UAE has among the most liberal trade regimes in the Gulf, with high per capita income and a high annual trade surplus. Companies from many parts of the world are now choosing to shift base to UAE, and several are opening offshore companies here. Kavan Choksi points out that today UAE is a home to a number of start-ups and multi-million dollar conglomerates. Choksi is an experienced business expert.

Kavan Choksi briefly marks the various factors that make UAE a perfect place for establishing a business

The regulations of the establishment and conduct of businesses is shared at the emirate and federal levels in the UAE. Effective 1st June 2021, this country removed the requirement for companies to have a local sponsor. This allows foreign entrepreneurs and investors to establish and wholly own onshore companies in most of the sectors. The amended ownership law is a part of the efforts of the UAE government to improve the ease of doing business, and enhance the appeal of this country to foreign talent, entrepreneurs and investors. It shall further boost the position of UAE as an international economic center, as well as encourage the flow of investments to important industries.

As per the Global Competitiveness Index Report 2019 issued by the World Economic Forum (WEF), UAE has been ranked as the most competitive economy in the Middle East and North Africa (MENA) region. This report states that the adoption of information communications technologies by the country complements long standing competitive advantages, including a sound product market, modern transport system and a stable macroeconomic environment.

Broadly speaking, UAE does present a pretty favorable business environment. Kavan Choksi mentions that professional experience and personalized services coupled with excellent infrastructural facilities provide the UAE with an edge over other countries. This country was ranked 16th globally, as per the World Bank’s Ease of Doing Business Report 2020. UAE was additionally ranked 3rd globally in ‘dealing with construction permits’, 9th in ‘enforcing contracts’ and 10th in ‘registering property’.

The UAE encourages private sector competition and growth, and tends to enforce regulations that prohibit monopoly. It is known to have strong ties with important regional and international trade associations. The UAE has been a member of the World Trade Organization (WTO) since 1996, and is also a member of the Greater Arab Free-Trade Area (GAFTA) in which all GCC countries participate. The country is concluded Free Trade Agreements with Singapore and the EFTA, and is cooperating with the GCC countries to conclude the Free Trade Agreements with many nations.

The talent and labor force in UAE is among the most skilful in the world, which adds to the appeal of establishing a business in this country. The multi-cultural population of UAE enhances workforce creativity and productivity. This nation aims to be the very first incubator of skilled professionals and talented human capital in dynamic, economic sectors.

All the factors highlighted above, along with expanding infrastructure and strategic geographic location, make UAE a perfect place to do business.

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