- Newsletter
- October 15, 2018
International fintech investments saw a sharp upward trend and set a record with US$57.9B worth of investments across 875 deals just within the first half of 2018. This was a drastic increase from the US$38.1B invested in the year 2017.
This year’s first half saw the successful closure of two gigantic deals: US$14B raised by Ant Financial in Q2’18, which was quite record-setting and second was Vantiv’s acquisition of WorldPay worth US$12.9B in Q1’18.
The volume of the deals was very robust and spiraled up from 834 in H2 in 2017 to 875 deals in H1 in 2018. In addition, worldwide median volume of late-stage venture financings shot up to US$25M during H1in 2018, which was up from the US$14M annual median size recorded in 2017. Early-stage deal size also went up; it was earlier at a median of US$5M in the year 2017 and went up to US$9.2M at the mid of this year.
“Large deals at all stages powered fintech investment in the first half of 2018,” said Ian Pollari, Global Co-Lead, KPMG Fintech. “But just as notable is the breadth of investment. We’re seeing a mix of fintech sub-sectors drawing increasing interest, including data, AI and regtech — these horizontal capabilities have appeal across the full spectrum of the financial services industry.”
“Not only is more investment flowing into emerging technologies like AI and subsectors like regtech, we are also seeing efforts to combine fintech capabilities and embed them within broader digital transformation programs,” added Anton Ruddenklau, Global Co-Lead, KPMG Fintech.
All venture capitalists were positive about the start-ups in the space of funding fintech, but M&A activity also seems to be mounting as more and more established fintechs seek exits. The M&A activity currently has matched the most active M&A periods observed till date.
The highlights of H1 2018
- International fintech investment (PE, VC and M&A) has gone up to more than double. It stood at US$22B in the H2 of 2017 and it shot up to a record high of US$57.9B in H1 of 2018, pushed by nine US$1B+ mega deals.
- The top four fintech deals of Europe were worth US$22.4B in investment and included the UK-based Vantiv’s acquisition of WorldPay, which was worth US$12.9B
- In H1 2018, the investment in fintech companies only in Asia stood at US$16.8B with 162 deals, which was a raise from 119 deals in H2 2017.
- Fintech VC size has stayed at steady levels since beginning of 2015, going up to 653 deals in H1 2018.
- Median late-stage VC deal amount in the fintech sector drastically went up from US$14M in 2017 to US$25M in H1 2018.
US-based fintechs observed rise up in VC funding, crossing US$5B in H1 2018
In H1 2018, US fintech businesses pulled in US$14.2B worth of investments, which included over US$5B in VC investment. VC deal size kept increasing and went up from 276 deals in H2 2017 to about 328 deals in H1 2018, motivated to a large extent by the resurgent angel, seed and early-stage VC deals. Investors quickly invested in start-ups in rising fintech sub-segments, which included investment banking and regtech, and continuously poured in finances in mature, late-stage businesses such as Robinhood – whose US$363M was one of the biggest VC deals in H1 2018.
Biggest four deals in Europe were worth US$22.B
Total investment into fintech businesses in Europe touched US$26B with 198 deals in H1 2018, which was pushed by significant deals by WorldPay, iZettle, Nets, and IRIS software – which alone accounted for US$22.4B of this total. Though the deal value reached a new record high in Europe, the deal volumes came down from 268 in H2 2017 to 198 in H1 this year.
The UK was at the top in fintech investments in Europe with US$16.1B having charted about half of the top 10 deals in this region, though there were concerns regarding Brexit negotiations. Scandinavia’s fintech sector also did well, with the buyouts of iZettle (Sweden), Nets (Denmark) and Nordax Group (Sweden) figuring amongst the top ten deals in H1 of 2018.
The fintech sector of Asia touched US$16.8B because of Ant Financial deal
H2 2017 saw USS$2B which propelled the total fintech investments in Asia to a figure of US$16.8B with 162 deals in H1 2018 pushed by a huge US$14B Series C VC investments by Ant Financial. If we do not count this huge deal, Asia still recorded robust fintech investments in India, Australia, and Singapore which saw a quarter-over-quarter growth in overall fintech sector funding.
