It's no secret that the UAE is a unique country for doing business in terms of a combination of opportunities, a simplified bureaucratic system, favorable tax rates and good access to all resources. But things are not so simple as they seem at first glance here. The fact is that the country is not monolithic in terms of existing laws, norms and rules for business. Firstly, there are federal laws common to all that apply throughout the country; secondly, each of the Emirates has its own regional rules, and thirdly, each of the free zones also has its own regulation system. As a result, when you register your business here, you find yourself in a specific legal environment with lots of features, certain restrictions and prohibitions.
In order to conduct a business and financial analysis in the UAE correctly, you should have certain knowledge and a general understanding of the situation, that is, to be a qualified financial analyst in the UAE. Due to the specifics of the local business environment, the following things should be noted first:
- Geography of business interests. This is the first and top important factor, which in most cases determines the structure of the future business. In free zones, you can register both onshore companies that have limited access to the local market, and offshore companies that can only work outside the country. Outside of free zones, you can register a local company that can operate without any restrictions both on the local market and the markets of other countries, but you must have a local partner with not less than 51% of the shares. In addition, in free zones and beyond them, you can register a branch of a foreign company. We should note that the right choice must be made at the very beginning, since transferring a business to another jurisdiction is extremely difficult.
- Access to land plots, real estate and other resources in the UAE. The jurisdiction you choose provides access to certain infrastructure resources. These are, as a rule, office premises, warehouses, land plots for construction, etc. Local residents have almost unlimited access to local facilities, while there is a number of restrictions for foreigners, but still one can find quite a lot of options to choose from. Access to ports, airports, to energy resources, to the labor market – each individual jurisdiction has its own opportunities and limitations, and this also has to be taken into account in the process of business analysis.
- Opportunities for potential growth and expansion in the UAE. When you are ready to register your business, and the chosen model seems optimal, you must take into account potential growth. Will current rules in your jurisdiction allow you to access a particular resource or market in the future? If not, and you plan to expand, then it is better to reconsider your decision and conduct a business analysis again.
For adequate and effective business analysis, you will need a good understanding of the local market and all its features, so we recommend you to use the services of our consultants who will conduct a full competent business analysis for you in the UAE.
