With the rapid changes in the global economy, the UAE continues to strengthen its position as a major investment hub by updating laws and regulations that support the business environment. The latest of these amendments is the new investment law, which is a strategic move aimed at attracting more investments and boosting economic growth.
The new investment law in the UAE embodies the country’s vision to develop the business environment, and reflects the government’s commitment to improving the ease of doing business and enhancing transparency. This law introduces a set of amendments that include granting greater facilities to foreign investors, such as allowing full foreign ownership of companies in various sectors, simplifying company registration procedures, and reducing bureaucratic restrictions.
One of the most prominent features of this law is that it provides incentives that include tax exemptions and economic incentives that encourage companies to invest in strategic projects. The law also contributes to improving the level of investor protection by strengthening their rights and providing effective legal mechanisms for resolving disputes.
This law is not just legislative amendments, but rather a strong signal of the UAE’s readiness to adapt to global economic changes and achieve sustainable development. The new investment law provides a flexible framework that attracts local and international investors, encourages innovation and growth, and enhances the UAE’s ability to compete in global markets.
In this article, we will explore the details of the new investment law in the UAE, how it affects investors and companies, and its potential impact on the national economy.
How to invest in the UAE
Investing in the UAE requires following the right steps and complying with local laws. Here are general steps on how to invest in the UAE:
Determine the type of investment: Determine the type of investment you want, whether it is real estate, commercial, or in a specific sector such as technology, tourism, industry, etc.
Study the market and opportunities: Conduct a market study to understand the available investment opportunities and demand in the local market.
Get legal advice: Consult a local legal advisor to understand the local laws and regulations related to investing in the UAE.
Choose a legal structure: Choose the appropriate legal structure for your investment, such as a limited liability company, partnership, or free zone company.
Establish a company: Establish and register the company with the relevant authorities, while obtaining the necessary licenses.
Open a bank account: Open a bank account for the company to manage money transfers and other financial transactions.
Tax compliance: Make sure to register with the Federal Tax Authority and comply with tax controls.
Government registration: Register the company with the relevant government agencies such as the Department of Economic Development.
Employment and visas: Hire the necessary employees and obtain the necessary visas for them.
Performance and Compliance Monitoring: Monitor investment performance and ensure compliance with all regulations and legislation.
Communication and Relationship Building: Build relationships with local businesses and government entities to enhance investment success.
Why is the new investment law in the UAE important?
The new investment law in the UAE represents a fundamental shift in the country’s economic policies and is of great importance in several areas:
Enhancing the business environment: The law aims to improve the business environment in the UAE by simplifying procedures and easing restrictions on establishing companies. This contributes to attracting more foreign investment and making the UAE a preferred destination for global investors.
Increasing competitiveness: The law provides competitive advantages by facilitating 100% foreign ownership of companies in many sectors, which enhances the UAE’s ability to compete with global markets and makes it more attractive to investors.
Encouraging innovation: The law encourages innovation and technology by providing incentives to investors in the technology and innovation sectors. This contributes to diversifying the national economy and achieving the goals of the UAE’s vision to be a leader in the field of innovation.
Improving transparency and investor protection: The law enhances transparency and establishes a strong legal framework to protect the rights of investors. This contributes to building confidence between local and foreign investors and enhancing economic stability.
Stimulating sustainable economic development: By providing tax incentives and facilitating licensing procedures, the law contributes to driving economic growth and promoting sustainable development in the country.
Increasing investment flow: The law encourages attracting new investments by providing facilities and guarantees to investors, which increases the flow of foreign direct investment and enhances the UAE’s position as a global economic hub.
Diversifying the economy: The law supports efforts to diversify the national economy by promoting investment in non-oil sectors, which reduces dependence on oil and enhances the sustainability of the UAE economy.
Overall, the new investment law in the UAE is an important step towards achieving the country’s economic goals and contributes to strengthening its position as a global hub for business and investment.
Consequences of Implementing the New Investment Law in the UAE
Implementing the investment law in the UAE will have multiple consequences that will positively impact the national economy and business environment. The most prominent of these results are:
Increasing the flow of foreign investment: With the easing of restrictions on company ownership and facilitating procedures, the UAE will witness a significant increase in the flow of foreign direct investment. This will enhance economic growth and increase the diversity of business activities in the country.
Enhancing economic competitiveness: By providing a more flexible and competitive business environment, the UAE will be able to improve its position as a global economic hub. This will contribute to attracting global companies and investors, which will enhance its competitiveness at the international level.
Encouraging innovation and technological development: Providing incentives to investors in the fields of technology and innovation will encourage the development of new projects and achieve progress in these sectors. This will help achieve the goals of the UAE’s vision to be a leader in the field of innovation and technology.
Improving the business environment: Simplifying legal and administrative procedures will contribute to accelerating the establishment of companies and facilitating business operations, which will enhance business efficiency and reduce the obstacles faced by new companies.
Enhancing transparency and protecting investors’ rights: Enhancing transparency and protecting investors’ rights will help build strong confidence between local and foreign investors. This will contribute to creating a stable and attractive investment environment.
Diversifying the economy: By encouraging investment in various non-oil sectors, the law will contribute to reducing dependence on oil and enhancing the sustainability of the national economy. This will help achieve sustainable development and promote growth in various sectors.
Creating new job opportunities: Increasing investments will lead to the establishment of new companies and the expansion of existing companies, which will create new job opportunities and contribute to reducing unemployment rates.
