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Successfully investing in the United Arab Emirates

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last updated on 27 May 2020 | reading time approx. 2 minutes

 

 

 

How do you assess the current economic situation in the UAE?

The United Arab Emirates (hereinafter UAE) continue to show enormous growth potential. This may surely be attributable to the investment-friendly climate in the UAE and the continuous striving to implement new projects.

 

The Emirate of Dubai, which is not directly dependent on the oil sector, particularly continues to show a high level of foreign investments, since the local market has been strongly diversified and the service sectors has significantly expanded in recent years.
 

How would you describe the investment climate in the UAE? Which sectors offer the largest potential?

The existing factual tax exemption which applies on the territory of the UAE as well as the individual free trade zones continues to be a huge incentive for foreign investors. The foreseeable implementation of an income tax should not change this economic development. Various free zones announced a 50-year exemption from any kind of income tax starting with the set-up of the individual establishment.

 

Dubai continuously established itself as a central hub for investments in the Middle East and African areas. Industries like hospitality, health care, constructions, renewable energy and waste management have great potential.

  

What challenges do German companies face during their business ventures into the UAE?

German companies are able to enter the local market in many ways. In order to get a feeling for the market situation in a cost and time-effective way, it may be beneficial to cooperate with a commercial agency. In order to represent the company and their products or services to the customers the set-up of a “Representative Office” can be suggested. A Joint Venture can be advantageous in order to benefit from the business partners network and experience in the market.

 

The main challenge which German companies have to face when setting up their own business lies in the different legal and formal requirements in UAE mainland and the free trade zones; further also the time and cost-consuming procedure of business set-ups.

 

Germany and the UAE collaborate closely in the area of renewable energies. What opportunities does this present for investors?

The United Arab Emirates play a pioneering role in the Middle East by combining Western and Oriental culture. There might be no other country in the world, where people of different origins and cultures live and work together in such a peaceful way.
 

In your opinion, how will the UAE develop?

The United Arab Emirates are a promising future market and economy. They propose great potential for German investors, especially for the energy sector, due to the fact that the United Arab Emirates aim to achieve a leading position in the area of low-emission technologies (also as part of their Energy Strategy 2050).

 

However, for business sectors such as hospitality, constructions and the health care sector, it is to be expected, that the UAE government will release even more measures and strategies to attract foreign investors and their plans to enter the local market.

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