Following the footsteps of the worldwide trend, the median fintech VC late-stage deal size in Asia went up drastically in H1 of 2018 – shooting up from US$25M to US$37.7M, making it the highest seen in any region. AI and blockchain remained the main priorities for fintech investors in Asia, along with insurtech and regtech.
The payments and regtech sub-sectors came to the limelight
Payments saw a number of large exits in H1 2018 and emerged as one of the most established sub-sectors of fintech. This included successful IPOs by EVO Payments and GreenSky, Vantiv’s acquisition of WorldPay in the UK and Paypal’s acquisition of iZettle which was worth US$2.2B. Even the regtech sector saw a great start in the first half of this year with US$1.37B investments which have already left the 2017 total behind.
Blockchain has gone past the experimentation stage
Blockchain has been drawing in huge attention from global investors in the first half of this year with funding coming in for experienced companies and consortia planning to get added rounds rather than going to new market entrants. Huge rounds in blockchain companies were observed in H1 2018, which included US$77M to Ledger in France, US$100M+ rounds to R3 and Circle Internet Finance in the US.
Strong stance expected for fintech investments
With a huge chunk of capital still to be deployed, the fintech centers globally growing, more and more companies want to utilize fintech so as to drive further innovations, investments in fintech are surely predicted to stay robust by H2 of 2018.
- Newsletter
- October 11, 2018
Some special meetings were organized both in the Bahrain National Assembly’s lower and upper houses on Sunday and Monday, and its Council of Ministers and also the Shura Council have given a go-ahead to the draft bills for the unified GCC VAT Agreement and also the draft VAT law. The law which establishes the Bahrain tax authority, the National Agency for Gulf Taxes, is also now approved. The draft VAT law has already been printed in the Arabic language.
It has been decided that VAT would be imposed in Bahrain at 5%, which is the standard rate and is as per the unified GCC VAT Agreement, which is going to be effective from 1 January 2019, and will place Bahrain at the third spot in GCC country’s after UAE and KSA, to have implemented VAT. As per the draft VAT law, the VAT regulations are going to be printed within 15 days of the effective date of the law (i.e. by 15 January 2019) and would list down the detailed applications of this law.
The Main Features of Bahrain’s New VAT system
Under the draft VAT law, the most important features of the VAT regime in Bahrain are as follows:
VAT Registration – In Bahrain, the compulsory and voluntary registration thresholds depend on the unified GCC VAT Agreement. Organizations that fully make zero-rated supplies could be exempted from the need to register. Every company or individual who is involved in an economic activity inside Bahrain would need to calculate their forecasted yearly revenue beginning from 1 January 2019 to find out if they have to register or not. The registration schedule is going to be based on the value of taxable supplies where the larger taxpayers would have to register first. The detailed schedule or timetable would be shortly announced.
Zero rated supplies – Bahrain is following UAE’s footsteps where a big list of supplies will be zero rated. The export of various goods and services, global transportation of goods and also passengers, the supply of investment-grade valuable metals, the supply of some specific medicine and health equipment had to be necessarily zero rated as per the unified GCC VAT Agreement. Besides this, Bahrain would also zero rate preventive healthcare services, the supply of some precious stones like pearls, construction of latest buildings, educational services, and local transportation services. Unlike the UAE and KSA, Bahrain also plans to zero rate about 94 food items as per the unified GCC VAT Agreement.
Exempt some supplies – Just as the UAE and KSA, Bahrain would also exempt the supply of margin-based fiscal or financial services and the supply of bare land.
Government supplies – The government supplies will also be taxable only until they are in its capacity as a public authority.
VAT Group – Bahrain plans to allow all the businesses or companies in the same group to get registered as a tax group thus allowing a single company to file a VAT return for the complete group.
VAT Returns – The VAT returns need to be filed and submitted within a month after the end of a tax period, which will be at least one month.
Books and Records – All the books and records have to be maintained for at least a three-year period.
What are Bahrain businesses required to do?
