Investing in the Emirates

06 Mar Investing in the Emirates

Investing in the Emirates in terms of the fact that the Emirates is the first home for investment for foreigners, as the Emirates is considered one of the most important countries that encourage investment in it, especially for the foreign investor.

The Emirates provides all the facilities for establishing a company in Dubai for foreigners to successfully invest in it, in addition to providing all the means of comfort and luxury for a foreign investor to reside there. Therefore, the Emirates is considered the first home for investment for foreigners.

Itqan Company, a leader in the field of investment consulting, provides its various services to investors wishing to invest in the Emirates , starting from helping them choose appropriate investment opportunities to providing the necessary legal and administrative support.

Conditions for investment in the Emirates

The United Arab Emirates offers easy conditions for foreign investment, as investors of different nationalities can establish their own companies in various economic sectors. Among these conditions we mention the following:

• Obtaining approval from the competent authorities.
• Meeting the specific capital requirements for each type of company.
• Appointing a local agent for foreign companies.

How to invest in the Emirates

The United Arab Emirates offers many ways to invest, including:

• Establishing a company: Investors can establish their own companies in various economic sectors.
• Buying in free zones: Free zones offer many benefits to investors, such as tax and customs exemptions.
• Investing in real estate: Investing in real estate is one of the most common types of investments in the Emirates.
• Investing in stocks: Investors can invest in shares of companies listed on the Abu Dhabi Stock Exchange or the Dubai Financial Market.

Advantages of investing in the Emirates

The United Arab Emirates is a preferred investment destination for investors from around the world, thanks to the stimulating business environment, advanced infrastructure, and stable economy. Among the advantages of investing in the Emirates are the following:

• Stimulating business environment: The United Arab Emirates offers a stimulating business environment for investment, thanks to laws and legislation.
• Advanced and advanced infrastructure.
• Stable economy: The UAE has a stable and strong economy, which reduces investment risks.
• Strategic location: The United Arab Emirates enjoys a strategic location at the crossroads of global trade routes, which allows
• Investors have access to new markets.
• Advanced infrastructure: The United Arab Emirates offers advanced infrastructure, including roads, ports, and airports, which makes it easier for investors to conduct their business.
• Qualified workforce: The United Arab Emirates has a qualified and experienced workforce in various fields.

Steps to establish a company in Dubai for foreigners

When an investor resides in Dubai in order to successfully invest there, and establishing a company in Dubai for foreigners requires some steps or conditions, including the following:

1. Determine the type of company activity that the foreign investor intends to invest in within the Emirates. The Emirates Investment Authority provides many investment activities in the Emirates, such as commercial, industrial, and professional activity.
2. When establishing a company in Dubai for foreigners, the Emirates Investment Authority requires the presence of an Emirati partner, who owns a limited liability company, or contracting with an approved service office.
3. Determine the name of the company when establishing a company in Dubai for foreigners, provided that this name is related to the company’s activity.
4. Finding a suitable place to be the company’s headquarters, in terms of security and protection, and easy access to public facilities, whether rented or owned.
5. Obtaining a lease or ownership contract for the company, and documenting the contract with the competent authorities in the Emirates.
6. Submit all the required documents and papers related to the company’s activity, its name, and company ownership to the competent authorities in the Emirates to obtain the commercial license to start the activity in Dubai.
7. Pay all fees for establishing a company in Dubai for foreigners.
8. Obtaining initial approval to start investing in Dubai.
9. Receiving the commercial license and registering in the commercial registry in the Emirates.

Conditions for establishing a company in Dubai for foreigners

The UAE, represented by the Emirates Investment Authority, has set some conditions for establishing a company in Dubai for foreigners in terms of activities that are permitted and not permitted in the UAE for foreigners.

Among the activities in which foreign investors are permitted to invest are as follows:

1. All activities related to conducting business management for foreign investor companies, or providing management consultations for other companies.
2. All businesses related to buying, owning, selling and speculating on stocks on the stock exchange.
3. All works related to the possibility of owning real estate or lands in the Emirates

The activities that a foreign investor is not allowed to engage in are the following:

1. All investments related to mining, such as oil and petroleum exploration, or exploration for precious metals, or gold, as well as all activities related to investment in this field.
2. All investments related to the field of media, whether owning media agencies of all types, whether audio, print or visual, as well as all activities related to managing these agencies or providing management consultations for them as well.

Also activities related to owning shares of these media agencies on the stock exchange, and speculation in them.

