Benefits for investors in the UAE

The investment attractiveness of the UAE has been steadily growing in recent years. With the ability to attract significant investment, the country has increased its cumulative FDI inflow and has become one of the most preferred destinations for investment worldwide.

According to the United Nations Conference on Trade and Development (UNCTAD), the UAE was ranked first in the Arab world and 19th in the world in terms of its ability to attract foreign direct investment (FDI) according to the World Investment Report 2022. The UAE also ranked 17th in the world in terms of FDI outflow and was recognized as the most attractive country for investment in the regions of Western Asia, the Middle East and North Africa. Today, the UAE is looking to attract more investment, improve its investment environment, provide more incentives for investors and improve its ranking in the Ease of Doing Business Index.

The UAE offers various incentives for investors to increase the number of small and medium-sized enterprises (SMEs) and start-ups in the country. With the simultaneous removal of barriers by the state that impede the inflow of investments, this also contributes to the diversification of sources of national income. The UAE strives to make investment the engine of the national economy.

100% company ownership

Investors of all nationalities can set up and wholly own companies in the UAE. This change came after the entry into force of the Commercial Companies Law in 2020, according to which a foreign company wishing to open a branch and operate in the UAE does not require the presence of a UAE national agent.

40 free zones for company registration

More than 40 free zones allow tax exemption and 100% foreign investor ownership. The UAE also provides these investors with great flexibility in choosing the most suitable areas to set up their business. Free zones are located throughout the UAE, which allows investors to engage in a wide variety of economic activities.

Investments in all types of economic activity

Foreign investors can invest in trade, industry, agriculture, services, education, healthcare and construction, as well as a number of other sectors in the UAE. There are over 2,000 licensed businesses, with only a very limited number of domains excluded by local laws.

Different Legal Ownership

In light of the entry into force of Federal Law No. (26) of 2020 "On Commercial Companies" foreign investors are allowed various forms of legal ownership such as public joint stock companies, private joint stock companies, limited liability companies, limited liability partnerships and partnerships.

No requirements for national agents

The UAE Business Companies Law does not require foreign companies wishing to establish a branch and operate in the UAE to have a local national sponsor/agent, which gives foreign companies a strategic advantage and makes it easier and more transparent to do business in the country.

Control of boards of directors of joint-stock companies

The chairman and majority of board members of joint stock companies are not required to be UAE nationals in accordance with the UAE Commercial Companies Law, which gives foreign investors the right to fully control their shares in companies, unless otherwise provided by any decree or regulation.

No minimum capital

UAE law requires investors to state the cost of capital in company incorporation documents and articles of association, but does not require a minimum amount for limited liability companies. This greatly facilitates the registration of companies and the creation of new enterprises, and also gives investors additional flexibility in planning their projects.

No Income Tax and Full Profit Transfer

The UAE does not impose income tax on individuals, investors or corporations, with the exception of oil companies and branches of foreign banks. As a country with a free economy model from the very beginning, it allows individuals and investors to freely repatriate their profits in full.

Golden visa for investors

The UAE issues long-term residence visas for a period of 5 to 10 years to investors, entrepreneurs and talented people. This allows expatriates and their family members who wish to live, work or study in the UAE to settle down, establish their own business and enjoy the benefits of extended residence.

Easy commissioning

The UAE is considered an incubator for skilled workers, human capital and talent in vital and economic sectors due to its flexible labor policy and ease of attracting foreign labor. The ever-growing business sector in the UAE is cultivating highly qualified professionals in various fields.

Low Customs Tariffs

Low customs tariffs have contributed to the strengthening of the UAE's status as a trading center. State tariffs in the country range from 0% to 5%. Thus, the UAE is leading in global and regional trade, ranking 3rd in the world and 1st in the Arab world in terms of re-exports.

Benefits for the industrial sector

The UAE is offering a package of competitive incentives to support investment in industrial and technology companies operating in strategic industries. In partnership with the Emirates Development Bank, these incentives offer competitive financing opportunities for priority industries and advanced technology sectors, competitive tariffs for the energy sectors, exemption from customs duties on investments and inputs for the industrial sector, such as machinery and raw materials, in addition to the "Intrinsic Value (ICV) Program"; and the Do It in the Emirates program, which aims to unify the identity of the local industry, and other incentives provided to the industrial sector.

Promising sectors for foreign investment

In key sectors of the UAE economy, there has been a steady increase in investment inflows, with several national companies entering into partnerships with foreign firms. The country seeks to attract additional investment in promising industries such as advanced technology, artificial intelligence, research and development, the digital economy, which stimulate innovation and improve economic performance.

UAE – economy of the future

The country aims to strengthen its position as a global hub for business focused on innovation, artificial intelligence and entrepreneurship. To this end, the UAE has launched a series of strategies that ensure sustainable economic growth based on science and advanced technologies, as well as through the use of exceptional talents, skills and competencies.

Growth rates in the sector of knowledge-intensive economy

Over the past five years, notable results have been achieved, embodied in the growth of sectors of the economy focused on the future.