Businesses in Bahrain would need at least three to six months to be prepared for VAT. But there is lesser time remaining for the VAT implementation in Bahrain, companies must ideally begin preparing for VAT as soon as possible. The most important areas that the businesses need to concentrate on to implement VAT within their business are as follows:
- Create a Project Plan: Develop a detailed budget for the VAT implementation (for example, consultants required, training, resources, IT systems needed), form a VAT steering committee and then allocate various responsibilities
- Spread Awareness: Educate and train one’s staff on the impact VAT would have on accounting and reporting processes
- Assessment of the VAT Impact: Take the VAT impact assessment and review the transitional provisions and categorize and map the VAT treatment of all business transactions
- Evaluate Cash Flow: Gauge the impact on cash flow and accordingly estimate the working capital requirements
- IT Systems: Review the capability of the existing accounting systems for VAT reporting and then think of upgrading or getting a new system
- Pricing: Review the impact of VAT on factors such as demand and pricing
- Contracts: Assess the existing contracts with various suppliers and customers and then include the VAT clauses in the new contracts
- Processes: Decide on the amendments needed to the existing AP (accounts payable) processes and documentation like invoices and record-keeping
- Customer and Supplier Management: Discuss with the existing suppliers and clients to inform them about the impact of the VAT and enter a negotiation with the new suppliers and customers
- Compliance: Decide if it’s required and then accordingly register for VAT on time
We at IMC, have strong expertise and experience of VAT implementation and have been doing it in the UAE and the KSA. We can help you in assessing how VAT would impact your business and accordingly guide you with the VAT requirements in Bahrain.
- Article
- October 9, 2018
Qatar is a small country located near Saudi Arabia. Despite This nation boasts of a very strong economy and positions itself as a great place to work. If you are thinking of establishing a new business, Qatar is a good choice in the Middle East. But are you confused about which sector to start your business in Qatar? After some research, we have prepared a list of some small business ideas in Qatar.
- Data Technology
If you are an IT expert, Qatar surely is a good choice. As per data, there aren’t enough IT professionals here and hence there is a huge opportunity in this field.
- Auto Wash and Repair
Car or auto wash and service or repair is another small business that can never go wrong. Most auto owners are busy people who do not have the bandwidth to clean their cars. Who would mind getting a proficient auto wash service provider? Opening an auto wash business is Qatar is surely a good choice.
- Excellence AND Wellness
The Qatar nationals are very fitness and health conscious. They have immense interest in following wellness and fitness regimes and the best example of this are the ladies of Qatar who like to stay fit as a fiddle.
- Sustenance’s and snacks
Another idea which cannot go wrong is offering nourishment and healthy snacks because, with the super busy schedules, people have no time for cooking. So, think of setting up a business that makes healthy snacks or imports handled sustenances and snacks, such as yogurts, energy bars, canned nourishment etc.
- Innovation Products
The Qatar nationals are crazy about hi-tech products and latest technology like cell phones, PCs, iPads, and tablets. And believe it or not, very few good stores and organizations offer these kinds of items in Qatar.
- Proficient Services
In Qatar, there is also a huge opportunity for experts and professionals like engineers, human resource experts, bookkeepers, building and development specialists, etc. So, if you an expert and have good knowledge in any of these fields, then you can think of beginning a business in Qatar, which provides administrational services to individuals and organizations.
- Eateries and restaurants
One of the biggest issues which these non-natives and tourists face in Qatar is difficulty in finding their own cuisines. Because of this, there is a huge demand for restaurants and eateries which offer outside luxuries. You can set up an eatery offering just Chinese, Italian or American cuisine or an extensive and lavish variety of cooking styles.
- Support Services
There is also a big need for proficient support administrations for mechanical, cooling, aerating, electrical, plumbing, and other offices. Using some support service providers is a reasonable and more efficient option; hence, here too lies a big business opportunity.
- Building and Construction Material
As a rapidly developing country, Qatar sees lots of new buildings, structures and framework being raised every other day. There is no doubt that construction material is a huge market in Qatar.
- Real estate business
Qatar has also been experiencing rapid and unbelievable growth in its population, number of immigrants, new businesses, and also the per capita income, thus creating a perfect ecosystem for new entrepreneurs who wish to start some new business in the field of real estate as more and more residences and also commercial spaces are in demand.
