Top New Reforms that Make Dubai the Fastest Growing Investment Destination

Top New Reforms that Make Dubai the Fastest Growing Investment Destination

Dubai, the gateway to lucrative markets in the Middle East, has seen enhanced investment inflows at a time when most other business hubs were languishing due to the Covid-19 pandemic. The landscape of business setup in Dubai continues to attract foreign investments due to factors including ease of doing business, big infrastructure projects, and the creation of a modern & diverse economy in the last 50 years.

The UN’s figures show that global foreign direct investment flows saw a 42% reduction in 2020 due to the pandemic, while the UAE witnessed a 44% growth in inbound foreign investment flow in the same period. A set of economic reforms implemented by the government helped Dubai retain its status as the fastest-growing investment hub in the region. Foreign investors who plan to set up business in Dubai should be aware of such reforms. Some of the key reforms are listed below for your knowledge. Read ahead.

100% Foreign Ownership in Mainland Firms

Earlier, foreign investors had to approach the free zones to set up companies and enjoy 100% ownership. The laws of business set up in Dubai mainland didn’t allow total foreign ownership until 2021. The foreign investors had to grant 51% of shares to a UAE national who served as the local sponsor. Yet, many investors were ready to set up a company in the mainland to enjoy the freedom to trade anywhere in the UAE.

The free zones allow trading within its boundaries only even if 100% ownership is granted. A great change happened in 2021 when the government amended the Commercial Companies Law to remove the requirement of local sponsorship. Nowadays, foreign investors can set up a company in the Dubai mainland with total ownership. Dubai allows full foreign ownership even in commercial license activities such as general trading. Even already existing companies can change their status to single owner limited liability companies (LLC). Business set up consultants in Dubai can facilitate the change of ownership for you without any hassle.

Green Visas & Freelancer Visas

The issuance of green visas by the government is likely to increase the flow of foreign investors into the UAE.  Announced as part of the ’Projects of the 50’, the green visa grants self-residency status to the visa holders. Unlike regular visas, green visas are not linked to a company work permit. This means you don’t need the sponsorship of a company for obtaining residency in Dubai or the UAE. Investors, entrepreneurs, and the individuals who run SMEs can apply for green visas along with highly skilled professionals and top students.

Freelancer Visa enables self-employed professionals to sponsor themselves. It is the only visa for freelancers issued at the federal level. Self-employed professionals engaged in specialised fields such as artificial intelligence, blockchain and digital currencies can apply for freelancer visas in the UAE. Unlike the freelancer permit issued by the free zones, the federal-level freelancer visa in the UAE is not linked to work permits. The new visa will give confidence to foreign investors in Dubai to hire self-employed professionals.

Expanding the Scope of Golden Visa

Golden visas have brought revolutionary changes into the environment of business set up in Dubai by offering long-term residency options. By obtaining a Golden Visa in the UAE, investors and other eminent individuals can enjoy a 10-years residency. The government grants UAE Golden Visas to Investors, entrepreneurs, pioneers, scientists, and individuals with outstanding talents. As part of the ’Projects of the 50’, the government extended the scope of Golden Visa to include managers, CEOs, specialists in science, engineering, health, education, business management and technology. Business setup consultants in Dubai can help you obtain a Golden Visa.

Special Policy for Tech Companies in the UAE

Tech and digital companies have successfully withered the uncertainties induced by the Covid-19 pandemic. The sector is considered one of the most promising sunrise sectors in Dubai with long-term growth promises. Given this positive growth outlook, the government has announced a special strategy for tech & digital companies in the UAE.

The National Policy for Digital Companies is developed to create 1,000 tech companies in the UAE over the next five years. Setting up a tech business in the UAE is the easiest way to benefit from the National Policy for Digital Companies. The UAE will also grant 100,000 golden visas to entrepreneurs, enterprise owners, start-ups and professionals engaged in the tech field, especially coding.

Invest in Dubai with the Help of Jitendra Business Consultants

The reasons described in this article answer the pertinent question of ’why you should set up businesses in Dubai’. The reforms are proof that the government has considered the demands and needs of foreign investors to boost the environment of business setup in Dubai, UAE. New investors may find the company formation process complex, especially the immigration and labour laws. That’s where the best business setup consultants in Dubai such as Jitendra Business Consultants (JBC) can help you.

JBC has a team of highly qualified consultants who can advise you on vital requirements such as visa processing, document drafting, company registration etc. Since JBC is a one-stop solution, you can also get other allied services such as accounting, audit, trademark registration, Economic Substance compliance, Ultimate Beneficial Ownership compliance etc. If you want to set up a business in Dubai the right way, hire JBC as your corporate service provider in Dubai.