Improving infrastructure: New investments will contribute to improving and developing the infrastructure in the UAE, enhancing the quality of life and attracting more companies and individuals to invest in the country.
The role of the new investment law in attracting investments
The new investment law in the UAE plays a pivotal role in attracting foreign investments and stimulating economic activity in the country. This law includes several key aspects that effectively contribute to attracting investments:
Easing restrictions on company ownership: One of the most prominent aspects of the law is allowing foreign investors to own 100% of companies in many sectors. This feature enhances the attractiveness of the UAE market for international investors looking for investment opportunities without the need for a local partner.
Facilitating licensing procedures: The new law aims to simplify and expedite procedures related to obtaining licenses and establishing companies. This contributes to reducing the time and costs associated with starting a business, making the UAE a more attractive destination for investments.
Providing tax incentives: The law includes providing tax incentives and exemptions on some investment activities, which reduces the financial burden on companies and increases returns on investments.
Enhancing transparency and protecting investors’ rights: The law enhances transparency in commercial transactions and provides a strong legal framework to protect investors’ rights. This creates a safer and more confident environment for investors, which enhances their desire to invest in the UAE.
Encouraging innovation and technology: The law provides incentives for investors in the fields of technology and innovation, which enhances the development of these sectors and encourages attracting investments in new and advanced projects.
Improving the investment environment: By reviewing and improving regulations and laws, the law aims to provide a more flexible and suitable investment environment for investors, which enhances the UAE’s ability to compete with global markets.
Facilitating banking and financial procedures: The law includes improvements in procedures related to banking and financial services, making it easier for investors to open bank accounts and conduct the financial transactions necessary to manage their businesses.
Stimulating economic diversification: By encouraging investments in a wide range of sectors, the law contributes to diversifying the UAE economy and reducing dependence on oil, thus enhancing the sustainability of economic growth.
Investment Costs in Dubai
Investment costs in Dubai vary depending on the type of project, its size, and the location where the investment is made. However, in general, the main costs include the following:
Licensing and registration fees: These include the costs of obtaining a commercial license and registering the company with the relevant authorities, which are necessary to operate the business legally. These fees may vary depending on the type of activity and the size of the company.
Rent and leasing: The costs of renting or purchasing the company’s headquarters, which can vary greatly depending on the location and size of the space required.
Labor and recruitment: These include the costs of hiring employees and workers, including salaries, insurance, and training. Human resource management is an important factor that affects the total costs.
Legal compliance and insurance: These include the costs of complying with local regulations such as taxes and social insurance, in addition to commercial insurance that may be required to insure the company against potential risks.
Operating costs: These include the daily expenses of running the business, such as purchasing raw materials, paying bills, maintenance, and marketing.
Infrastructure and equipment: These include the costs of purchasing or renting the equipment and supplies necessary to start and operate the project, such as technical devices and furniture.
Legal and consulting costs: These include legal and accounting consulting fees, which help in establishing the company legally and effectively.
Investment in technology and development: These may include costs related to software development, website creation, and technology investments to enhance performance and efficiency.
Additional costs: There may be additional costs associated with obtaining special permits or licensing for certain practices, in addition to marketing and promotion costs to attract clients.
In conclusion, investing in the UAE is a great strategic option for both local and international investors, thanks to the advanced and stable economic environment it provides. Factors such as political stability, an attractive tax system, and advanced infrastructure contribute to enhancing the attractiveness of the UAE as a major investment destination.
In this context, Itqan plays a pivotal role in facilitating the investment journey in the UAE. With its extensive experience and specialized team, Itqan provides a comprehensive range of services that include incorporation, registration, and obtaining licenses, in addition to providing strategic advice that helps guide investors towards making the most effective decisions. By partnering with Etqan, investors can benefit from the company’s deep knowledge of legal and procedural requirements, helping them overcome challenges and achieve their investment goals efficiently.
Etqan also contributes to simplifying company registration processes and providing legal and financial advice, making the process of starting a business smoother and faster. With Etqan’s support, investors can benefit from the advantages available in the various free zones and mainland in the UAE, allowing them to focus on developing their businesses and increasing their chances of success.
With these facilities and support provided by Etqan, investing in the UAE becomes more attractive and less complicated. The company provides the tools and expertise necessary to succeed in the dynamic business environment, enhancing investors’ ability to benefit from the abundant economic opportunities in this thriving market.
The most important frequently asked questions about the new investment law in the UAE
What is the new investment law in the UAE?
The new investment law is a legislation that aims to enhance the investment environment in the UAE by providing benefits and facilities to investors, including easing restrictions on company ownership and simplifying licensing procedures.
What are the most prominent advantages provided by the new investment law?
The law provides benefits such as allowing full foreign ownership in many sectors, reducing restrictions on investment, facilitating licensing procedures, and providing tax incentives.
Can foreign investors fully own companies under the new law?
Yes, the law allows foreigners to own 100% of companies in a wide range of sectors, enhancing the attractiveness of the UAE as an investment destination.
What sectors are covered by the foreign ownership facilitations?
The facilitations cover many sectors such as technology, industry, trade, and services. However, there may be some exceptions based on business activities and local policies.
How does the law affect company registration and licensing procedures?
The law further streamlines company registration and licensing procedures, reducing the time and costs required to start a business. This is done by improving administrative procedures and providing additional support to investors.