- Car rental business
Most tourist places are often quite difficult to reach if you use the public modes of transport. Hence, many foreign and also domestic tourists prefer to rent a car rather than use public transport. This gives rise to the opportunity of car rental business in Qatar, which can help various international and domestic visitors to see and explore many tourist spots and places conveniently.
- Clothing
Clothing is always a business idea that is ever-green and never goes wrong. As the working population is mostly busy with their commitments, they often have little or no time for thinking a lot about clothing. Beginning your own clothing business is a very simple and great idea, which doesn’t need a lot of cash flow too.
- Corn Roasting Business Plan
Corn cooking and roasting is another profitable business that requires minimal effort. That’s not all. Anyone can start this business with very low investment and low maintenance premise. Broiled corn is a great choice as a healthy snack and one can offer various creative versions to their customers.
- Conveyance Business
Conveyance benefit organizations have quickly become popular around the world. This kind of business helps busy people to have some free time on hand. You can avoid stepping out or driving to a store and just get things that you need at your doorstep. In addition, it’s much more beneficial if you can get these services on the internet or online. So, think of a conveyance administration of most important items and start a business.
- Interior Designing Business
Many people dwelling in Qatar aim to live their lives amid luxuries. One way to quickly achieve this is getting your house designed by one of the best interior designing firms. You can even get interiors designed for your office space, shops, stores, and other workplaces. This industry has also been continuously growing in the country. Hence, starting a business into interior designing in Qatar is a great decision, especially for people who have an impeccable taste in art, designing or decoration.
- Business of Laundry
This is another business that is credit crunch-free and can be easily started in Qatar. Because of lack of time and energy, most people living in Qatar prefer to give their clothes to laundry services. You can think of starting an online laundry business, which may be available on a mobile app and you could link the customers to their washers or service-providers easily. This allows you a big amount of commission and is hassle-free, besides needing a very small capital for starting the business.
Some of the other best business ideas in Qatar in 2018 are as follows:
- Investing money in real estate
- Financial consultation services
- Content and resume writing services
- Transportation business
- Innovation products business
- Leasing
- e-Commerce or delivery business
- IT and computers
So if you like any of these ideas and are thinking of company registration in Qatar, our professionals can there to help you with it. Just get in touch with us and we will help you get started.
- Article
- October 9, 2018
Oman shares borders with major oil-producing countries like Saudi Arabia, United Arab Emirates, Yemen, Iran, and Pakistan and is greatly influenced by their business and economic activities.
In recent times, these neighbouring countries are shifting their focus from oil production sector to fintech, technology, and other service sectors. Being influenced by them, Oman is also taking part in the rally and is inviting with open arms investors who are willing to invest in the businesses in Oman and looking for new opportunities.
As per Arabian Business News, Oman’s economy is projected to grow by 5.2% in 2018. This is another compelling reason for investors to invest in Oman. The government is also currently focusing on foreign direct investment to increase the potential GDP of the country.
Muscat, the capital of Oman is also the largest city in the country. It is also a great place to start up your venture owing to the modern infrastructure network, easy access to global markets, secure and stable investment environment, educated and skilled workforce, strong economy, strong international networking and trade agreements.
If you are planning for establishing a business in Muscat Oman, here are some of the most profitable business ideas for the Oman market
1. Technology Based Company
There is a vast scope in technology based startups in the middle east, specially in Muscat Oman. You can invest in technology based startups in the country like app based transport like taxi service, food delivery, mobile app grocery stores, fitness products, e-commerce and much more.
2. Travel and Tourism Business
With the government taking major efforts for the betterment and progress of travel and tourism, this sector is flourishing in the country. If you set up your own tours and travel company, the initial investment would just be the rent of the office, license for becoming a tourism conductor, office interior cost and salary of employees. This business has a huge potential for long term growth.
3. Event Management or Celebrity Management Company
Muscat is popular for its lavish parties, grand weddings, celebrity events, sports events and much more. So, if you are good at managing and organizing different events and have good contacts in the entertainment industry then it is a great business opportunity. To add on, the profit margins in this business are really high.
