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UAE laws for investors

١٣ أبريل UAE laws for investors

What are the UAE laws for investors? The UAE is considered one of the world’s leading destinations for investment, thanks to laws and policies that enhance the business environment and attract investors from all over the world. The UAE offers a range of incentives and benefits that facilitate the establishment of businesses, such as free zones that allow full foreign ownership and tax exemptions. In addition, the UAE has an advanced legal system that ensures the protection of investors’ rights and promotes transparency and integrity. As the UAE economy develops and diversifies, the government continues to update the UAE’s laws for investors , making it an ideal environment for growth and innovation. In this article, we will review the most prominent laws regulating foreign investments in the UAE, and shed light on the advantages the country provides to attract foreign investments.

UAE

Laws and regulations for investors in the UAE

The United Arab Emirates enjoys an attractive investment environment characterized by transparency and facilities for investors, through a set of laws and regulations that aim to encourage investment and protect the rights of investors. Here are the most prominent laws and procedures related to investment in the Emirates:

  1. Foreign Direct Investment Law: Allows foreign investors to own up to 100% of companies in many sectors, especially in free zones . It requires foreign companies to register with the Ministry of Economy and obtain the necessary licenses.
  2. Free Zones Law: Provides many incentives, such as tax exemptions for up to 50 years, and freedom to transfer profits. Free zones cover diverse sectors such as trade, services, and technology, making it easier for investors to set up their businesses.
  3. Commercial Companies Law: Regulates the formation and types of companies, including limited liability companies and joint stock companies. It sets out the requirements for establishing companies, including registration, licensing, and taxes.
  4. Competition Protection Law: Aims to ensure a fair competitive environment and prevent monopolistic practices.
    Enhances consumer rights and encourages innovation and growth.
  5. Labor laws: Protect workers’ rights and set working conditions, including minimum wages and working conditions.
    Guarantee investors’ rights by providing a stable working environment.
  6. Intellectual Property Law: Protects investors’ intellectual property rights and promotes innovation. It includes copyrights, trademarks, and patents.
  7. Tax Law: It includes an efficient tax system, as there is no personal income tax, and there are low corporate tax rates. The country also offers tax exemptions to investors in some areas.
  8. Facilitating Licensing: The UAE offers fast and efficient business licensing services, making it easier for investors to start their businesses quickly. These laws and regulations are part of the UAE’s strategy to attract foreign investment and boost the national economy. As laws continue to evolve, the UAE remains a preferred destination for investors from all over the world.

Investing in Dubai

Investing in Dubai is an attractive option for many international investors due to its dynamic economic environment and advanced infrastructure. Dubai is strategically located between the East and the West, making it an ideal starting point for businesses. The emirate offers a variety of investment opportunities in different sectors such as real estate, tourism, trade, technology, and renewable energy.

The Dubai government is always seeking to enhance the business environment by implementing incentive policies, such as tax exemptions and facilitating company formation procedures. It also allows foreign investors to own 100% of companies in free zones, which enhances confidence and transparency. Dubai also provides additional incentives, such as long-term visas for investors, which facilitates the process of settling and investing.

Events such as Expo 2020, Gulfood and GITEX Technology Week are important platforms for investors to showcase their innovations and seek new partnerships. Moreover, the regulated legal environment and advanced logistics services make Dubai a preferred destination for startups and foreign investors. Ultimately, investing in Dubai represents a great opportunity for growth and prosperity, reflecting the emirate’s commitment to a prosperous and thriving future for businesses.

