The UAE is known to be home to one of the vastest economies in the world. It has culturally diversified traditions in business and trade, dating back to early Gulf history when its ships sailed along the coast of East Africa and Mozambique. The economy of the UAE with a gross domestic product of USD 570 billion in 2014, resulting in its being known as the second largest economy in the Arab world. In addition, the United Arab Emirates has been effectively diversifying its economy and is considered the most closely globally integrated of all the Arab economies. The UAE continues to make strides toward being one of the most successful strategic hubs, with business-friendly free zones and a vastly growing economy.
Attempts have sought to enhance the country’s business development in both local trade facilitation, as well as inflows of foreign direct investment. This is an instrumental means in achieving a balanced and sustainable development economy. Foreign trade and investment in the UAE passes strongly through the channels of many bilateral, and multilateral, cooperation agreements. Establishing a business entity for foreign investors, in one of the UAE Free Zones can also serve as an attractive option for foreign investors who benefit from 100 percent foreign ownership of the enterprise as well as a 100 percent repatriation of capital and profits. Foreign investors may also greatly benefit from personal income tax -free incentives and corporate tax exemptions for up to 50 years.
The country’s strategic location between Europe, Africa and Asia, allows the UAE to be recognized as an economically and politically stable region of the Middle East. Under the UAE law, foreign entities who are seeking in establishing a formal presence in the country, are provided with a wide variety of options for both local and foreign investments and trade in this dynamic market.