Expanding into
the UAE
The United Arab Emirates was formed as a federation in 1971 with the agreement of the seven heads of state of Dubai, Sharjah, Abu Dhabi, Fujairah, Ras Al Khaimah, Umm al-Quwain and Ajman. The UAE is a young country with a population of around 10 million, including nearly nine million expatriates. Fifty years ago, the economy of this bright star of the Middle East was based on fishing and harvesting pearls but since discovering oil, the UAE’s transformation has put them on a par with the top western European countries for GDP. The strong economy, tax-exempt free zones, a business-oriented infrastructure, and quality of life are attractions for companies expanding into the country. As with many nations, the United Arab Emirates protects its borders and workforce with strict regulations. However, it is also a welcoming country. In September 2022, changes to the Federal Decree-Law on Entry and Residence of Foreigners came into effect for visitors, potential employees, and investors to make the UAE a more accessible and attractive location.
Get the Support You Need
Global Expansion is a step to make for any business, regardless of your goal. But the opportunities that can come with an expansion can be stimulating as well as intimidating and confusing, especially when you consider all of the registration procedures that need to be done and the documentation required.
Going at it without the proper support can increase the costs, time and risks involved.
The legwork and potential red tape can be worked through more efficiently and cost-effectively with the support of a Professional Employer Organisation (PEO) such as Bradford Jacobs, primarily through our Employer of Record (EOR) framework.
It can be best utilised when businesses are just beginning their expansion process and require more information before incorporating an entity and fully establishing themselves in that market.
Hiring Staff
in the UAE
The economy of the United Arab Emirates is a high-income open economy. It is the fifth largest in the Middle East (after Iran, Saudi Arabia, Turkey, and Egypt), with a gross domestic product (GDP) of AED 1.84 trillion (USD 501 billion) in 2022. The UAE economy relies heavily on petroleum and natural gas revenues, especially in Abu Dhabi.
However, there has been economic diversification recently, particularly in Dubai. In the 1980s, Dubai’s diversification centred around trade and the creation of shipping and logistic centres, notably Port Rashid and the port and Free Zone of Jebel Ali, as well as Dubai International Airport, leading to several major global plays in shipping, transportation, and logistic. High-class tourism and international finance continue to be developed. The Dubai International Financial Centre (DIFC) offers 55% foreign ownership, no withholding tax, freehold land and office space, and a tailor-made financial regulatory system with laws taken from best practices in other leading financial centres like New York, London, Zürich and Singapore.
Dubai has also developed some Internet and Media free zones, offering 100% foreign ownership and no tax office space for the world’s leading ICT and media companies, with the latest communications infrastructure to service them. Many top worldwide companies have set up branch offices and even changed headquarters to Dubai. The recent liberalisation in the property market, allowing non-citizens to buy freehold land, has resulted in a significant boom in the construction and real estate sectors. Famous signature developments such as the 2 Palm Islands, the World (archipelago), Dubai Marina, Jumeirah Lake Towers, and many others offer villas, high-rise apartments, and office space. Nationwide, there is currently USD 350 billion worth of active construction projects.
Tourism is one of the most significant non-oil sources of revenue in the UAE. The Dubai Government created the now-famous Emirates airline in the 1980s. It is presently one of the few airlines to witness intense levels of growth. Emirates is also the largest operator of the Airbus A380 aircraft. In addition, to finding new ways of sustaining the national economy, the UAE has also made progress in installing new, sustainable methods of generating electricity. Various solar energy initiatives at Masdar City and other renewable energy developments in parts of the country evidence this.
The UAE is starting to see the emergence of local manufacturing as a new source of economic development. Strata in the aerospace industry is an example of a successful government-led investment. Small-scale entrepreneurial ventures are also picking up, such as Zarooq Motors in the automotive industry. In August 2020, the Barakah nuclear power plant, the first nuclear power plant in the Arab world, became operational.
In late 2021, it was announced that UAE’s banking assets were expected to grow between 8% and 10% in 2022 as the second-biggest Arab economy continues to recover from the covid-19 pandemic. It was also announced that the UAE’s economy might grow at a faster-than-projected rate, reaching 4.6% in 2022.
