The United Arab Emirates (UAE) remains one of the most attractive destinations for entrepreneurs looking to expand their business. Known for its strategic location, bridging Europe, Asia, and Africa, business-friendly tax environment, and modern infrastructure, the UAE continues to offer a wealth of opportunities for growth, making it an ideal choice for entrepreneurs looking to set up shop in the region.
Why choose the UAE for your business?
- Tax-Friendly Environment
As of 2025, the UAE maintains a competitive corporate tax rate of 9%, one of the lowest in the Gulf Cooperation Council (GCC) region. Additionally, there is no personal income tax, making it an attractive option for both businesses and individuals.
However, it’s important to note that the UAE has introduced a Domestic Minimum Top-up Tax (DMTT) at 15% for large multinational enterprises, aligning with global tax standards.
- Strategic Location and Infrastructure
Situated at the crossroads of Europe, Asia, and Africa, the UAE offers excellent connectivity and a robust logistics network. Its state-of-the-art infrastructure supports various industries, from finance to technology. The country boasts 10 major airports, 12 seaports, an extensive network of roads and bridges, and six national carriers connecting to over 200 cities worldwide. This infrastructure enables 33% of the world’s population to reach the UAE within 4 hours and 66% within 8 hours, as over 80 airlines connect Dubai to 240+ destinations globally.
- Future-Proof Infrastructure
From innovation hubs like Dubai Silicon Oasis to global financial centers such as Abu Dhabi Global Market (ADGM), the UAE is building the foundation for the economy of tomorrow. With major investments in fintech, AI, and renewable energy, the country offers a future-ready environment where startups can scale and investors can tap into high-growth sectors.
- Multicultural Workforce
The UAE’s diverse expatriate population, expatriates constitute approximately 88.5% of the UAE’s population provides access to a broad pool of skilled labor. English is widely spoken, facilitating smooth communication and operations for entrepreneurs. This multicultural workforce enhances collaboration and innovation, making it easier to build diverse and capable teams.
Understanding UAE business structures
- Mainland Companies
Mainland companies can operate anywhere in the UAE and internationally. They offer flexibility in business activities and are often preferred for their ease in opening bank accounts and securing government contracts
- Free Zone Companies
Free zones provide 100% foreign ownership and are designed to attract international businesses. Each free zone caters to specific industries and offers tailored benefits. For instance, Jebel Ali Free Zone (JAFZA) in Dubai is renowned for logistics and trade
|
Feature |
Mainland Company |
Free Zone Company |
|
Market Access |
Operate freely across the UAE and internationally |
Restricted to operating within the free zone and for international trade only |
|
Ownership |
Requires 51% UAE national partner (except in certain activities allowing 100% foreign ownership) |
100% foreign ownership allowed in all free zones |
|
Office Space |
Physical office space is mandatory |
Flexible options available, including virtual or flexi-desks |
|
Key Zones |
Dubai Department of Economic Development (DED), Abu Dhabi DED |
Dubai Multi Commodities Centre (DMCC), RAKEZ, DIFC, ADGM, and others |
Opening a Bank Account in the UAE
Once your company is registered, the next step is to open a corporate bank account. This process requires a personal visit to the bank. It’s crucial to present a clear business plan and ensure the bank understands your operations and income projections. Developing a strong relationship with your bank manager can make future transactions easier and more efficient.
- Company incorporation documents
- Passport copies of directors and shareholders
- Business plan
- Initial deposit (varies by bank)
- Corporate Accounts: Emirates NBD and Mashreq Bank offer expat-friendly corporate accounts. Required documents include MOA, passport copies, and proof of address
- Digital Banking: Wio Bank supports multiple currencies, including AED and EUR. YAP mainly offers AED transactions, with fees for euro transfers
- Tax Residency: Spend 183+ days in the UAE to qualify for a Tax Residency Certificate, with a fee of AED 50
