Why Business Relationship Between UAE & France is a Need of the Hour
The UAE’s ease of doing business, modern infrastructure and investor-friendly climate has always been appealing to the European countries, especially France. France and the UAE have been maintaining a strong trade relation for years, and the two countries reaffirmed the friendship recently in the wake of the global pandemic.
Post the pandemic, the process of business setup in UAE has become more attractive to the French businessmen thanks to the government’s proactive policies. Here we are engaging you in a detailed discussion on the top reasons that make the business relationship between UAE & France more important now than ever.
History of Strong Trade Partnership
France had realised the perks of doing business in the UAE much earlier, and the statistics prove the strength of the relationship between the two countries. The UAE is the second-largest client and the third-largest supplier of France in the MENA region. The two countries boast of nearly $ 5,7Bn in bilateral trade which is set to grow further in the years ahead. The strong trade relationship is inspiring enough for French investors to set up businesses in the UAE.
Apart from bilateral trade relations, France’s love for the UAE is discernible in the overwhelming number of French companies operating in the UAE. There are more than 600 subsidiaries of French companies operating in nearly all the major sectors of the UAE economy. These companies provide employment opportunities for over 30,000 people. One of the main reasons for the overwhelming presence of French companies should be attributed to the straightforward process of business setup in Dubai and other emirates in the UAE. Also, the services of business setup consultants in Dubai allows foreign investors to compensate for their lack of knowledge in the local laws.
Investments in a Liberal Taxation Regime
Investors from France find the opportunities of company formation in the UAE as highly lucrative not only due to the plethora of business opportunities but also owing to the tax benefits. France and the UAE had foreseen the potential of investments in the 1980s and entered into robust tax treaties. The UAE ratified the Double Taxation Agreement (DTA) with France in 1989 and amended the same in 1993.
The DTA has helped the French investors avoid double taxations and provided real incentives to international investments. Also, the UAE is generally a tax-free jurisdiction as the country has not yet imposed income tax and corporate tax (oil & gas sectors is an exception) on investors. However, the UAE introduced VAT in 2018, which is a meagre 5%.
Roadmap for Strategic Partnership
The UAE and France recently held a virtual conference in which the officials of the two countries have laid out a 10-year roadmap for a strategic partnership. The roadmap points to the likelihood of identifying and developing future business opportunities involving the two economic powers. Investors can anticipate lucrative opportunities of business set up in UAE in sectors such as technology, food security, as well as advanced sciences, human capital, research and development.
New Reforms a Boost for French Investors
Even though 2020 has not been kind to the world in general, the dynamics of business setup in Dubai, UAE has undergone changes that have been welcomed by the business community. Many of these reforms, including the ratification of the FDI law that allows 100% foreign ownership in mainland companies, have excited the foreign investors. Foreigners investing in agriculture, manufacturing and services sectors are allowed total ownership in their companies subject to certain conditions.
In addition to the FDI Law, welcome changes have been introduced in the social spectrum as well. Decriminalisation of alcohol consumption is one of the key reforms in this regard. Touted as a secular-leaning change, the new reform would ensure that the UAE’s food, nightlife and entertainment segment becomes more appealing to foreign investors, especially the French. More lenient living conditions would make the process of business setup in Dubai more attractive for French investors who are known to be more liberal in their attitude and lifestyle.
The French Transcend Linguistic Barriers
French investors won’t feel alienated while living and doing business in the UAE, especially with the language. The UAE is not a Francophone country, but the presence of an active French community in nearly all the emirates (especially Dubai) makes life easier for the French businessmen. Data suggest that more than 30,000 French Nationals are living in the UAE.
Even though Africa has more French-speaking countries, the investors from France find it safer to establish their businesses in Dubai considering the political stability in the UAE. Moreover, the UAE offers efficient airlines, logistics facilities to international firms linking to the Middle East, North Africa, and West Africa – all of which have large French-speaking populations.
How Can a French Investor Set up a Business in Dubai, UAE?
We have listed here some of the reasons why the trade relationship between the UAE and France is assuming greater importance in the current business climate. French investors who wish to make the best out of these business opportunities should initiate the process of business setup in Dubai, UAE, to taste success. As one of the prominent business setup consultants in Dubai, Jitendra Business Consultants (JBC) assists foreign entrepreneurs to establish their presence in the UAE.
Our highly qualified business setup consultants help the investors by providing expertise on legal structures, licensing procedures, and securing approvals from authorities. JBC simplifies the hurdles of company formation in UAE by providing a one-stop solution, including assistance with visas, PRO services and bank account opening. Because we tend to the legal aspects of the business setup process, investors can focus on building and expanding their business.