CAGR:

• Information and Communications Sector — 5.4%
• Education Sector — 5.6%
• Professional, scientific and technical activities — 1.9%
• Industrial sectors — 4.2%

Strategies for the economy of the future

UAE Centennial 2071

Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, announced in 2017 the "UAE Centenary 2071" as a roadmap to make the UAE the best country in the world by 2071. The century is based on four key principles: a future-oriented government, excellent education, a diversified knowledge-based economy, and a happy and cohesive society. As part of the axis "the best economy in the world"; The UAE aims to become a global hub for attracting the best minds, ideas and talents, as well as offering the best business opportunities, a stable environment and cutting-edge infrastructure. Constantly growing investment in artificial intelligence, biotechnology, nanotechnology,

Fifty economic plan — roadmap to the future

In December 2019, the Ministry of Economy launched the Fifty Economic Plan to build a future-oriented economy in the UAE. As part of the strategy "On the way to the next 50" it serves as a roadmap for economic endeavors over the coming decades. The strategy includes five main areas: an integrated economy, entrepreneurship and SMEs, tourism, foreign direct investment and exports, and attracting and retaining talent. The plan aims to achieve a quantum leap in the national economy by 2030 and support GDP growth by creating a prosperous local business environment and enabling UAE companies to thrive and become a global leader. The pillars of this future-oriented economy include sectors such as space technology and digital entertainment, along with the opening of new markets and the creation of a progressive legislative landscape that serves economic aspirations. At the same time, the ministry promotes easier doing business, supports family businesses, and protects and encourages investment.

Emirates Blockchain Strategy

The strategy was launched in 2018 with the aim of harnessing and benefiting from advanced technologies for the benefit of society. In addition, the efficiency of the government is increased by transferring all UAE government transactions to blockchain platforms. The strategy is based on four key themes: the happiness of citizens and residents, improving the efficiency of government, cutting-edge laws that will qualitatively transform the operation of the federal government, and the UAE's international leadership in the field of information security and transmission. This will empower individuals, institutions and policy makers, save time, effort and resources, and enable the UAE to become one of the world’s most transformatively advanced countries.

UAE Green Growth Strategy

The UAE's Green Growth Strategy aims to achieve sustainability in the economic, social and environmental sectors, rather than dependency on oil resources. The UAE aims to become a global leader in green economy, the center of export and re-export of "green" products and technologies, and to create a sustainable environment conducive to long-term economic growth. The strategy includes a set of programs and policies covering the areas of energy, agriculture, investment and sustainable transport, combined with new environmental and urban policies aimed at improving the quality of life in the country. This strategy consists of 6 key areas: green energy, government policies that stimulate investment in a green economy, green cities, combating the effects of climate change, green living and green technologies.

UAE Strategy for the Fourth Industrial Revolution

The UAE's Fourth Industrial Revolution strategy aims to strengthen the country's position as the global hub for the next industrial revolution and promote the development of a competitive national economy based on futuristic applications that integrate material, digital and biological technologies. This is in addition to using technology and tools to serve community members and achieve public happiness. Key pillars of this strategy include the adoption of various plans and genomic medicine and genomic medical tourism, as well as strengthening economic security through the implementation of the digital economy. The strategy also includes the development of advanced technologies, from artificial intelligence and nanotechnology to the Internet of Things and 3D printing, to support economic growth.

UAE Circular Economy Policy

Circular economy policy provides direction towards sustainable economic management, as well as the optimal and efficient use of natural and environmental resources through the introduction of the best practices and technologies for sustainable consumption and production. This should ensure a high-quality lifestyle for current and future generations, increase the efficiency of natural resource consumption and minimize waste. The policy also aims to improve the state of the environment and encourage the private sector to adopt cleaner industrial production methods and technologies, as well as realizing the UAE's vision of becoming a leader in green development. The most important policy outcomes include generating significant economic revenues for the country, mitigating environmental pressures, securing the supply of raw materials, etc.

National AI Program until 2031

The UAE is one of the best prepared countries for technological change, especially in light of their extensive efforts to create a future-oriented and highly developed infrastructure that can improve the quality of life for people and communities. In line with the goals of the UAE Centenary 2071, this strategy is considered the first of its kind at the global level and consists of eight strategic goals, five themes and a set of initiatives aimed at using artificial intelligence in the development of vital sectors for the country, such as education and the economy. It also aims to improve government efficiency, achieve social happiness, create a new and promising regional market of high economic value, support private sector initiatives, and increase productivity. Target sectors include transport, healthcare, space and more.

UAE Energy Strategy 2050

UAE launches its Energy Strategy 2050 in 2017, and the country's unified energy plan balances production and consumption with global environmental commitments. The strategy contributes to the creation of an attractive and favorable economic environment that stimulates the growth of all sectors and aims to increase the efficiency of individual and corporate energy consumption by 40%. It also aims to increase the share of clean energy in the overall energy mix from 25% to 50%, saving the equivalent of AED700 billion in energy needs by 2050 and ensure sustainable economic growth. According to the strategy, the energy balance will be as follows: 44% clean energy, 38% gas, 12% clean coal and 6% nuclear energy.

Funds and projects to finance the economy of the future

The UAE continues to improve the future of the financial sector by launching several innovative projects and programs aimed at accelerating the adoption of an innovative knowledge-based economy. They are designed to achieve sustainable development, adapt to rapid global change and meet future challenges.

Mohammed bin Rashid Innovation Foundation (MBRIF)

Mohammed bin Rashid Innovation Foundation — is a federal government initiative with a capital of AED 2 billion to support innovators and help them secure the necessary funding for their projects. Resident individuals and companies of all sizes registered in the UAE can benefit from this fund if they have unique and innovative ideas. The Fund aims to fill the funding gap for innovative projects, increase the economic competitiveness of the UAE and expand opportunities for national growth.

Dubai's Future Area

Dubai Future District was launched with the aim of being the largest environment for building a future-oriented economy, an incubator of promising ideas, and a source of funding and legislative solutions that serve start-ups and entrepreneurs. The project is designed to make the Dubai economy more ready for the challenges ahead and will include a research centre, incubators, accelerators and an innovation space for the pioneers of the economy of the future.