The United Arab Emirates, being the world’s first ever paperless government, has established itself as a global business hub, and all kudos to its strategic location, world-class infrastructure, and investor-friendly policies. Over the years, the emirate government has launched several initiatives to foster business development and attract international investments. UAE.
Let us talk about some of the key initiatives up until 2024 in brief:
The UAE Vision 2021 was a national agenda launched in 2010 with the aim of making the UAE one of the best countries in the world by its 50th anniversary in 2021. This vision focused on various aspects, including economic development, which laid the groundwork for subsequent initiatives to boost business and economic growth. Key elements included enhancing the UAE’s business environment, fostering innovation, and promoting sustainable economic growth.
The UAE is renowned for its free zones, which offer businesses 100% foreign ownership, tax exemptions, and full repatriation of profits. These zones are tailored to specific industries, such as Dubai Media City, Dubai Internet City, and the Jebel Ali Free Zone. Each zone provides state-of-the-art infrastructure and streamlines regulatory procedures to attract global enterprises. The Abu Dhabi Global Market and Dubai International Financial Center are notable examples, specifically catering to financial services.
Introduced in 2019, the economic substance regulations require businesses engaged in certain activities to demonstrate substantial economic presence in the UAE. This initiative aims to align with global tax standards and enhance the transparency of business operations, thereby attracting legitimate business activities and discouraging harmful tax practices.
Launched in 2019, the Golden Visa program grants long-term residency to investors, entrepreneurs, and highly skilled professionals. This initiative is designed to attract and retain talent, encouraging business owners and innovators to establish and expand their operations in the UAE. The program offers visas for up to 10 years, providing stability and confidence for long-term business planning.
The Dubai Future Accelerators program connects innovative companies with government entities to address pressing challenges through technology and innovation. This initiative provides a platform for startups and established businesses to collaborate with the government on pilot projects, fostering an environment of experimentation and rapid prototyping.
The UAE’s National Innovation Strategy aims to make the nation one of the most innovative in the world. This strategy focuses on fostering innovation across various sectors, including renewable energy, transport, education, health, technology, and space. By encouraging research and development, the UAE aims to create new business opportunities and drive economic growth.
The UAE government has been a pioneer in adopting digital technologies to enhance public services and the business environment. Initiatives like Smart Dubai and the UAE Strategy for Artificial Intelligence aim to integrate AI and digital solutions across government and business operations. This digital transformation creates a conducive environment for tech startups and innovative enterprises to thrive.
Although postponed to 2021 due to the COVID-19 pandemic, Expo 2020 Dubai has been a significant initiative to showcase the UAE’s business potential on a global stage. The expo provided a platform for international collaboration, business networking, and investment opportunities, highlighting the UAE’s commitment to economic development and global integration.
The UAE has aligned its national policies with the United Nations Sustainable Development Goals, focusing on sustainable economic growth, environmental protection, and social inclusion. Initiatives such as the UAE Green Agenda and the Energy Strategy 2050 promote sustainable business practices and investment in renewable energy, contributing to long-term economic resilience.
The backbone of the UAE economy is the Small and Medium-sized Enterprises. The government has introduced various support measures, including funding programs, incubators, and mentorship initiatives, to help SMEs grow and thrive. The Khalifa Fund for Enterprise Development and Dubai SME are notable entities providing comprehensive support to entrepreneurs and small businesses.
Visas and Business Ownership Initiatives by the UAE Government
The UAE has established itself as one of the most investor-friendly countries in the world through visionary policies and regulations designed to attract foreign businesses and talent.
One of the most significant initiatives is allowing 100% foreign ownership of commercial companies. Federal Decree-Law No. 26 of 2020 amended the previous law, removing the requirement for a major Emirati stakeholder or agent. This change allows non-Emiratis full ownership of onshore companies, creating a more attractive environment for foreign investors. Companies seeking to become joint stock companies can now sell up to 70% through IPOs, up from the previous limit of 30%.
Local authorities have been granted powers to set a specific percentage of Emiratis in capital allocation and company boards, approve company establishment requests, and set fees according to UAE Cabinet policies. This law, enacted in November 2020, also means that foreign companies opening branches in the UAE no longer need a UAE national agent.
The UAE boasts over 40 free zones, offering foreign investors tax breaks and 100% ownership. These zones provide flexibility for businesses to choose the most suitable locations and offer a variety of economic activities across sectors like trade, agriculture, health, education, and construction. With more than 2,000 licensed economic activities, free zones cater to a wide range of business interests.
Investors must specify the value of capital in company documents, but there is no minimum capital requirement for limited liability companies. This flexibility facilitates the incorporation of companies and the establishment of new businesses, allowing investors to plan their projects more freely.
Except for oil companies and branches of foreign banks, the UAE does not impose an income tax on individuals, investors, or companies. This allows for the free and full repatriation of profits, making the UAE an even more attractive destination for business.
In summary, the UAE’s progressive policies on business ownership and visas, along with its numerous free zones and favorable tax regulations, create a highly appealing environment for foreign investors and businesses.
Startup Incubators in Dubai’s Macroeconomic Strategy
Dubai’s macroeconomic strategy includes various initiatives to support startups and entrepreneurs, showcasing the government’s commitment to fostering innovation and economic growth.
In5 is an incubator that uses a five-stage approach—Strategy, Validation, Presentation, Incubation, and Traction—to support startups from their inception to securing investments. It provides resources and networking opportunities essential for business development.
Good-force Labs, located in the Dubai Airport Free Zone, focuses on sustainable development in sectors like education, finance, food, agriculture, and lifestyle. It connects entrepreneurs with experienced mentors to drive innovation and growth.
Bedayat, launched in 2019, aims to develop SMEs in collaboration with sustainable cities. It offers training and opportunities for entrepreneurs to meet business experts, aiding in the research and testing of products and services before market launch.
Dubai’s government provides extensive support for tech entrepreneurs through various incubators and accelerators. Let us know about those in brief:
On a concluding note, the UAE government has demonstrated a proactive approach to business development through a combination of visionary policies, strategic initiatives, and targeted support programs. By fostering innovation, ensuring economic stability, and creating a business-friendly environment, the UAE continues to attract global enterprises and remains a leading destination for business and investment. As the nation looks towards the future, these initiatives will play a crucial role in sustaining economic growth and diversification, ensuring the UAE’s position as a global business hub.
