UAE investment incentives

Source: United Arab Emirates Ministry of Economy

Multiple incentives have been put forward to boost the expansion of startups and small and medium enterprises (SMEs), effectively diversifying the national income sources.

100% company ownership
Investors of all nationalities can establish and fully own companies in the UAE. This change came about following the enactment of the Commercial Companies Law in 2020, according to which a foreign company wishing to open a branch and practice its activities in the UAE does not require the presence of a UAE national agent.

40 Free Zones for company incorporation
More than 40 free zones allow tax exemptions and 100% ownership for foreign investors. The UAE also provides these investors great flexibility in selecting the most appropriate zones for establishing their businesses. Free zones are located throughout the UAE, allowing investors to engage in a wide variety of economic businesses and activities.

Investing in all economic activities
Foreign investors can invest in the trade, industry, agriculture, services, education, health and construction along with several other sectors across the UAE. There are more than 2,000 licensed economic activities, with local laws excluding only a very limited number of domains.

Various forms of legal ownerships
In light of the enactment of Federal Law No. (26) of 2020 on Commercial Companies, foreign investors are allowed various forms of legal ownership such as public shareholding companies, private shareholding companies, limited liability companies, limited partnerships, and partnership companies.

No requirement for national agents
The UAE Commercial Companies Law does not require foreign companies wishing to open a branch and practice their business in the UAE to have a local national sponsor/agent, giving a strategic advantage to foreign companies and enhancing the ease and transparency of doing business in the country.

Control of shareholding company boards
The Chairman and a majority of the board of joint stock companies are not required to be UAE Nationals, pursuant to the UAE Commercial Companies Law, giving foreign investors the right to fully control their shares in companies, unless any decree or resolution stipulates otherwise.

No minimum capital
The UAE law directs investors to specify the value of capital in articles of incorporation and company statutes but does not require a minimum amount for limited liability companies. This greatly facilitates the incorporation of companies and the establishment of new businesses, while giving investors additional flexibility in planning their projects.

No income tax and full profit transfer
The UAE does not impose income tax on individuals, investors or corporates, with the exception of oil companies and branches of foreign banks. As a country with a free economy model since inception, it allows individuals and investors to freely repatriate their profits in entirety.

Golden Visa for investors
The UAE grants long-term residence visas, for durations that extend from 5 to 10 years, to investors, entrepreneurs, and talented individuals. This allows expatriates and their family members wishing to live, work or study in the UAE to settle, establish their businesses, and enjoy the benefits of extended residency.

Ease of commissioning professionals
The UAE is looked upon as an incubator for skilled workers, human capital and talented professionals in vital and economic sectors, due to its flexible labour policies and ease of attracting foreign labour. The ever-growing business sector in the UAE nurtures highly skilled individuals in various disciplines.

Low customs tariffs
Low customs tariffs have contributed to cementing the status of the UAE as a trade hub. Government tariffs in the country range from 0% to 5%. Thereby, the UAE leads global and regional trade, ranking 3rd worldwide, and 1st in the Arab world in the arena of re-exporting.

Benefits for the industrial sector
The UAE offers a package of competitive incentives to support investments in industrial and technology companies that are working in strategic sectors. In partnership with the Emirates Development Bank, those incentives offer competitive financing facilities for priority industries and advanced technology sectors, competitive tariff for energy sectors, customs exemption on investments and production inputs for the industrial sector, such as machinery and raw materials, in addition to the “In-Country Value (ICV) Program” and the “Make it in the Emirates” programme to unify the identity of the local industry, and other incentives provided to the industrial sector.

Benefits for the industrial sector

The UAE offers a package of competitive incentives to support investments in industrial and technology companies that are working in strategic sectors. In partnership with the Emirates Development Bank, those incentives offer competitive financing facilities for priority industries and advanced technology sectors, competitive tariff for energy sectors, customs exemption on investments and production inputs for the industrial sector, such as machinery and raw materials, in addition to the “In-Country Value (ICV) Program” and the “Make it in the Emirates” programme to unify the identity of the local industry, and other incentives provided to the industrial sector.

Source: Investment Incentives – Ministry of Economy UAE