Steps to invest in Jebel Ali

Investing in Jebel Ali is an attractive option due to its advanced infrastructure and strategic location. Here are the steps to invest in Jebel Ali:

  1. Determine the business activity: Determine the type of business activity you want to invest in, whether commercial or industrial.
  2. Find a local partner (if required): If you plan to establish a company outside the free zones, you may need a local partner who owns 51% of the company.
  3. Choosing the right area: You can choose between Jebel Ali Industrial Area or free zones such as Jebel Ali Free Zone (JAFZA) which offers great advantages to investors.
  4. Submitting the application: Submit your application for a commercial license from the competent authorities. In the case of free zones, the application can be submitted directly to the free zone administration.
  5. Prepare the required documents: Prepare all the required documents, including the business plan, copies of passports, and legal certificates.
  6. Open a bank account: Open a company bank account in a local bank to facilitate financial transactions.
  7. Company Registration: Register the company and obtain the trade license after fulfilling all requirements.
  8. Office insurance: Insuring a workplace, whether an office or a warehouse, depending on the type of business.
  9. Recruitment and Visas: Recruit the necessary staff and apply for work visas for employees.
  10. Commencing Operations: After completing all the steps, you can start business operations and comply with local regulations.
    Jebel Ali has promising investment opportunities, so it is important to consult a legal advisor or a specialized company such as “Atqan” for additional support during this process.

Investment areas in Jebel Ali

Jebel Ali is one of the most prominent investment destinations in the UAE, offering a wide range of opportunities in various fields. Here are some of the main investment areas in Jebel Ali:

  1. Industry: Jebel Ali is an advanced industrial hub with many factories and companies. Investments can be made in manufacturing sectors such as food, chemicals, pharmaceuticals, and equipment.
  2. Trade: There are great opportunities in trade, including wholesale and retail trade. Jebel Ali Port, one of the largest ports in the region, provides excellent logistics facilities for trading companies.
  3. Logistics and Transport: Jebel Ali is a strategic point for distribution and transport, making it ideal for investment in logistics and shipping services. This includes warehousing, supply chain management, and transportation services.
  4. Technology: Jebel Ali provides an ideal environment for technology and innovation investments, including startups in advanced technology areas such as artificial intelligence, the Internet of Things, and e-commerce.
  5. Real Estate: Investment opportunities include developing real estate projects, such as malls, residential complexes, and offices. Investing in real estate in Jebel Ali is an exciting opportunity given the population and economic growth in the area.
  6. Tourism and Entertainment: Jebel Ali offers investment opportunities in the tourism sector, including hotels, resorts, and entertainment facilities. Tourism projects can benefit from the continued growth in visitor numbers to Dubai.
  7. Renewable Energy: Interest in renewable energy is growing in the UAE, opening up investment opportunities in solar and wind energy projects, especially in light of the trend towards sustainability.
  8. Financial Services: Investments can be made in financial and banking services, including banks, insurance companies, and financing, which enhances the economic growth of the region.
    Jebel Ali is characterized by the availability of advanced infrastructure, making it an attractive environment for investors from various sectors.

UAE

Establishing a company in the free zone

Arab investment in the free zones in the United Arab Emirates is the opportunity that many Arab and foreign investors and pioneers in the field are waiting for, who want to establish a company in the free zone that is their own, without the need to communicate with a local sponsor. The Investment Authority determines the conditions for establishing a company in the Gulf in cooperation with the Gulf Cooperation Council, and this type of company has been designated to serve the idea of ​​foreign and Arab investment, as it encourages investors to establish their own companies here in the Emirates, as this system is characterized by ease and also low establishment costs.

In conclusion, the UAE’s investor laws reflect the government’s commitment to enhancing the business environment and encouraging foreign investment. The country provides a clear and flexible legal framework that protects investors’ rights and facilitates the establishment of companies. With tax exemptions and full ownership in free zones, in addition to a sophisticated logistics system, the UAE continues to attract investors from all over the world. The government’s commitment to developing and updating laws reflects its desire to keep pace with global economic changes and enhance the UAE’s position as a global business hub. The continued support for projects and investments also encourages innovation and enhances economic diversification.

Frequently asked questions about UAE laws for investors

What are the conditions for establishing a company in the Emirates?

Requirements typically include submitting a business plan, defining the business activity, preparing legal documents such as passports and legal certificates, and paying the required fees.

Can a foreign investor own 100% of a company in the UAE?

Yes, foreign investors can own 100% of companies in free zones, while in onshore zones, a local partner is required to own 51% of the shares.

What tax benefits does the UAE offer to investors?

The UAE does not impose income tax on individuals, and there are tax exemptions for companies in many free zones, making the investment environment more attractive.