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Successfully investing in the United Arab Emirates

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last updated on 19 May 2021 | reading time approx. 2 minutes

 

 

 

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

The United Arab Emirates (UAE) is constantly striving to create an investor-friendly climate through new, business-promoting projects. In principle, and despite the Corona crisis, they show a steady growth potential.

To defy the Corona crisis, the state has taken very consistent measures. The Central Bank of the UAE has launched a so-called “Economic Stimulus” package of 16 bio. Dirham to support the national economy and ensure economic continuity in the Emirates.

The Emirate of Dubai is generally very investor-friendly as it is not directly dependent on the oil sector and the local market is highly diversified. New visa facilitations and the new investment law show the government's effort to attract new investors to the country and the market in the future and make it easier for them to enter the market.
 

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

The existing de facto tax exemption in the national territory of the Emirates, as well as its neighbouring states, and in the individual free trade zones, continues to offer a great incentive for foreign investors. This is supported by the new Investment Law of 2018. A foreseeable introduction of a corporate income tax will in all likelihood not change this either.

The government recently launched a strategic package worth 30 bio. Dirham to finance more than 13,500 SMEs and create more than 25,000 jobs. As a result, the industrial and creative sectors in particular hold great potential, in addition to the fundamentally interesting sectors such as finance, logistics and real estate.

  

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

German companies can enter the local market in many ways. New visa facilitations currently simplify that. In order to get a feel for the market situation in a cost- and time-effective way, it can be advantageous to cooperate with a commercial agent.

However, this is no longer absolutely necessary. In order to present or promote a company and its products or services, it may be advisable to set up a “representative office”. A joint venture can be a promising way to benefit from the network of business partners and experience in the market.

 

How does the UAE differ from its neighboring countries?

The United Arab Emirates play a pioneering role in the Middle East when it comes to combining western and oriental culture. It would be hard to find another place in the world where people from the most diverse backgrounds and cultures live and work together peacefully in a comparable way.

The UAE also bears this pioneering role from an economic perspective. For example, Saudi Arabia is following the Emirates with the establishment of free trade zones, a new investment law, and new visa opportunities for foreign investors, employees and employers, as well as tourists.
 

In your opinion, how will the UAE develop?

The United Arab Emirates is a promising future market, especially for foreign investors. The government of the Emirates is constantly striving to strengthen the economic development and to make market entry attractive for foreign investors.

The energy sector continues to offer good investment opportunities – also thanks to the Energy Strategy 2050, as does the digitalisation sector, for whose further development the state has introduced the so-called UAE National Programme for Digitalisation.

The recently launched “Operation 300bn” to support the industrial sector as well as Dubai's strategy to strengthen the creative sector is also attracting foreign investment.

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