4. Facility Maintenance Company
With a growing number of companies in Oman, facility maintenance can be a great business idea to reap profits. All you have to do is form a company which can assist other companies in cleaning their facilities, fixing electrical faults, fixing plumbing issues, maintain their power plants, etc.
5. Commodity Store
It is a thriving business to deal in commodities in Oman as the country greatly depends on imported goods. You can make good returns if you can manage to import these commodities at cheaper rates and stock them at your store. In order to attract more customers and scale your business, you can deal in multi-brands and multiple products.
6. Restaurant
If you want to go for a safe bet, you can invest in the restaurant business in Oman. You can introduce your own unique local taste and cuisine to the country and make people revisit your restaurant. Moreover, you can attach a bar to the restaurant in order to maximize more profits.
7. Certification Agency
Another brilliant idea is to have a certification agency in Oman. It has a lot of value and attention as it is a mandatory requirement by the government for most of the businesses. You can start a business along with a small team of professionals and start providing consultancy services for the certification process. With growing start-ups in Oman, the need for certification will also increase and in turn, there will be more market for your business.
The above mentioned are some of the most booming business ideas and investment opportunities in Muscat Oman. If you need any assistance with company formation in Oman, you can get in touch with IMC Group.
Government stimulus and Tenth Five-Year Development Plan (FDP) for 2021 to 2025 in Budget 2021
To fight against the economic slump caused by COVID-19 and help sustain the non-oil sector through new company formation in Oman, the Government has announced relief measures and waived levying of taxes from tourism and municipality taxes, pending rent of factories operating in industrial areas, penal measures on expired labor cards including reduction of shipping and handling fees.
The 10th FDP narrates the first executive plan for making way to realize the vision 2040 which is considered as the beginning of the attainment of fiscal sustainability and economic growth. The plan focuses on prioritizing spending as a result of many adverse implications in the local and global economic situation and ensures high economic growth and financial prosperity.
The objectives of the 10th FDP are
- Enhancing sustainable human development and preserve human capital
- Realizing balanced development and improve the income of citizens
- Promoting economic diversification
- Attaining financial sustainability by developing ma macroeconomic environment
- Supporting the role of small and medium enterprises
- Providing economic stimulus by partnering with the private sector
Economic diversification mechanisms and programs are the essence of the FDP and focus on an increase in the participation and contribution of non-oil sectors and activities. The plan aims for growth in the GDP of non-oil sectors and focuses on sectors such as hi-tech manufacturing industries, agriculture and fisheries, fish farming, food processing, transportation, travels and tourism, and logistics.
Takeaway
Every crisis comes with an equal opportunity, investors believing in this adage have taken out money from their other portfolios and are exploring opportunities in high technology growth-oriented businesses for investment. Therefore new business set up in Oman now can be well-timed and hugely rewarding.
As many SMEs were forced to put down their shutters due to covid lockdown, new businesses can now afford to look at the future with a positive mindset filled with beliefs for a flourishing economy in the recent future.
The government and many business owners believe that sectors that were among the most damaged during COVID-19 such as travel and hospitality have a greater chance to come back stream and row over the next few years. Human skill coupled with strong willpower will help Oman successfully navigate the adverse economic trend of 2020, the Government of the Sultanate of Oman believes.
- Article
- October 5, 2018
Singapore is one of the fastest growing economies of the world. One of the prominent reasons for the growth is the ease of doing business in Singapore. Moreover, the process of company registration in Singapore is also very smooth and simple. Considering such conveniences, more and more companies are trying to explore the opportunities and establishing businesses in Singapore. In fact, it has always been an investment hub for investors from across the globe. Singapore is now planning a new bill that will attract larger funds. It is giving an opportunity to investment managers to register their funds locally as they look to tap the $69 trillion global asset management industry.
Need to Introduce the Bill
The government observed that Singapore has many offices of asset managers yet their funds are registered in the offshore jurisdiction. Therefore, the new corporate bill that is introduced in Parliament aims to provide flexibility to the asset managers in this regard. The Monetary Authority of Singapore aims to utilize the flexibility for both traditional and alternative strategies. In addition, Singapore is also offering many business start-up schemes and grants to promote business in the country.
