Why time to invest in Dubai is NOW?
Cost reductions | Government Support | Remote licensing
June 9th was the start of a series of webinars organized by @Dubai Chamber in collaboration with @Bizzmosis with the aim to provide all those interested in investing or extending their business in Dubai with the basic information they need when making their decision to invest in Dubai – covering all aspects of the investment as general information on the investment environment | detailed information on sectors & economic fields | various logistical, financial & organizational arrangements for starting a business.
NOW is the right time to invest and open a business in Dubai!
⏩ Mr. Omar Alkhan – Director of International Offices @Dubai Chamber of Commerce and Industry
⏩ Mrs. Marianna Bulbuc – CEO/Founder of Bizzmosis Business Services
⏩ Mr. Zemedeneh Negatu – Global Chairman @Fairfax Africa Fund, LLC
⏩ Mr. Norvan Acquah – Hayford – Moderator, Public Relations Manager @Ghana Link Network Services
Polling Question nr.1
Do you think the African countries will survive the COVID-19?
Participants answers during the webinar:
95% – Yes
5% – No
Norvan Acquah – Hayford: Considering the hard-work that the current pandemic has caused to tourism & hospitality industry, what do you think would be the road to recovery for this sectors?
Zemedeneh Negatu: “The travel & tourism sector has been hit hard everywhere around the globe due to the pandemic. This will be the last sector to recover post COVID and it might take up to 3 years to recover to the same level pre-COVID. There is a lot of opportunity for investors now, from my perspective – to invest in a new sector. If you are long term investor you need to find ways to sustain the business during the crisis – providing terms, loans, partnerships, etc.”
Polling Question nr.2
Are you interested in registering a company in Dubai? Do you need help?
Participants answers during the webinar:
72% – Yes
28% – No
Why invest in UAE and Dubai?
The most transparent, forward-thinking and innovative business environment in the Middle East
- UAE offers more opportunities and fewer barriers in innovation-led business ecosystem in the Middle East;
- Dubai is worldwide known as one of the most agile innovation hub with lowest operating costs, rated as one of the best expat lifestyle and active community.
Exceptional diplomatic ties and impeccable country reputation worldwide
- With a Dubai residency, business and travel worldwide as well as visas are simpler to be obtained
- Goods and merchandise greatly valued and accepted worldwide
A supportive and open to discussion government body
- Agile and fast changing legal and business environment, focused on accommodating new businesses and sustaining constantly business operation needs
A tax free environment with 100% repatriation of capital and profits to the country of investors partnered with state of the art banking system and access to worldwide funding
Why setup in Freezone Dubai?
- Areas with special tax, customs and import regime, aiming at worldwide trading and limited to B2B model into the UAE
- Investment hubs and accelerator platforms designed around one or more business categories, infrastructure created specifically to accommodate your industry
- 100% foreign ownership, residency visas and business bank accounts without the need of office rent
- Register your business remotely, all processes and approvals are available online
- Rent waivers for 3+ months for businesses
Why setup in Main Land Dubai?
- Governed by central authorities, direct access to the COVID-19 stimulus package that includes 15 initiatives focused on the commercial sector, retail, external trade, tourism and the energy sector;
- Unlimited trade within UAE and internationally (B2C & B2B);
- Access to transparent government supply with goods and services bidding. Bid bonds have been suspended and an exemption introduced for start-ups from performance guarantees for projects up to AED 50 million.
Why invest NOW in the UAE?
“Trouble is opportunity” Warren Buffet @New York Times
- Remote registration with online identity verification process
- License approval and business registration within 2-3 working days
- The UAE Central Bank has cut the reserve requirements for bank demand deposits from 14% to 7% and increased its economic stimulus package to AED 256 billion (US$ 70 Bn), also reducing the amount of capital banks have to hold for their loans to SMEs by 15% to 25%.
- DSOA FZE (innovation and tech facilities) offers free of charge licensing and registration process, only business premises rent required
- DMCC FZE (commodities trading) offers up to 80% discount on registration fees and operations permits. No office required for non regulated activities.
- Dubai South FZE (airport cargo facilities; EXPO 2021 site) offers 20% discounts on licensing and interest free installment plans for warehousing and logistics facilities
- JAFZA FZE (Worlds reckoned port and shipment facilities) free new companies registration. Interest free flexible payment plans with easy installment schemes. Remote operating
- Freezing the 2,5% market fees for all facilities operating in Dubai
- Cancelation of the 25% down payment required for requesting installment-based payment of government fees for obtaining or renewing licenses
- Permission to renew commercial licenses without mandatory renewal of lease contracts
- Exemption of companies from permits for new sales/offers and promotions
- 10% reduction of water and electricity bills, including residential and commercial bills, for 3 months
- A refund of 20% of the customs fee imposed on imported products sold in Dubai
- A 90% reduction of fees imposed on submission of customs documents
- Reduction of 50% on “municipality fees” imposed on sales at hotels
- A freeze on “fees” charged for the sale of tickets, issuance of permits and other government fees related to entertainment and business events.
- Ministry of Economy has reduced fees associated with 94 services provided to individuals and business sector. Most notable are the 95% reduction in fees for the license to utilize the UAE mark.
- Premises rent waivers for retailers
What should you do next?
“The Targeted Economic Support Scheme available now in the UAE, various fee waivers and reduction measures provide a series of reliefs that are intended to support existing and new coming private companies in the UAE and its free zones during COVID-19.”
