United Arab Emirates (UAE) Introduction Investment climate • • • •
local currency: Dirhams (AED) stable economic environment no personal income, corporate or withholding taxes tax free zones and special economic areas allowing incentives.
Quality of living •➢ • • •
large population of foreign nationals excellent infrastructure good education system good health care.
The UAE is a constitutional federation of seven emirates, the constituent emirates are Abu Dhabi, Dubai, Sharjah, Ajman, Ras al-Khaimah, Fujairah, and Umm al-Quwain. Being one of the largest economies in the Middle East, the country offers investment opportunities to local and international investors and attracts trade because of a number of free zones located throughout the emirates which offer lucrative incentives. Good transport links compliments the potential for international trade. While petroleum and natural gas are two of the predominant natural resources which encourage investment and trade, the aviation industry continues to grow. The UAE is increasingly spending in the IT infrastructure.
96 A global guide to business relocation
A major center for trade and tourism, the UAE enjoys a strong economy supported by a conducive investment climate in the Free Trade Zones (FTZ) with effective economic and investment policies.
The UAE has a high inbound migration rate and thus, has a large expatriate community. The people of the UAE generally enjoy a high standard of living and the cost of living is relatively high compared with many countries in the Middle East region. The country has no personal income, corporate or withholding taxes. The country is characterised by an almost complete absence of taxation.