Intend of the Bill
The bill intends to focus on the variable capital company framework. This will enhance the safeguard as each fund will now have to be segregated into assets and liabilities. Furthermore, the Monetary Authority of Singapore has clarified that the bill will allow the funds to use both Singapore and International Accounting Standards.
According to recent data, assets under management in Southeast Asians countries rose by 7% to $2.7 trillion in 2016. Therefore, global fund managers like Fidelity Investments and Blackrock Inc. are capitalizing on the new bill and taping the growing economy and wealth of Singapore. Furthermore, the growth of fund domiciliation will provide a boost to a wide range of service providers that include lawyers, fund administrators, accountants, etc.
The new bill takes into consideration the public feedback that was received in the year 2017 and features of similar structures in other countries. The bill will become a law after it will be passed by the parliament and President approves it.
With the passing of this bill, Singapore will be the new hub for larger funds. The funds that are domiciled in offshore jurisdiction continuously face the risk of scrutiny. Therefore, with this new bill, Singapore will become more marketable for a very simple reason that the country focuses on delivering transparency and protection to the funds domiciled.
Lastly, the Monetary Authority of Singapore is actively taking new measures to become a leader of Asia’s fund management and counter the competition from cities like Hong Kong. With the focus on growth, last year Singapore simplified the regulatory norms for venture capital managers and consulted in the relation of the licensing requirement to allow digital advisory services.
- Article
- October 4, 2018
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- Newsletter
- October 1, 2018
SEBI is the market regulator in India and it has revised Know Your Client (KYC) norms for Foreign Portfolio Investors (FPIs) stating that residents, as well as non-residents, can now hold a non-controlling stake in such entities. SEBI has recently issued revised two circulars pertaining to the KYC requirements and their eligibility conditions for Foreign Portfolio Investors.
These circulars were issued by the SEBI after a panel suggested certain changes to the FPI guidelines that were proposed earlier. The changes have been brought after understanding the concerns of a certain market segment regarding the difficulties that overseas funds might face while ensuring compliance.
With the new KYC norms in place, NRIs, OCIs (Overseas Citizens of India) and RIs (Resident Indians) are now been permitted to hold a non-controlling stake in FPIs. According to the regulator, there would not be any restrictions on NRIs, OCIs, and RIs to manage non-investing FPIs SEBI-registered offshore funds as well as registered investment managers.
On fulfillment of certain conditions, these entities are eligible to be constituents of FPIs. If the assets under the management in the FPI are held by NRI/OCI/RI either singly below 25 percent or in the aggregate form below 50 percent, then such entities would be allowed to be constituents of the FPI. An NRI, OCI or RI can directly or indirectly own a non-investing FPI.
SEBI has further noted that NRI, OCI or RI shall be free from the restriction that they should not be in control of FPIs that are offshore funds and for which no objection certificate has been issued by the board as per the terms of mutual fund regulations.
For compliance, the existing FPIs and new applicants shall be given a time period of two years from the date of new rules coming into force or the date of registration, whichever is later. However, if there is any temporary breach, a time period of 90 days shall be given to ensure compliance.
SEBI further said that a list of beneficial owners must be maintained and provided by the FPIs under category II and III. Beneficial owners are the person who controls or owns an FPI. They are divided into three classes on the basis of their risk profile. The FPIs belonging to high-risk jurisdictions may apply for a lower threshold of 10 percent for identifying beneficial owners and ensure KYC documentation that is applicable to category III entities. SEBI further said that a beneficial owner must not be a nominee of another person.
SEBI further clarified that senior manager officials are the ones who hold a senior management position and take key decisions relating to FPIs must be identified and disclose their personal information.
SEBI stated that where the companies and trust provide services of lawyers, accountants, etc. to FPI must provide the information such as real owners of such service providing entities.
The new rules shall be applicable to the investors of the P-Notes or Participatory Notes. The KYC documentation in relation to category III FPIs shall require an annual audited financial statement or a net worth certificate from the auditor. However, such documents are exempted during investigations or an enquiry.
