Why Dubai ?

The United Arab Emirates are a unique combination of fast-growing economy, comfort, high quality lifestyle and safety. United Arab Emirates authorities professionally establish a sound reputation of the country as the global business hub, where it is prestigious to have a holiday and where living and working is deemed prestigious, favorable and comfortable. The United Arab Emirates are a unique spot for doing business and having a holiday.

UAE Business Climate

Doing business in the UAE is very attractive due to the following reasons

• No personal income and capital taxes
• No corporate taxation
• 100% repatriation of capital and profits
• No currency restrictions
• Competitive import duties (5% with many exemptions).
• Modern efficient communication facilities
• Abundant and inexpensive energy supply
• Simple staff recruitment procedures
• Competitive freight charges
• Competitive real estate costs.
• Easy access to both sea and airports.


There is no corporate tax or personal tax in the UAE. The only exceptions to this are oil producing companies and branches of foreign banks. Direct taxation is against the traditions of the UAE and it is highly unlikely that it will be introduced in the near future.

The Market

UAE is the leading regional trading hub; it offers access to a market of outstanding potential for overseas companies. Among its key characteristics are:

• A growing market - UAE’s imports have more than doubled since 1989; regional economic growth and liberalisation is set to boost demand.
• A prosperous market - strategic location at the heart of one of the world’s richest regions.
• A diversified market - wide import requirements; opportunities for suppliers of most products.
• An accessible market - served by more than 170 shipping lines and 86 airlines; An open market - no exchange controls, quotas or trade barriers.

The Business Environment

UAE offers incoming businesses all the advantages of a highly developed economy. The infrastructure and services match the highest international standards, facilitating efficiency, quality and service. Among the benefits are:

• Free enterprise system.
• Highly developed transport infrastructure.
• State-of-the-art telecommunications.
• Sophisticated financial and services sector.
• Top international exhibition and conference venue.
• High quality office and residential accommodation.
• Reliable power, utilities etc.
• First class hotels, hospitals, schools, shops etc. Cosmopolitan lifestyle.

Currency and Exchange rate

There are no exchange controls in the UAE and its currency, the UAE Dirham, is freely convertible. The Dirham is linked to the US dollar, the currency by which oil prices are measured. The exchange rate has remained at Dh 3.675 = US$ 1 since 1977.


The UAE Commercial Company Law recognizes the following major forms of companies in the UAE:

- Limited Liabilities Companies
- Branch Offices
- Representative Offices
- Free Zone Companies
- Offshore Companies

The basic requirement for all business activity in UAE is one of the following three categories of licenses:

• Commercial licenses covering all kinds of trading activity.
• Professional licenses covering professions, services, craftsmen and artisans.
• Industrial licenses for establishing industrial or manufacturing activity.

Some categories of businesses require approval from ministries also: for example, banks and financial institutions from the Central Bank of the UAE; manufacturing from the Ministry of Finance and Industry; and pharmaceutical and medical products from the Ministry of Health; branch of foreign company from the ministry of Economy and Commerce. More detailed procedures apply to businesses engaged in oil or gas production and related industries.

Ownership Requirements

Fifty-one per cent participation by UAE nationals is the general requirement for all UAE established companies except:

• Where the law requires 100% local ownership.
• In the Free Trade Zones where 100% foreign ownership is permitted.
• In activities open to 100% AGCC ownership.
• Where wholly owned AGCC companies enter into partnership with UAE nationals.
• In respect of foreign companies registering branches or a representative office in Dubai.
• In professional or artisan companies where 100% foreign ownership is permitted.