3. All investments in the field of aviation and air transport, whether owning and managing airlines in the Emirates, or providing any management consultations to them, or all activities related to owning shares of Emirati airlines on the stock exchange and trading in them.

Fees for establishing a company in Dubai for foreigners

The Emirates Investment Authority has determined the costs of establishing a company in the Emirates based on whether the company is subject to the local law system, or the law system of free zones in Dubai. The costs of establishing a company in the Emirates will be discussed in some detail as follows:

Firstly, the fees for issuing a commercial license to practice the company’s activity in the Emirates 

The fees related to issuing a commercial license to practice a company’s activity in the Emirates can be known through the following points:

1. The initial approval fee is estimated at one hundred UAE dirhams.
2. The fees for issuing a trade name for the company are estimated at approximately two hundred and ten UAE dirhams.
3. The cost of obtaining a commercial license for a company in any free zone in Dubai is ten thousand UAE dirhams, and for a commercial license for an institution in a free zone it is fifteen thousand UAE dirhams.
4. The costs of the company’s professional activities license are five hundred UAE dirhams, but if the company’s activity is commercial or industrial, the costs of obtaining the commercial license are six hundred UAE dirhams.
5. The cost of obtaining the services of an authorized agent in the UAE is seven hundred UAE dirhams.
6. The costs of having an Emirati partner for the company who owns a limited liability company are five hundred UAE dirhams.
7. The cost of obtaining and printing the commercial license is fifty UAE dirhams.

Secondly, fees for entering and being present in the markets

Details of the special fees required from investors when they wish to enter and be present in the UAE markets can be explained, as we explain these fees as follows:

1. The costs of obtaining any commercial license, whether professional, commercial, or industrial, depend on whether it is according to the local law system, or the law system of free zones.

If the company is according to the local law system, the cost of the commercial license is 5% of the value of the company’s lease contract.

If the company follows the free zone law system, the costs of obtaining a commercial license will be 7.5% of the value of the company’s lease contract.

2. There are also costs when an investor resides in Dubai, such as owning a property for the company. The fees for this are assessed by the Emirates Investment Authority by forming a specialized committee for that.

3. Also included in the costs of an investor’s residence in Dubai are fees specific to the investor’s residence in Dubai, which are 5% of the value of the housing lease contract.

4. The Emirates Investment Authority has set waste fees, which are considered part of the costs of establishing a company in the Emirates, and are assessed by the waste department in Dubai.

 Establishing a company in Dubai for Saudis

Saudi investment in the Emirates is considered one of the most important foreign investments in it, and the Saudi investor follows the advice of Invest in Dubai, and therefore the Emirates works to provide all facilities and procedures for the successful investment of Saudis in the Emirates.

There are some steps for establishing a company in Dubai for Saudis, and the UAE provides them with government agencies designated for Saudis for this matter.

Steps to establish a company in Dubai for Saudis 

1. Follow all previous procedures for establishing a company in Dubai in terms of choosing the activity, name, and location of the company, and submit all relevant papers in a special section for Saudis in the Department of Economic Development in the Emirates.
2. Submit an application to obtain a commercial license and obtain a payment authorization. Payment must be made within thirty days of obtaining the payment authorization. The application for obtaining the license is considered canceled if payment is not made within six months from the date of obtaining the payment authorization.
3. The name of the company is registered in the Chamber of Commerce in the Emirates, and a membership is obtained.
4. Provide all correct information regarding the company’s entire capital in the company’s commercial registry.
5. Issuing a single payment permit for all procedures for obtaining a commercial license, with a value of three thousand dirhams.
6. It must be known that the validity of the company’s commercial license begins from the date of issuance of the payment authorization.
7. Receiving the commercial license and opening a commercial register for the company.

Papers and documents required for investment in the Emirates

The papers and documents required for investment in the Emirates vary according to the type of investment and commercial activity. It is recommended to contact the competent authority to inquire about the papers and documents required before starting the investment process, as the basic papers and documents generally include the following:

• A valid passport
• Personal Photos
• A letter from the bank confirming the availability of capital
• Detailed business plan
• Feasibility study
• Company incorporation contract (if any)
• Commercial license (if applicable)
• Approval of the competent authorities (if any)
• medical certificate
• Good conduct certificate
• rent contract
• Driving License

It is always preferable to ensure that all papers and documents are translated into Arabic or English, making sure to have all papers and documents certified by the competent authorities, and keeping copies of all papers and documents. By following these steps, you will be able to obtain the papers and documents necessary to invest in the Emirates easily.

Frequently asked questions about residency and investment in Dubai