Conducive regulations, government initiatives and a liberal visa regime that encourage expatriates to stay and pursue their entrepreneurial aspirations are all helping to change the business landscape in the UAE. To learn more about the way business is handled, you should visit compareyourbusinesscosts.co.uk/.
The economic slowdown following the long lockdowns on account of the pandemic left many expats unemployed.
Among them were professionally qualified and experienced individuals who decided to try their luck by setting up own small businesses funded by their end of service benefits, savings or a kind of crowdfunding.
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“Thousands of small entrepreneurs emerged, not by choice but by sheer necessity to survive. The proactive government here acted in time to put in place a strategy to support start-ups by offering incentives and a conducive environment with regulatory initiatives,” said Jamad Usman, chief executive and managing director of Emirates First Business Service, a business consultancy in the UAE.
Professional advisers also played a role. Rather than guiding them to invest in stock or other instruments that offer attractive returns, consultants encouraged NRIs to become entrepreneurs.
Liberal visa regime
In its efforts to make the UAE an innovation and technology hub, the government is offering extended visas for global entrepreneurs, and will provide funding and support to smaller businesses.
Under UAE law, foreigners can stay in the country for 30 days after their resident visas are expired or cancelled on losing jobs or getting terminated from services.
But government reforms have seen the introduction of an expat-friendly visa regime. Expatriates who have lost their job will be allowed to stay up to six months in the country.
The UAE also launched a new resident visa category, green visa, that allows residents to sponsor their parents and children up to the age of 25 years instead 18 years in the case of sons. The green visa will not be linked to work permits from companies and targets highly skilled people, investors, entrepreneurs, top students and graduates. The green visa is be open to investors, entrepreneurs and those running SMEs.
Freelance visas are granted to owners of independent businesses, or self-employed individuals. The freelance visa scope is expanded to provide flexibility for freelancers. As envisaged, professionally qualified and experienced employees can leave their employers and opt for freelance visa and offer services to companies who outsource them.
Earlier this year, the UAE introduced a system for five- and 10-year residency visas that allow expatriate investors and specialists to live, work and study in the country without a local sponsor. Then, the golden visa was introduced to retain professionals, highly skilled technicians and top-scoring students and their parents.
The latest is the launch of the United Global Emirates campaign aimed at making the UAE one of the world’s most dynamic, competitive and innovative business hubs.
Conducive environment
“One of UAE’s USPs is the country’s consistent efforts at creating an environment that allows ease for doing business. The evolving reforms like 100% foreign ownership, slashing of licence fees and the opportunities that will be available with the launch of Expo 2020 make it ideal for aspiring entrepreneurs to take the plunge and leverage the growth potential the UAE has to offer,” said James Mathew, chief executive and managing director of UHY James Chartered Accountants.
Mathew, who was also chairman of the Dubai chapter of the Institute of Chartered Accountants of India (ICAI) and group chief executive of Crowe Horwath, listed the incentives on offer:
- 100% foreign ownership, without the need for a local sponsor;
- Opportunities to maintain a high credit score enables easy access to bank financing;
- No corporate tax;
- Diverse selection of licences available for carrying out various economic activities;
- A liberal trade regime in the region.
Promising sectors
“If you are charged by entrepreneurial dreams and willing to take risk, the time is now to nurture that dream to be your own boss. The UAE has cleared the grounds to grow thousands of businesses. A conducive environment is created with regulatory changes that make starting businesses easy,” he said.
Mathew’s consultancy has held the hands of thousands of expatriates setting up businesses, mainly in the SME sector. They will need to get in touch with a hospitality law expert to proceed.
“My advice to NRIs keen to nurture their entrepreneurial dreams would be to: Do your research; Assess the market; Identify opportunities and analyse market risks; develop a business plan; Take small steps towards setting up a business that is sustainable and provides value through UAE’s initiatives and incentives. Focus on the business that you know and refrain from following the herds.”
Opportunities galore in trading, IT services, support services, maintenance services, construction-related activities, and advisory services. Technology is an evolving sector as the pandemic has accelerated the need for tech driven services.
With Expo 2020 around the corner, retail, hospitality, leisure, travel and tourism will be sectors that will witness accelerated momentum.
