The United Arab Emirates is a thriving economy which boasts billions of dollars in circulation. Doing business in these countries are as easy as or maybe easier than starting up a business in other countries due to its flexible systems and free trade zones. There are over 22 free zones within the UAE and are home to over 10 000 national and multinational companies. These have had a significant impact on the growth of the economy and each sector of the emirates has thus benefited from these free zones.
Benefits of UAE
The main advantage of starting up a company in the UAE other than the obvious economy are the 22 free zones which allow for 100% foreign ownership, repatriation of profits and capital, exemption from export and import duties and also 100% free fund transfer, making it a haven for multinational corporations looking to do business with the middle east. Also, Dubai freezone company setup and ajman free zone business setup, or company formation in free zones as a whole is much faster than company formation in other parts of the UAE. There is also a large workforce which can be easily recruited with minimal recruitment costs to the company. This is also an inexpensive work force and thus, ideal for large companies and factory setup. There are also vast land areas available in the different free zones and thus, with the twenty five year lease options on the market, these are ideal for factory or warehousing facilities.
Also, in places such as Dubai, there are specialized free zones as the Dubai Airport Free Zone, Internet City, Media City, Investment Park, Metal and Commodities Center and the Silicon Oasis. These offer further benefits and leaner regulations for the companies to operate around while becoming a specialized sector thus increasing competition and pushing forward the different sectors to move up to their maximum potential, thereby bringing in further economic development to the country. Other free zones include the Jebel Ali free zone, Sharjah Airport international Free Zone,Ras Al Khaimah free trade zone, Hamriya Free Zone in Sharjah and the Fujairah free zone.
However, as everything has it, there are drawbacks in operating within the free zones of UAE, mainly being that those companies cannot directly trade with the outside UAE market. When dealing with the local markets, a company needs to operate via a local distributor and pay a 5% custom duty. Also, employees are expected to live on free zone company offices and not outside of the free zones.