Doing Business In United Arabs Emirates
- What is the current business climate in your jurisdiction including major political, economic and/or legal activities on the horizon in your country that could have a big impact on businesses?
The UAE has strategically invested in sectors such as tourism, which has emerged as a cornerstone of the economy, drawing millions of international visitors annually. Additionally, the wholesale and retail trade sectors, repair services, real estate, business services, construction, and manufacturing contribute substantially to the nation's economic landscape.
The UAE is a global hub for commerce, it boasts a business landscape that is made up of the world's leading multinational organizations, many of which maintain the Emirates as their headquarters for the Middle East, Asia, and North Africa. In addition, the public and private sector continues to build a leading business ecosystem that is designed to support Small and Midsize Enterprises (SMEs) and foster a culture of innovation and entrepreneurship.
- From what countries do you see the most inbound investment? What about outbound?
The economy of the UAE has experienced significant diversification across a range of key sectors; the nation's strategic focus on multiple sectors has enabled it to establish itself as a dynamic and multifaceted economy. It is a global hub for commerce and boasts a business landscape that is made up of the world's leading multinational organizations, many of which maintain the Emirates as their headquarters for the Middle East, Asia, and North Africa. The UAE continues to innovate and flourish on the global stage and attract foreign direct investment from around the world. The top five FDI nations investing in the UAE are the United Kingdom, United States of America, France, Singapore, and Switzerland.
- In what industries/sectors are you seeing the most opportunity for foreign investment?
The Ministry of Industry & Advanced Technology has identified key sectors that will receive significant investment and support so that they can drive and develop the UAE economy for the future. These include F&B, pharmaceuticals, electronics, advanced manufacturing (3D printing), heavy industries (metals), petrochemicals & chemicals, rubber & plastics, machinery & equipment, hydrogen, media technology & space technology. All of these sectors are experiencing substantial investment, from both national businesses and foreign companies, which are leading to partnerships forming.
- What advantages and pitfalls should others know about doing business in your country?
The UAE is a global hub for commerce, it boasts a business landscape that is made up of the world's leading multinational organizations, many of which maintain the Emirates as their headquarters for the Middle East, Asia, and North Africa. In addition, the public and private sector continues to build a leading business ecosystem that is designed to support SMEs and foster a culture of innovation and entrepreneurship. The GDP growth rate for the UAE is expected to remain positive in the coming years, with an average growth rate of 4.3% for the period 2023–2028. The UAE is a stable and prosperous country with a strong economy. The government has been investing heavily in infrastructure and development, and the country is a major hub for trade and finance. The UAE is also a popular tourist destination. These factors are all contributing to the growth of the UAE economy.
- What is one cultural fact or custom about your country that others should know when doing business there?
The Emirati culture is part of the social and commercial fabric of the UAE. Cultural influences have created an environment that is harmonious and welcoming, which is rooted in Emirati hospitality. Commercially, the influence of family businesses is evident in the local economy. These businesses have a heritage that began with modest trading or being sole traders, and today they represent a modern Emirates as conglomerates that work with the world's largest brands. Family businesses have evolved their business over the years, today they have a diversified portfolio of activities and are managed and governed to international standards.
Originally published Dec 3, 2023.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
