The UAE is a prime investment destination for foreign investors. In this article, in collaboration with Etqan, a business and consulting firm, we will explore the foreign investment opportunities in the UAE and the benefits that can be gained from them.

We will review local legislation and policies that promote foreign investment and provide investor protection. We will highlight key sectors that are attractive to foreign investment, such as real estate, tourism, energy, technology, and innovative industries.

We will provide a comprehensive overview of the economic and business environment in the UAE and what makes it a preferred destination for investment. We will also review the incentives and privileges available to foreign investors, such as free investments, tax facilities and flexible legislation.

With the expertise and specialized consultancy of Etqan, we will provide valuable guidance and advice to foreign investors who are interested in BInvesting in the UAEThis article will be a comprehensive guide highlighting the opportunities, challenges and requirements for foreign investment in this dynamic and prosperous country.

Foreign investment in the UAE

Foreign investment in the UAE is a key driver of economic development and the realization of the national vision to transform the economy into a diversified and sustainable one. The UAE offers an investment environment full of opportunities, supported by advanced infrastructure and government policies open to business and investment. Key sectors attracting Foreign investment It includes real estate, tourism and hospitality, energy, technology, manufacturing, and financial and banking services. The UAE also features a government policy aimed at encouraging diversification of sources of income, developing innovation and technology, and building global strategic partnerships to boost the economy, provide job opportunities, and improve the standard of living.

Licenses required for foreign investors to start their business in the UAE

For foreign investors wishing to start their business in the UAE, several licenses and permits are required depending on the type of business activity and the location where they wish to operate. Here is a general list of the licenses required:

1. Commercial Register Declaration: The commercial registration permit is the first and essential step in establishing any commercial activity in the UAE. The company is registered with the competent authorities in the emirate chosen by the establishment.
2. Work Permit: Foreign investors need a work permit for foreign employees and partners working in the company.
3. Residence permit: Foreign investors must obtain a residence permit to legally reside in the UAE while conducting their business.
4. Business License: Foreign investors must obtain a license to practice their specific business activity, which is done through the local authorities in the emirate.
5. Construction and Operation Permit: If the investor intends to build or lease a building for his business headquarters, he may need a building and operation permit from the relevant authorities.
6. Municipality and Environment Permits: Some businesses may require additional permits from local authorities and environmental agencies.
7. Health and Safety License: Some businesses may require a special health and safety license from the relevant health authorities.
8. Tax declaration: Foreign investors must register for taxes and comply with the periodic filing of tax returns.

Taxes imposed on foreign investment in the UAE

In the UAE, there is a flexible and simplified tax system that attracts foreign investors, which is characterized by the absence of personal and corporate income taxes in most sectors. However, there are some taxes that foreign investors must comply with:

• Value Added Tax (VAT): Value Added Tax (VAT) was introduced in the UAE starting in 2018, and is levied on most goods and services at a rate of 5%.
• Infrastructure (rental) tax: A tax is imposed on the infrastructure of public utilities and services such as water, electricity and communications, which is collected through monthly bills.
• Tax on oil and gas profits: This tax is imposed on companies operating in the oil and gas sector, and is calculated as a percentage of revenues.
• Real estate tax: Owners are required to pay a property tax based on the value of the property and is classified as a local tax.

Foreign investment conditions in the UAE

The conditions for foreign investment in the UAE vary depending on the type of investment activity and the sector in which one wishes to invest. However, there are some general conditions that may apply:

1. Local partnership: In some sectors, legal requirements may require a local resident partner to own a certain percentage of the company, and this is regulated by local company law.
2. Licenses and Permits: Some investment activities may require obtaining licenses and permits from local authorities and relevant government agencies before starting work.
3. Compliance with local laws and regulations: Foreign investors must comply with local and federal laws and regulations in the UAE, which include labor, trade, tax, security and safety laws.
4. Real estate ownership: In some cases, real estate investments may require the foreign investor to have a permit to own real estate from the relevant authorities.
5. Commitment to government partnership terms: In some cases, investments in vital or strategic sectors may require partnership with the government or government-owned companies.
6. Obtaining security clearances: Some investment activities may require obtaining security permits from the relevant authorities.

