Over the last 40 years, the UAE has successfully diversified\nits economy to reduce its reliance on the energy industry. As a result, the\nnation now offers international business opportunities across numerous sectors\n\u2013 from tourism to technology.<\/p>\n\n\n\n
The government continues with its positive efforts in this\narea, including an increasing number of incentives designed to attract\nprofessionals and independent business people from all over the world and support\nsmaller enterprises.<\/p>\n\n\n\n
These include:<\/strong><\/p>\n\n\n\n So let\u2019s look in detail at these five ways the UAE\ngovernment encourages entrepreneurs to open a company here.<\/p>\n\n\n\n Allowing 100% foreign-owned businesses<\/strong><\/p>\n\n\n\n In May 2019, the UAE government announced it would soon be\npossible for foreign entrepreneurs to be 100% shareholders in a locally\nincorporated business.<\/p>\n\n\n\n Total foreign ownership was previously only permitted in the\nUAE\u2019s increasing number of free zones, meaning businesses incorporated\n\u2018onshore\u2019 had to be 51% locally owned.<\/p>\n\n\n\n This change will now give anyone looking to start a business\n\u2013 or already operating businesses in other countries \u2013 the opportunity to get\neasier access to the UAE.<\/p>\n\n\n\n As a result, the playing field for international\nentrepreneurs looks even more attractive, particularly when paired alongside\nother other developments.<\/p>\n\n\n\n Offering extended visas for entrepreneurs<\/strong><\/p>\n\n\n\n In November 2018, the UAE government began actively issuing\nfive-year visas to entrepreneurs looking to set up in the country.<\/p>\n\n\n\n Eligible candidates for the five-year entrepreneur visa must\nhave a business with a minimum capital of AED 500,000, or the approval of an\naccredited business incubator in the country (such as Hub 71 \u2013more on that\nbelow).<\/p>\n\n\n\n In May 2019 the UAE brought in a new system for five- and\nten-year residency visas, enabling outstanding non-UAE investors and\nspecialists to live, work and study here without a national sponsor. The visa\ncan be renewed if the holder\u2019s circumstances remain positive.<\/p>\n\n\n\n These five- and ten-year visas require investments of AED 5\nmillion and AED 10 million respectively. There are currently 125 business areas\nthat UAE-based expats can operate in without the requirement of a local\nsponsor.<\/p>\n\n\n\n With the introduction of the Gold Card visa in May 2019, the\nnext best thing to permanent residency is now available to the top tier of\ninvestors, entrepreneurs, chief executives, scientists and outstanding\nstudents. The visa is reviewed every ten years, and, unlike other visa holders,\nGold Card residents can live outside the country for a period of more than six\nconsecutive months.<\/p>\n\n\n\n These developments are seen as a way of making it even more\nattractive for the international business community to work in the UAE.<\/p>\n\n\n\n For those looking to get started in the UAE, whether you\u2019re\nalready living and working here or coming from abroad, having a long-term visa\noffers both stability and opportunity.<\/p>\n\n\n\n Attracting tech businesses to the UAE<\/strong><\/p>\n\n\n\n In many parts of the world, the terms \u2018entrepreneur\u2019 and\n\u2018startup\u2019 are synonymous with technology. While not traditionally a tech hub in\nthe same way as San Francisco, the UAE is making some strategic moves to change\nthis.<\/p>\n\n\n\n The UAE government announced the creation of a new\ntechnology space, Hub 71, earlier this year. Based in Abu Dhabi, Hub 71 is a\njoint partnership with Microsoft. The fact the government has also earmarked\nAED 500m in investment funds as part of the overall initiative is further\nevidence of the UAE\u2019s commitment to attracting international tech talent.<\/p>\n\n\n\n Coupled with its ambitious Government Accelerators\u2019\nprogramme which includes Ghadan 21 \u2013 a three-year development plan worth AED\n50bn \u2013all of these efforts make it pretty clear that the UAE government wants\nto create an even more thriving tech scene here. <\/p>\n\n\n\n Providing funding and support for smaller businesses<\/strong><\/p>\n\n\n\n Given the leaps and bounds being made in providing help and\nsupport to entrepreneurs and startups, it\u2019s no surprise that the UAE ranks\nhighly for online access to administrative and government services.<\/p>\n\n\n\n To make things easier for businesses, it was recently\nannounced that 5% of government capital projects will be allocated to small and\nmedium enterprises (SMEs). This comesas part of a drive to encourage them to\nenter into major projects contracts with government agencies, and form\nalliances to compete for government projects.<\/p>\n\n\n\n Currently aimed at Dubai-based SMEs, this move will allow\nthem to receive contracts for projects worth up to AED 400m.<\/p>\n\n\n\n Also, in order to provide SMEs with greater liquidity, those\nworking on UAE government projects will now be paid within 30 days, according\nto recent news. Previously, public sector project payments were paid within a\n90 day period.<\/p>\n\n\n\n In addition, in the run up to next year\u2019s Expo 2020, the\nDubai government has earmarked 20% of all related contracts to SMEs.<\/p>\n\n\n\n Creating a favorable environment for living and working<\/strong><\/p>\n\n\n\n Weather aside, there are so many reasons why the UAE is an\nattractive place for entrepreneurs to live and work. In many cases, it\u2019s due to\nthe tireless efforts of the government here to make it so.<\/p>\n\n\n\n According to an expat study, the UAE ranks 25th in the world\nfor quality of life. It also takes the number nine spot for safety and security\n\u2013 making it an attractive location for entrepreneurs with families. It helps\nthat visas for spouses and offspring are also easy to obtain once the main\nsponsor is accepted.<\/p>\n\n\n\n From a commercial perspective, the UAE is ranked 11th in the\nworld for overall ease of doing business. Plus, there\u2019s no personal tax,\ncorporation tax, or any requirement to submit returns for the vast majority of\nbusinesses. This certainly reduces the operational burden of running a company\nhere.<\/p>\n\n\n\n The UAE has a strong tradition of encouraging talented\nindividuals to come here to live and work. However, looking at these recent\ndevelopments, it\u2019s increasingly evident that the government is now keen to\nattract independent entrepreneurs from a range of disciplines.<\/p>\n\n\n\n As a result, those with the drive and tenacity to grow a\nbusiness from scratch here in the UAE are poised to benefit considerably.\nEntrepreneurs who are able to tap into these government-led initiatives,\nprogrammers, and resources will have many options available to them.<\/p>\n\n\n\n The growing support network provided by these new\ninitiatives, and the communities they foster, will no doubt strengthen the\noverall startup ecosystem in the UAE and continue to attract entrepreneurs here\nfor years to come.<\/p>\n","protected":false},"excerpt":{"rendered":" Over the last 40 years, the UAE has successfully diversified its economy to reduce its reliance on the energy industry. As a result, the nation now offers international business opportunities across numerous sectors \u2013 from tourism to technology. The government continues with its positive efforts in this area, including an increasing number of incentives designed to attract professionals and independent business people from all over the world and support smaller enterprises. These include: Allowing 100% foreign-owned businesses Offering extended visas for entrepreneurs Attracting tech businesses to the UAE Providing funding and support for smaller businesses Creating a favorable environment for […]<\/p>\n