For expatriates, there is no mandatory minimum wage. For UAE nationals, the minimum wage is determined by the level of education:
No high school certificate – 3,000 AED (EUR 788 – USD 817)
High school certificate – 4,000 AED (EUR 1,051 – USD 1,089)
College degree or higher – 5,000 AED (EUR 1,314 – USD 1,361)
As there is no tax in the UAE, the government does not issue TINs but Tax Residency Certificates (TRCs) upon application of an eligible individual or entity, based on the applicable Double Taxation Treaty.
The UAE introduced a Value Added Tax on 1 January 2018 but the VAT numbers issued do not correspond with the classification of TINs
Main Imports partners (2019): China (15%), India (12%), and the United States (7%).
Main Exports Partners (2019): India (11%), Japan (10%), Saudi Arabia (7%), Switzerland (6%), China (6%), and Iraq (6%).
Hiring Staff
in the UAE
However, there has been economic diversification recently, particularly in Dubai. In the 1980s, Dubai’s diversification centred around trade and the creation of shipping and logistic centres, notably Port Rashid and the port and Free Zone of Jebel Ali, as well as Dubai International Airport, leading to several major global plays in shipping, transportation, and logistic. High-class tourism and international finance continue to be developed. The Dubai International Financial Centre (DIFC) offers 55% foreign ownership, no withholding tax, freehold land and office space, and a tailor-made financial regulatory system with laws taken from best practices in other leading financial centres like New York, London, Zürich and Singapore.
Dubai has also developed some Internet and Media free zones, offering 100% foreign ownership and no tax office space for the world’s leading ICT and media companies, with the latest communications infrastructure to service them. Many top worldwide companies have set up branch offices and even changed headquarters to Dubai. The recent liberalisation in the property market, allowing non-citizens to buy freehold land, has resulted in a significant boom in the construction and real estate sectors. Famous signature developments such as the 2 Palm Islands, the World (archipelago), Dubai Marina, Jumeirah Lake Towers, and many others offer villas, high-rise apartments, and office space. Nationwide, there is currently USD 350 billion worth of active construction projects.
Tourism is one of the most significant non-oil sources of revenue in the UAE. The Dubai Government created the now-famous Emirates airline in the 1980s. It is presently one of the few airlines to witness intense levels of growth. Emirates is also the largest operator of the Airbus A380 aircraft. In addition, to finding new ways of sustaining the national economy, the UAE has also made progress in installing new, sustainable methods of generating electricity. Various solar energy initiatives at Masdar City and other renewable energy developments in parts of the country evidence this.
The UAE is starting to see the emergence of local manufacturing as a new source of economic development. Strata in the aerospace industry is an example of a successful government-led investment. Small-scale entrepreneurial ventures are also picking up, such as Zarooq Motors in the automotive industry. In August 2020, the Barakah nuclear power plant, the first nuclear power plant in the Arab world, became operational.
In late 2021, it was announced that UAE’s banking assets were expected to grow between 8% and 10% in 2022 as the second-biggest Arab economy continues to recover from the covid-19 pandemic. It was also announced that the UAE’s economy might grow at a faster-than-projected rate, reaching 4.6% in 2022.
For expatriates, there is no mandatory minimum wage. For UAE nationals, the minimum wage is determined by the level of education:
No high school certificate – 3,000 AED (EUR 788 – USD 817)
High school certificate – 4,000 AED (EUR 1,051 – USD 1,089)
College degree or higher – 5,000 AED (EUR 1,314 – USD 1,361)
As there is no tax in the UAE, the government does not issue TINs but Tax Residency Certificates (TRCs) upon application of an eligible individual or entity, based on the applicable Double Taxation Treaty.
The UAE introduced a Value Added Tax on 1 January 2018 but the VAT numbers issued do not correspond with the classification of TINs.
Main Imports partners (2019): China (15%), India (12%), and the United States (7%).
Main Exports Partners (2019): India (11%), Japan (10%), Saudi Arabia (7%), Switzerland (6%), China (6%), and Iraq (6%).
The Main Sectors of the Emirati Economy
The country focuses on the following key sectors, which all have a significant impact on the country’s economy:
The Main Sectors of the Emirati Economy
The country focuses on the following key sectors, which all have a significant impact on the country’s economy:
Commercial Laws in
the UAE
Commercial Laws in
the UAE
