- The industrial sector in UAE

The industrial sector in UAE

The industrial sector in UAEExcellent indicators and active development of country’s economy have ensured a rapid growth of the industrial sector in the United Arab Emirates during past decades. Like many years before, the main economic areas of the country remain oil-gas industry, oil-chemical industry and metallurgy. Along with those, machine building industries as well as light and food industry also actively grow.

First and foremost, the increase of the turnover capital and exchange of all types of industrial goods is conditioned by the fact that the Emirates represent the largest trading hub at the junction East and West. The extensive and sophisticated logistical conditions ensure the effective international exchange of goods. The turnover of raw materials, spare parts and components for the industrial equipment in on the continuous and significantly rise.

These opportunities significantly reduce transport and raw materials expenses of the international industrial enterprises. High level of business activity, the presence of modern sea and air transportation hubs, high volumes of the exchange of goods allow the industrial business to establish effective solutions for products trade.

It’s no secret, that the active dynamics of oil and gas industry attract highly qualified specialists from all over the world. Owing to this kind of influx of highly qualified labor force, the realization of many innovative projects and the incorporation of the most contemporary technologies become possible.

The United Arab Emirates have always remained open to the industrial investments and innovation, which has made the state ideal for development and refinement of industrial production capacities.

The main advantages of setting up the production in the Emirates:

  • Opportunity to optimize taxes and repatriation of investment capitals and profits.
  • Full exemption of customs duties
  • Wide range of choice on the local market for industrial raw materials, equipment and spare parts.
  • Effective logistics and developed infrastructure by the country.
  • Reasonably low cost of qualified labor force.
  • Clearly defined legal base and assets protection.

The goods made on the territory of the Emirates are subjected to mandatory certification within the framework stipulated by the legislation. The specialized companies provide services for the certification procedures and accomplish the job in the shortest possible time.

The certification of goods made in the Emirates allows reducing the expenses linked to the international trade. This kind of production is not levied by customs and has no limitations on import to Europe, unlike some types of production made, for example, in China.

Apart from the licensing services, you can entrust our professionals the organization and startup of the production, selection of qualified employees, legal and consulting support, representation in the governmental authorities and all management controlling functions.

Organization of production

vWhen setting up a production in the United Arab Emirates, if you aim to concentrate your target sales to the local market, it is advised to form a local company with participation of a local sponsor. Often, the participation of the local sponsor implies no effective rights of the sponsor in the company, neither rights on any of its profits. The operation and ownership as well as the distribution of profits remain the tasks of business owners.

The industrial company in the Emirates – the advantages and opportunities:

  • Company, performing its trade on the local market is exempt from the customs duty of 5 %.
  • Opportunity to reduce expenses of the local trade agents, who are mandatory for foreign companies working in FTZ.
  • Reasonably low rent prices of production and warehouses premises.
  • Reasonably low license purchase and renewal cost in government authorities.
  • Extended opportunities for residency visas applications for investors, companies employees and members of their families

The setting / opening of production / factory in the Free Trade Zones.

In case if the planned or expanding business is more orientated on the international trade relations, we  recommend registering a company in one of the multiple Free Trade Zones.

It is important to note, that such free trade zones are located practically all around the entire United Arab Emirates. The location can affect some features and specifics of the zone. For example, if you choose the zone close to the Dubai mega polis, the rental costs for warehouses and production premises are relatively high. In turn you will save on engineering communications and electrical energy expenses as well as gain a significant advantage in transportation solutions and logistics.

Besides, the Free Trade Zones located close to Dubai are already part of the big city.

If the necessity to be close the megapolis is not that crucial, you can choose other free trade zones, as there are many of them in the Emirates. The remote Free Trade Zones will allow reducing expenses on personnel accommodation, rent and other expenses. Amongst many nuances and advantages, we can draw the main key factors affecting the choice.

The key factors:

  • The nature of business activity.
  • The sales policy and the choice of market (local and international).
  • Raw materials opportunities.
  • Opportunities for export and import of products, the presence of sea and air junctions.
  • Level of requirement for qualified labor force.

It is important to understand, that all the auspicious conditions for the organization of the effective and profitable production have already been created in this country. Make your choice toward the economical and perspective solution.

Organize your production in the Emirates with minimal expenses and payments.

Get in touch with us to get more details on where to start.