The most attractive investment sectors in the UAE

The United Arab Emirates is one of the most prominent investment destinations in the world, as it enjoys an advanced and favorable investment environment that attracts investors from all over the world. The Emirates is characterized by great economic diversity and advanced infrastructure, which provides wide-ranging investment opportunities in several different economic sectors. Sectors The most attractive investment in the Emirates:

1. Real Estate and Infrastructure: The real estate and infrastructure sectors are among the most attractive sectors in the UAE, providing opportunities for investment in residential, commercial and tourism projects, in addition to vital facilities such as airports, ports and road networks.
2. Energy and petroleum: The UAE derives a large part of its economy from the oil and gas industry, which provides opportunities for investment in the fields of exploration, production and petroleum technology.
3. Technology and Innovation: The UAE seeks to achieve economic diversification by enhancing the technology and innovation sector, and providing a suitable environment for start-ups and major technology companies.
4. Tourism and Hospitality: Tourism and hospitality are important sectors of the UAE economy, attracting millions of visitors annually and providing investment opportunities in hotels, resorts, restaurants and entertainment.
5. Trade and Logistics: Due to its strategic location, the UAE is a major commercial hub for trade and logistics, providing investment opportunities in the fields of shipping, distribution, and e-commerce.
6. Advanced industrial industries: The UAE aims to diversify its economy by developing advanced industries such as aerospace, defence and maritime industries.
7. Education and training: The UAE is witnessing continuous growth in the education and training sector, providing opportunities for investment in private schools, universities, and vocational training centers.

Facilities provided to foreign investors in the UAE

Foreign investors in the UAE can benefit from several facilities and incentives aimed at attracting foreign investments and enhancing the business environment. These facilities include:

1. Flexible laws and regulations: The UAE has a flexible and modern legislative environment that allows for easy establishment and operation of companies, providing foreign investors with a favourable legal framework.
2. Customs facilities: The UAE offers customs benefits such as no customs duties on imports and exports in free zones and special economic zones.
3. Advanced infrastructure: The UAE has an advanced infrastructure that includes ports, airports and advanced transportation networks, which facilitates transportation and export operations and reduces production costs.
4. Financial and tax facilities: The UAE offers financial incentive programmes such as tax incentives and tax exemptions for companies in certain sectors and special economic zones.
5. Access to regional and international markets: The UAE is strategically located with easy access to the markets of the Middle East, Africa and Asia, making it a hub for global trade.
6. Stable economic environment: The UAE has a stable economic environment and strong financial institutions that contribute to attracting foreign investment.

Reasons for foreign investment in the UAE

The United Arab Emirates is considered one of the most prominent investment destinations in the world, as it enjoys a stable economic environment, strong institutions and flexible legislation that attract foreign investors from all over the world. This attraction is attributed to several diverse factors that make the Emirates a preferred destination for foreign investment. In this context, we will review some of the most important reasons for foreign investment in the Emirates:

• Political and economic stability: The UAE enjoys a stable political and economic environment, which creates a favorable environment for investment and business development.
• Advanced infrastructure: The UAE has an advanced and integrated infrastructure in the fields of transportation, communications, energy and technology, which attracts investments in various sectors.
• Government facilities: The UAE government offers a range of facilities and incentives to foreign investors, such as tax exemptions and simplified bureaucratic procedures.
• Educated and multinational workforce: The UAE offers an educated and multinational workforce, making it easy to manage businesses and diversify experiences and skills.
• Strong banking and financial sector: The UAE has advanced and reliable banks and financial institutions, providing a stable financial environment and sufficient financing resources for investment projects.
• Access to regional and global markets: Thanks to its strategic location, the UAE provides access to the markets of the Middle East, North Africa and Asia, and is considered a center for trade and distribution.

At the end of the article, we find that Foreign investment In the UAE, it is considered a vital element in promoting economic development and achieving the country’s economic vision. In cooperation with Itqan Company, the role of the private and government sectors is evident in providing a favorable and stimulating investment environment. The UAE also offers advanced infrastructure, modern laws, and tax facilities, and targets the development of vital sectors such as technology and renewable energy. With continued investment and development efforts, the UAE is expected to remain a preferred destination for foreign investment in the long term.

Frequently asked questions about foreign investment in the Emirates