Foreign Investments in Dubai
Foreign Investments in DubaiUpdated on Friday 31st January 2020
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Dubai is a starting point for numerous investors who want to establish their activities and make money in a fast manner, as the city is known for its rapid development in varied sectors. The metropolis is considered a major business hub, an attractive destination for FDIs, due to its numerous benefits from which we remind, the well-made infrastructure, the developed tourism, the top technology implemented in varied areas, the growing import and export sectors. The legislation regarding the foreign direct investments is permissible in Dubai and open to all entrepreneurs who can benefit from numerous advantages. If you are interested in making investments in Dubai, we remind that our lawyers in Dubai can provide you with details and information about the legislation in this matter and the opportunities suitable for your needs.
The positive trend for foreign direct investments in Dubai is the most notable proof that the city is a major hub for development and business. Investor confidence guarantees that Dubai will maintain its future economic development. Foreign direct investment in Dubai has more than economic advantages and it brings some of the following benefits to the Emirate:
• increased trade flows - with the help of multinational companies that create new opportunities for exports and create new trade relations;
• increased business opportunities – market expansion;
• job creation – an important number of new jobs are created as a result of FDI in Dubai;
• knowledge transfer – the Emirate is seeing the newest technological advances.
Free investment zones
Dubai offers good infrastructure and logistics as well as strategic sectors for investments. The quality of life index is the highest for Dubai among all of the Middle Eastern cities. Dubai has a large number of free trade zones, special areas that are tax-free and customs duty-free for foreign investors. The free zones are governed by special rules and regulations and if you want to invest in one of the free zones, our attorneys in Dubai can help you pick the right one for your business. Moreover, our Dubai lawyers can help you prepare a special power of attorney to delegate the company incorporation procedure to one of our attorneys-at-law or another trusted partner.
Some of the most important free trade zones in Dubai are Jebel Ali, the Dubai Media City, the International Media Production Zone, the Dubai Biotechnology and Research Park, the Healthcare City, the Maritime City, the Airport Free Zone, the Cars and Automotive Zone, the Sports City or the Design District.
Legislation related to foreign investments in Dubai
Even if the UAE shares no particular legislation regarding the foreign direct investments in the country, each Emirate, including Dubai has implemented several regulations in accordance with the rights imposed on the international market. Instead of specific laws, the Emirates have enabled a permissive system for all investors interested in directing their finances in the country. For instance, any entrepreneur who wants to register a company in Dubai Free Trade Zone can have 100% ownership, no corporate or profit taxes, and can repatriate the incomes in the home country without an established limit in this matter. Besides that, the UAE has signed numerous double taxation agreements with countries worldwide with the purpose of avoiding the fiscal evasion and of course the double taxation on profits or other incomes. According to the revised Commercial Law in the UAE, each limited liability company does not need a particular number of stockholders. Additional details in this matter can be obtained from our attorneys in Dubai who can also help you obtain the EORI number or trading activities in EU.
Why make investments in Dubai?
Besides the benefits of permissive rules and regulations regarding the FDI, Dubai is the business hub with a wide range of opportunities, no matter if you are a young entrepreneur or an investor with experience. According to statistics, about AED 26 billion represented the FDI registered in Dubai last year, placing the city on the seventh place among rich and developed cities worldwide. With more than 200 investment projects, Dubai successfully reaffirmed, if it was necessary, its strategical and important position among preferred destination for foreign investments. Furthermore, more 70% of the FDI in Dubai represented IT projects which were successfully implemented in numerous important sectors.
Once you have decided to invest in the Emirates and you need legal counseling in this matter, please feel free to contact our law firm in Dubai.