FAQ

General information

Legal and regulatory framework

Investment opportunities

Setting up a business

Financial aspects

Employment and labour laws

Support and resources

Living in the UAE

Is the UAE investor-friendly?

The UAE is highly investor friendly, offering a dynamic and diversified market with competitive costs, world-class infrastructure, and a robust regulatory framework.

How safe is it to invest in each one of the seven emirates? What is the difference?

Investment safety in the UAE is consistently ranked highly, with each emirate offering unique opportunities. Abu Dhabi in energy, Dubai excels in trade and finance, Sharjah in cultural industries, Ajman in light manufacturing, Umm Al Quwain in food processing, Ras Al Khaimah in industrial development and Fujairah in shipping and logistics. All these emirates operate under a stable investment environment.

What does the UAE do to assist foreign investors and businesses?

The UAE assists foreign investors through incentives such as zero taxation on personal and corporate income, 100% foreign ownership in free zones, and comprehensive support services for business setup and operation.

What are the primary investment sectors in the UAE for foreign investors?

The primary investment sectors for foreign investors in the UAE include real estate, renewable energy, technology, tourism, manufacturing and healthcare.

Are there any restrictions on foreign ownership in the UAE?

While foreign ownership outside of free zones historically had a restriction of 49%, recent changes now allow for 100% foreign ownership in many sectors. However, certain strategic areas still require local partnerships.

What is the legal framework governing foreign investments in the UAE?

The legal framework governing foreign investments in the UAE is comprehensive. It includes Federal Law No. 19 of 2018 on Foreign Direct Investment (FDI Law), which allows for up to 100% foreign ownership in specific sectors and provides a transparent outline for foreign investment operations.

Are there any specific laws foreign investors should be aware of?

Foreign investors should be particularly aware of the UAE Commercial Companies Law, the Anti-Money Laundering laws, and sector-specific regulations such as those for real estate, finance, and healthcare.

How does the UAE protect foreign investments?

The UAE protects foreign investments by ensuring the rule of law, providing legal protections against expropriation, offering dispute resolution mechanisms through arbitration and specialised courts, and maintaining bilateral investment treaties with numerous countries to safeguard investments.

What are the tax implications for foreign investments in the UAE?

The tax implications for foreign investments in the UAE are favourable. There are no federal taxes on personal income or capital gains and a low VAT rate. However, foreign investors should consult about taxes in free zones and on international transactions.

What are the current priority sectors for foreign investment in the UAE?

The current priority sectors for foreign investment in the UAE include renewable energy, technology and communications, aerospace, healthcare, and education. There is also a growing focus on sustainability and innovation.

How can foreign investors identify investment opportunities in the UAE?

Foreign investors can identify investment opportunities in the UAE by consulting with the UAE Ministry of Economy, utilising the services of various free zone authorities, attending industry-specific trade shows and business summits, and accessing resources provided by the Emirates Investment Authority.

Are there any incentives for investing in specific sectors or regions?

Yes, there are incentives for investing in specific sectors. These include zero tax on personal and corporate income, 100% repatriation of capital and profits. For specific regions, especially free zones, benefits include 100% foreign ownership and no import or export duties.

How does the UAE support start-ups and SMEs with foreign investment?

The UAE supports start-ups and SMEs with foreign investment through initiatives like the Khalifa Fund for Enterprise Development. This includes providing access to financing, offering business incubation services, and establishing innovation hubs and free zones with specialised facilities and services.

What are the steps to set up a foreign-owned business in the UAE?

To set up a foreign-owned business in the UAE, one must follow these steps:
- Choose a business structure
- Obtain initial approval from the Department of Economic Development
- Reserve a company name
- Apply for a trade licence
- Register the company with the UAE Chamber of Commerce
- Obtain the necessary visas

Are there any special economic zones for foreign investors?

Yes, the UAE has established several special economic zones, also known as free zones, that offer benefits such as 100% foreign ownership, tax exemptions, and customs duty benefits. Each free zone is tailored to specific industries and activities.

What types of business entities can foreign investors establish in the UAE?

Foreign investors can establish various types of business entities in the UAE, including Limited Liability Companies (LLC), Free Zone Entities, Offshore Companies, Partnerships, Branch Offices, and Representative Offices.

