The prospect of business setup in Abu Dhabi continues to stay attractive for foreign investors, especially for those focusing on the industrial or manufacturing sector. The growth outlook remains strong for the industrial companies as economic headwinds like the Covid-19 pandemic have exerted only a short term impact. Investors who set up a business in Abu Dhabi are well placed to benefit from an enabling local business environment, strong government commitment to expansion in manufacturing and other non-oil industries, and the extensive and highly developed infrastructure of the emirate’s industrial parks and free zones.
Since the opportunities are plenty, foreign investors need to understand certain key insights of company formation in Abu Dhabi to turn their industrial ventures into success. The investors can enlist the assistance of business setup consultants in Abu Dhabi to know vital basics like legal requirements in the mainland or the right free zone to obtain a trade license etc. This article will serve as a basic guideline for investors who are planning to set up industrial businesses in Abu Dhabi. Read on.
Abu Dhabi is an Industrial Power House
Abu Dhabi’s industrial sector has played the most critical role in economic diversification away from oil & gas based growth. The emirate’s industrial sector is the biggest contributor to the GDP as well. The industrial companies based in Abu Dhabi encompass a wide range of sectors such as steel production to high-tech manufacturing, among other areas.
Manufacturing companies established in Abu Dhabi can leverage the emirate’s geostrategic location through the air, land and shipping routes. Abu Dhabi, the capital city of the UAE is within four hours’ flying time of approximately one-third of the world’s population. This excellent connectivity enables the investors to conduct export and re-export activities with ease.
Opportunities in Abu Dhabi Mainland
The process of business setup in Abu Dhabi mainland presents the foreign investors with a wide range of lucrative opportunities. Establishing a manufacturing company in Abu Dhabi mainland allows the investors to rent or lease warehouses and manufacturing units at affordable rates at main locations.
Furthermore, the manufacturers can trade their products anywhere in the UAE or internationally without any hassle. The industrial license in the mainland is being issued by the Abu Dhabi Department of Economic Development (ADDED). Investors are required to get approval from concerned ministries and authorities to obtain a business license in Abu Dhabi mainland. However, the process can be made easier if investors apply through business setup consultants in Abu Dhabi.
Free Zones Make Licensing Easier
Abu Dhabi has some of the best Free Zones that specifically cater to industrial businesses. A free zone license is rather easy to obtain as regulations are less stringent compared to those in the mainland authorities.
Manufacturing firms can select from a wide range of warehouses, plots of land, labour accommodation etc. provided by the industrial free zones in Abu Dhabi.
Some of the best industrial free Zones in Abu Dhabi are:
- Khalifa Industrial Zone Abu Dhabi (KIZAD)
- Abu Dhabi Airport Free Zone
- Industrial City of Abu Dhabi (ICAD)
Foreign Ownership in Abu Dhabi
Traditionally, setting up a business in a free zone has been the only option for foreign investors to have 100% ownership of their companies. Now, Abu Dhabi allows foreign investors to fully own their mainland companies as well. Select manufacturing activities are permitted 100% ownership in Abu Dhabi mainland. Business setup consultants in Abu Dhabi can guide investors about the activities that are eligible for full foreign ownership.
Push from National Industrial Strategy
The UAE has launched a 10-year national industrial strategy to make the industrial sector the driving force of the country’s national economy. Titled Operation 300bn, the strategy aims to increase the industrial sector’s contribution to the economy from AED133bn to AED300bn by 2031. As part of the strategy, the government will roll out initiatives to support 13,500 industrial SMEs. The process of business setup in Abu Dhabi is an opportunity for investors to leverage the National Industrial Strategy.
Business Setup Consultants in Abu Dhabi: A One-Stop Solution
Abu Dhabi’s industrial sector is growing by leaps and bounds despite the global and domestic economic headwinds. Initiatives such as National Industrial Strategy has only bolstered the appeal of business setup in Abu Dhabi. However, the investors need to make the right legal choices to ensure they succeed in Abu Dhabi. The expert assistance of business setup consultants in Abu Dhabi such as Jitendra Business Consultants (JBC) empowers the investors to make the right choices.
JBC’s highly qualified business setup advisers can help you with all aspects of company formation in Abu Dhabi including visa processing, documentation, bank account opening etc. We also help you with compliance requirements such as VAT return filing, audit, Economic Substance Regulation (ESR), Ultimate Beneficial Ownership (UBO) etc. Company incorporation in Abu Dhabi can be hassle-free with the right business setup partner such as JBC.