“Do the events causing others to panic provide opportunities for you?
Nowadays the estimate injection of funds required to open a company or a representative office or an operation office in the UAE is up to 75% lower than it used to be 3 months ago. This opportunity will outlast for the next 3 months as it is expected.
- Be in touch with the Dubai Chamber of Commerce and Industry team for guidance and support. They are the most reliable, transparent and informed team ready to assist you to further understand what are the options available, what are the procedures you have to follow, suitable and cost-effective platforms to register a business in Dubai. Also they can introduce to the needed suppliers and clients locally for future successful collaborations.
- Contact Bizzmosis team for support & help for registering your business, for obtaining the needed permits and approvals, clearances for goods, customs registration or licensing.
Polling Question nr.3
How soon are you looking to establish a business in Dubai?
Participants answers during the webinar:
37% – from now on within the next 3 months
40% – 3-6 months
34% – 6-12 months
17% – after 1 year
Peter: What is the procedure of registering a product in Dubai and tentative costs? I’m precisely interested in registering tea and avocado brand in the UAE.
Marianna Bulbuc: Product registration in Dubai is regulated by multiple departments, depending on what type of product it is. In this instance, the tea is a partially a manufactured product and avocado a final product (you collect them and trade them as food or vegetable trading activity). These 2 products are regulated by the Dubai Customs as well as Dubai Municipality through Montaji system. For avocado product as a final product and non-processed food, a Dubai Customs clearance will be required and it will cost around 25 AED. Usually a company has to register first its license either in Freezone or Mainland, second to register a Customs Import/Export account, then register through the online system of the Customs Import/Export for product. For Dubai Customs registration, the license copy presentation and a copy of the registration from the country of origin of the goods will be required. The documents will have to be translated in Arabic, before submitted to the government authorities. The process takes from 1-3 working days and all can be done online.
Talking about the tea product registration, if the tea is made out of leaves in wholesale trading, then the product will have to be registered through Customs. If we talk about packaged tea which is semi-processed and branded, will have to be registered through Dubai Municipality – Montaji system. Product registration through Montaji system starts from 500 AED/product, depending if the product is regulated or what is the final stage of the product being commercialized. If the company does not have a license in Dubai and wants to trade with these goods through a legally registered distributor in the UAE, then it will be the distributor who has to register the products under their license and liability, before they are allowed to clear them at Customs and import them for local trading.
Bazira: If I can register my company remotely, how about the business bank account?
Omar Khan: Our banks are very numerous. We have global banks, regional banks and very competitive banks such as: Emirates NBD, Abu Dhabi Commercial Bank, National Bank of Ras Al Khaimah and many more. With the current global situation, UAE banks are more flexible in terms of registration with possible exceptional approvals. As long as the compliance of the procedures is followed, there is no reason to not have a bank account registered remotely.
Anonymous Attendee: For a Mainland company in the UAE must you have an Emirati partner?
Marianna Bulbuc: In Mainland, the UAE government has worked in the last few years in sustaining businesses that want to invest and retain 100% ownership. In the last 9 years it was always been possible to have a Mainland entity, 100% owned by the foreign investor for professional and services activities. For commercial or industrial activities, there was a requirement of having a 51% nominal or not nominal guarantor, be it an Emirati individual or Emirati corporation. Currently with the latest UAE law amendments, if the investor comes to invest in highly promoted industries such as: agriculture with the modern farming platform as well as Mr. Omar Khan has mentioned: envirotech, meditech industries – a cup of minimum investment is required depending on the industry, in that instance even commercial and industrial activities are available for foreign investors with 100% LLC – Limited Liability Company.
If we look at the cost-effective initial presence through a commercial and industrial activity without an injection of a specific amount of money, but still with a requirement of 51% nominal ownership or active investment ownership by a UAE national or corporation, the government has created numerous instruments where investors can control or have access to control the 51% ownership. There have been amendments in the commercial and civil law to accommodate a partial role of the nominal shareholder in the Memorandum of Association also through the jurisdiction such as DIFC or ADGM Freezone which are under the UK law jurisdiction. There is a possibility of creating instruments of mutual agreement of control of 51% shares by the foreign investor.
To summarize it, the LLC structure with a corporate or individual Emirati partner is still required for a business that comes with smaller investments and require a commercial investment or an industrial business model.
In a closing remark, Omar Khan added: “Here in UAE, we like challenges and because we go through the challenges, we always get to sharpen our tools often and reassess how we can do business together. Today’s event was about highlighting some of the incentives that the federal and local government has been taking to support and sustain the local business community. Our goal and focus is on our existing members, but also there is a huge potential for foreign investors to avail the current incentives.
It is a limited window of opportunity to take advantages of.”
🎥 Watch the entire webinar and find out what other interesting questions have been answered during the live event: https://bit.ly/3eX9QxK
Watch here the other 2 webinars:
– Benefits of doing business in Dubai series 2 – TAKE THE FEAR OUT – ASK YOUR QUESTIONS
– Benefits of Doing Business in Dubai Series 3 – FREELANCING, OPENING A BANK ACCOUNT, RESIDENCY VISAS
Bizzmosis is honored and thankful for the opportunity and collaboration and look forward to provide the needed support to all entrepreneurs looking to establish or expand their business into the UAE!
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