Why You Should Relocate Your Business to Dubai in 2022?

2022-05-17

A wave of positive change has been sweeping across the landscape of business setup in Dubai right from the last leg of 2020, and it continues without pause in 2022 as well. At a time when the global economies were gasping for breath owing to a deadly pandemic, Dubai showed resilience and attracted foreign investments.  As per the latest data from Dubai FDI Monitor, the emirate attracted AED15.9 billion (US$4.3 billion) of FDI capital inflow from 378 projects in the first nine months of 2021, a substantial growth from the same period of 2020.

This positive growth has made Dubai the third-most preferred destination for foreign investments globally. A ranking by Financial Times’ fDi Markets also places Dubai among the top Foreign Direct Investment (FDI) destinations of the future. It’s astonishing to note that Dubai consolidated its appeal among foreign investors at an era when the global economies swayed to the tune of the Covid-19 pandemic. What bolstered the emirate’s attractiveness is a set of investor-friendly policies, which is why it’s a sensible idea to relocate your business to Dubai in 2022. We have listed here some top reasons that justify your decision to move to Dubai to do business:

Ease of doing business

Foreign investors relocate their business into the emirate lured in by the favourable environment of business setup in Dubai. The UAE currently ranks 16th in the Ease of Doing Business Index compiled by the World Bank. As per the World Bank’s Doing Business 2020 report, the UAE has an Ease of Doing Business score of 80.9 out of 100, making it the strongest achiever in the entire Middle East and North Africa region.

Ability to own a business with full control

Before 2021, 100% foreign ownership has been the unique selling point of free zones to attract foreign investment. Expatriates who owned mainland firms were required to engage a UAE national as a local partner holding at least 51% of the company’s shares. However, the landscape of business setup in Dubai changed when the government allowed foreign investors to start mainland companies with 100% foreign ownership. Selected industries in the UAE mainland can now be fully owned by foreigners. Consult with business setup consultants in Dubai to start a company with 100% ownership.

Diverse Range of Visas for Long-time Residency

In the past two years, the UAE has introduced a series of reforms aimed at improving the long-term residency aspirations of expatriate investors. As a result, the UAE rolled out the Golden Visa, Green Visas and visas associated with property investments. Golden Visas offer both five years and ten-year residency for residents subject to certain conditions and eligibility criteria. A UAE Golden Visa can be obtained by individuals such as investors, entrepreneurs, specialised talents, researchers of various fields of science and knowledge, exceptional students, doctors etc.

The UAE Green Visa is another residency option introduced by the government recently. The Green Visas target high-skilled people, investors, entrepreneurs, top students and graduates etc. The biggest highlight of a UAE Green Visa is that it de-links residence permits from work permits. The Green Visa also allows you to sponsor your parents, spouse and children. Green Visa holders can sponsor their children up to the age of 25.

The Entrepreneurial Nation Initiative

If you are an entrepreneur wishing to open a startup or an SME in Dubai, you have some good news. You can leverage the benefits of the Entrepreneurial Nation initiative announced by the UAE government in November 2021. The core objective of the UAE Entrepreneurial Nation initiative is to make the UAE home to 20 unicorns, or start-ups valued at over USD 1 billion, by 2031. Business ventures that become part of the initiative will receive support from the government through a series of public-private partnerships.

The government will support the entrepreneurs to establish startups in the UAE, expand businesses, export products and explore e-commerce sales. A private equity fund worth AED 1bn will be established for lending to SMEs operating in strategic sectors. Business set up consultants in Dubai can help SMEs and startups to take advantage of the UAE Entrepreneurial Nation initiative.

Dubai Boasts of a World-Class Infrastructure

Foreign investors relocate to Dubai being attracted by the emirate’s excellent infrastructure facilities including well-maintained roads, modern public transport system and easy connectivity. The upcoming Etihad Rail is nearing completion of stage 1 and Dubai will also benefit from it. The sophisticated infrastructure makes it a global world trade centre.

A Hotbed of Future-ready Innovation

Dubai is at the forefront when it comes to building future-ready innovation for businesses. The emirate has developed robust policies for future technologies such as Artificial Intelligence, 3D printing, blockchain, autonomous transport, 5G communication and the Internet of Things. Dubai continues to boost digital infrastructure to deliver on its goal to create a data-driven economy estimated to generate an additional USD2.83 billion in GDP. Also, Dubai is en route to becoming the world’s first city to be powered by blockchain technology.

Special Policy for Tech Companies

If your startup is in the tech industry or your core area of business is coding, then you should immediately switch your base to Dubai. The UAE has recently announced a National Policy for digital companies to create over 1,000 tech companies in the country over the next five years. The country will also grant 100,000 golden visas to entrepreneurs, enterprise owners, start-ups and professionals in the tech field, especially coding.

Relocate to Dubai with the Help of Jitendra Business Consultants

The reasons described in this article answer the pertinent question of ’why you relocate your business to Dubai’. Apart from the traditional attractions, the government has announced certain progressive reforms to boost the environment of business setup in Dubai, UAE. However, switching over to Dubai will appear to be a complex process for investors who are unaware of the UAE laws, especially the immigration and labour laws. No need to worry, business setup consultants in Dubai such as Jitendra Business Consultants (JBC) can help you.

JBC’s highly qualified business setup advisers are well-versed in the UAE immigration laws and Labour laws. We offer a one-stop solution for key requirements such as visa processing, document drafting, company registration etc. We also provide compliance services related to VAT,  Economic Substance Regulations (ESR), Ultimate Beneficial Ownership compliance (UBO)etc.

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