zones equipped for different investments.
- Increase foreign direct investment.
The UAE is a safe place to live and invest in the UAE because of its spread of the values of tolerance, respect for others and economic diversity, and it also enjoys the first place in the Arab world in the general index of the World Happiness Report 2020, as it is:
- She was appointed Minister of Tolerance, and launched the Flag of Tolerance and the National Program for Tolerance.
- Legislation has been passed to combat racial discrimination and hatred.
- It hosted the Meeting of Human Fraternity to promote the values of dialogue and coexistence among human beings.
- Develop legislation to support vulnerable community groups in the country.
The UAE enjoys political stability and diplomatic openness to all countries of the world, and it hosts about 200 foreign missions on its territory, which gives it a suitable climate for those who wish to invest in the UAE, as it is:
- Member of the Gulf Cooperation Council.
- Member of the Arab League.
- Member of the United Nations and its institutions.
- The third safest country in the region according to the 2021 Global Peace Index released by the Institute for Peace and Economics in New York.
The UAE seeks to provide a fertile environment for investors to achieve its high economic position, so it seeks to provide all means of comfort and services for the ease of doing business without restrictions, as well as providing the necessary facilities equipped with strong infrastructure and supporting it with strong expertise.
According to the World Bank Report 2020, the UAE ranked sixteenth globally in the ease of doing business, and the report includes 10 axes, including one of the top ten in five axes, as follows:
- ‘Electricity Connection’: First place in the world.
- ‘Dealing with Building Permits’: Third place globally.
- ‘Contract Enforcement’: Ninth place globally.
- ‘Property Registration’: Tenth place globally.
The UAE allows investors to establish businesses anywhere in the country, in addition to the presence of free zones, industrial zones, commercial facilities, and others, as follows:
- More than 45 free zones allow 100% foreign ownership.
- Economic Development Departments, which allow 100% foreign ownership in 122 activities and 13 economic sectors.
- It offers modern commercial and industrial business centers.
- The State hosts international conferences and exhibitions, trade and investment events.
The UAE is characterized by the strength of cadres, labor skill and cultural diversity, which contributes significantly to increasing productivity and innovation, as the country is characterized by:
- The official language is Arabic, in addition to the use of English and many major languages on a wide range depending on business needs.
- The UAE has launched a new visa system to facilitate the attraction of capable cadres in the fields of health, scientific research, technology and culture.
- The UAE seeks to be the first destination for all talented and skilled workers to be the largest owner of the largest human capital in vital and economic sectors.
When investing in the UAE, you can get a number of investment advantages for entrepreneurs:
- 100% foreign ownership of investments in free zones.
- 100% foreign ownership of investments in 122 activities and 13 sectors.
- Profit returns up to 100%.
- A flexible visa system that allows residency renewal every 10 years.
- Strong support for the banking sector and a strong banking system.
- Lifting restrictions on foreign currency transfers.
- Currency appreciation and freedom of exchange for other currencies without restrictions.
- Low inflation rate.
- Lower tariffs to be between 0% and 5% for almost all goods.
The UAE encourages investments in the private sector and prevents monopoly through the application of certain laws and legislation to protect competition, and it also enjoys strong relations with major commercial organizations at the regional and international levels, which gives investment in the UAE a wide area, as the UAE has membership in international organizations, as follows:
- Member of the World Trade Organization since 1996.
- Member of the Greater Arab Free Trade Organization (GAFTA), which includes all GCC countries.
- Free trade agreements were concluded with Singapore and the European Free Trade Areas.
- Cooperation with GCC countries to conclude free trade agreements with the European Union, Japan, China, India, Pakistan, Turkey, Australia, South Korea, Brazil, Argentina, Uruguay and Paraguay.
The best investment projects in the UAE with a small amount
Although the UAE always opens its doors to huge investments, investing in the UAE with a small amount of space through which you can enter and start establishing your business in the UAE, among the projects that you can invest in in the UAE:
Cryptocurrencies
Digital currencies are virtual currencies that are traded through the Internet without being subject to any government or banking agency, and they are diverse, the most famous of which is Bitcoin.
If you want to invest in the UAE in cryptocurrencies, you have to constantly follow their market because it depends on seizing opportunities, where you have to buy in the period when their value is falling and sell in the period when the value of digital currencies is rising.
Cryptocurrency trading is widespread and well-known in the UAE, and it is one of the successful investments that depend on good behavior and careful monitoring of the market.
Stock Market
You can invest in the UAE by trading in the stock market where you can buy and sell shares in public sector companies, which is a great opportunity to invest, as it helps raise the value of capital and help companies grow.
There are a number of methods used in the stock market, including:
- Stock speculation.
- Long-term investment.
- CFDs.
To invest in the stock market, you should look for a broker with a number of qualities such as competence, experience and honesty to be able to reach the highest possible return.
Investing in Gold
Gold is a precious metal that maintains its value and its value is not affected by any economic factors or inflation, and to invest in gold you should pay attention to some factors:
- Buying gold in a period of depreciation and selling it when it rises in value.
- Consult an expert before buying and selling to make sure you get the best possible price.
- Purchase of 24-caliber bullion.
- Buy gold from surplus funds.
- Keep an eye on the gold market because its value changes around the clock.
Investment projects in the UAE
You can start with the step of investing in the UAE, and choose between many areas of great interest, including:
Tourism Companies
The UAE has become a global destination because of its upgrading of all services, as it is nicknamed the cleanest country in the world, and investing in tourism to and from the UAE guarantees you a huge financial return due to the large number of visitors to the UAE daily.
There are also many UAE residents who constantly want to visit other places around the world and having a travel company in the UAE that coordinates trips for them is a source of more confidence for them than looking outside.
So investing in the UAE in the tourism sector is a good step towards a significant investment with visible returns.
Real Estate Investment
The number of people coming to the UAE to work daily is increasing in large numbers, and providing suitable accommodation is a constant requirement.
Real estate investment can occur on more than one level, from the provision of a few housing units to huge real estate projects.
But you should pay attention to choosing a privileged location, such as Dubai, free zones or other investment destinations, and it is important to equip residential units with living basics.
Marketing and advertising
With the UAE being the destination of investors, competition is fierce, and every company wants to look great to attract the largest number of customers.
One of the successful areas of investment in the UAE is marketing and advertising companies because the demand for them is increasing with the increase in business, and providing more marketing services and marketing wonderfully for your marketing services make you a special place among investors.
Providing skilled workers from different nationalities ensures the diversity of marketing ideas and languages that investors who want to expand around the world need.
Technology
Technology occupy the largest area of attention in the UAE.
The UAE is undertaking initiatives to attract investors in these areas, such as the Foreign Investment Initiative, which seeks to attract 300 digital companies in the field of advanced technology applications in many sectors.
It is therefore important to start positioning yourself among investors in the technology field to ensure a successful investment in the UAE.
AHG is a leading regional auditing and chartered accounting firm, present in the GCC and North Africa. Since 2014, AHG has helped companies operating in the UAE to maximize success. We are fully prepared to help your business in the UAE through a team of trained tax experts to prepare your business for corporate tax in the UAE.
AHG-Dubai Group serves a wide range of clients and multinational companies. This comes in light of the company’s strategy to focus on two main pillars: geographical expansion in frontier markets and driving a positive community culture. By combining our strengths and expertise in the region, we offer our clients best-in-class services tailored to their needs to maximize their investment goals in a rapidly changing environment.