What is the process for obtaining business licences and permits?

The process for obtaining business licences and permits involves the following:
- Submitting the required documents to the Department of Economic Development or the relevant free zone authority
- Paying the necessary fees
- Receiving the licence upon approval
- Using the licence conduct business activities in the UAE

What are the currency regulations for foreign investors in the UAE?

Currency regulations in the UAE are liberal for foreign investors, with the Dirham (AED) freely convertible and no restrictions on foreign exchange or capital/profit repatriation. However, it is important to adhere to anti-money laundering laws.

How does the UAE handle the repatriation of profits and capital?

The UAE allows foreign investors to fully repatriate profits and capital without any restrictions. Additionally, there are no taxes on personal income or capital gains, making the process simpler.

Are there any financial incentives or grants available for foreign investors?

Financial incentives or grants for foreign investors may include reduced utility rates, subsidies, government grants in specific sectors, and various incentives offered within free zones. These incentives can include reduced rental rates and administrative support.

What banking facilities are available to foreign investors in the UAE?

Foreign investors in the UAE have access to extensive banking facilities. These facilities include corporate bank accounts, multi-currency transactions, trade financing, and online banking services. Both local and international banks operate extensively within the country.

What labour laws in the UAE affect foreign-owned businesses?

Labour laws in the UAE applicable to foreign-owned businesses include the UAE Labour Law, which governs employment contracts, end-of-service benefits, working hours, and employee welfare, with additional regulations in free zones.

How can foreign investors recruit and employ staff in the UAE?

Foreign investors can recruit staff in the UAE by adhering to the Ministry of Human Resources and Emiratisation (MOHRE) regulations, using licenced recruitment agencies, and ensuring compliance with the Wages Protection System for salary payments.

Are there any restrictions on hiring foreign nationals?

While there are no absolute restrictions on hiring foreign nationals, companies must adhere to certain Emiratisation quotas, which require a percentage of the workforce to be Emirati and obtain work permits and residency visas for foreign employees.

What are the visa and residency requirements for foreign investors and their employees?

Visa and residency requirements for foreign investors and their employees include obtaining a work permit (labour card), an entry visa, and a residency visa. Investors may be eligible for long-term visas under certain conditions, such as property ownership or substantial investment.

What support services are available for foreign investors?

Foreign investors in the UAE have access to a range of support services. These include assistance with business registration, provision of market information, legal advisory services, and access to financing, particularly within free zones.

Are there any governmental or private organisations that assist foreign investors in the UAE?

Both governmental and private organisations in the UAE offer extensive support to foreign investors. Governmental organisations such as the Ministry of Economy, the Department of Economic Development, and the Emirates Investment Authority, as well as private entities like business councils and chambers of commerce provide valuable assistance to foreign investors.

How can foreign investors access market research and data relevant to their investment?

Foreign investors can access market research and data through various channels. These include government publications, commercial service providers, industry associations, and partnerships with local universities and business incubators.

What networking and partnership opportunities are available for foreign investors?

Foreign investors in the UAE have numerous networking and partnership opportunities. These are facilitated through trade fairs, business summits, professional networking groups, and the extensive business chambers and councils in the UAE that foster community and collaboration.

What lifestyle can foreign investors expect while living in the UAE?

Foreign investors in the UAE can expect a cosmopolitan lifestyle with high standards of living, including access to luxury amenities, a diverse range of dining and entertainment options, and a blend of modern and traditional cultural experiences.

What are the healthcare and education facilities like in the UAE?

The UAE boasts world-class healthcare and education facilities. These include state-of-the-art medical services with international accreditation, as well as a wide selection of international schools and universities offering reputable education programmes.

What are the cultural norms and legal considerations for foreigners living in the UAE?

Cultural norms in the UAE emphasise respect for Islamic traditions and local customs, requiring modest dress and public behaviour. Legally, strict laws govern alcohol consumption, social conduct, and speech. Foreigners should be aware of and comply with these laws.

How does the UAE ensure safety and security for foreign residents?

The UAE ensures the safety and security of foreign residents through stringent law enforcement, a high police presence, comprehensive surveillance systems, and strict laws that contribute to its status as one of the safest countries in the world.

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