In relation to the exempted documents, FPIs must submit an undertaking that the relevant documents would be submitted to the designated depository participants or custodians upon demand by regulators or law enforcement agencies.
The custodians should preserve and maintain the records of concerned FPIs for at least five years from the date of cessation of the transaction. In addition, if there a litigation going on, such records must be maintained until the completion of the proceedings.
The regulator shall give FPIs a period of 180 days to comply with new rules. On failure to comply, a further 180 days shall be given to close down their existing positions.
FPIs under category II and III registered prior to the current circular must disclose the list of beneficial owners and other KYC documents applicable.
Former RBI Deputy Governor H R Khan and public comments on the draft proposals headed the panel to prepare the final guidelines.
- Article
- October 1, 2018
To boost the economic growth of the United Arab Emirates, the government is bringing some major changes into their policies. The seven state federation is looking to bring changes that allow the foreigners to obtain long-term residency visa of UAE after their retirement. The new law will come into force with effect from 2019.
The new law shall be applicable to the residents who retire above the age of 55 years and the visa will be valid for a period of five years. The new policy shall also give the option of visa renewals to the residents. To qualify for the renewal visa an individual must have an investment of worth 2 million dirhams in a property or savings of not less than 1 million dirhams or a permanent income of at least 20,000 dirhams per month.
This step is considered as a great move forward for a member of the six-nation Gulf Cooperation Council. They generally do not allow or permit expatriate workers to stay in the country beyond the limit of work permit.
Qatar in recent days has also made permanent residency an option for foreigners. This step would grant the foreigners an access to the welfare system and commercial rights that were earlier reserved only for its citizens.
In addition to the new policy, the UAE government has also decided to grant some benefits to the industries by cutting the electricity fees. The service connection for the new factories shall now be waived. The cost of electricity for large factories shall be slashed by 29 percent. Furthermore, the electricity fees for small and medium factories shall be reduced by 10 percent from 22 percent.
The vice president, prime minister of UAE and ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum, believes that improving the competitiveness of the country is a journey that has no finish line.
For any assistance related to Dubai visa services, you can get in touch with IMC Group. We have a qualified and experienced team of experts who can take care of your visa related issues so as to make the entire process hassle-free and smooth.
- Article
- October 1, 2018
Do you dream of having your own venture in Kuwait? If your answer is yes, then we must tell you that Kuwait is surely a very good choice to start your business in Kuwait offers various investment opportunities to budding entrepreneurs because of its strong economy, supportive government, and ease of doing business because of certain laws and regulations. The Kuwait government has come up with corporate laws and legislation, which push foreign direct investment into the country. The main sector in Kuwait is oil and gas. But if you are looking at small investments and oil and gas sector does not suit you, there are many other options too.
Kuwait is the fourth richest country as per the world capita income and is the second richest GCC country according to the per capita. So rest assured, whichever sector you opt for Kuwait company incorporation, the chances are favouring success only. The entrepreneurs in Kuwait seem to own the majority of country’s wealth and also a big chunk of customers along with a rising demand for different products and services.
You can consider setting up your business, where either you sell some particular product, which is highly in demand or provide some services. However, detailed market research is a must before stepping out to start. One must zero down on some product or service, which is in high demand. After you make a list of shortlisted ideas, then it’s important to evaluate it well.
We have also done some research on the Kuwait market and have listed some lucrative ideas for a startup.
1. Eateries and Restaurants
Majority of the people staying in Kuwait are immigrants from other nations. Opening a multi-cuisine eatery or restaurant is a sure-shot winner. The more customers you eventually have shows high revenues and profits. So, what are you thinking of?
2.Franchise
If you are not someone who wants to risk it big, then consider buying a franchise of some known business, store, etc. You must select a suitable area to set up your business, and then decide the product in demand in that locality. Then decide and take the franchise of that product or service. Example – school franchise, a restaurant or café franchise, salon franchise etc.
3. IT or Hardware Management Services
There are many small organisations in Kuwait, who contract out their IT or other administration work to experienced people or professionals and are ready to shell out a decent amount for it. So, this could be another great idea. Start your IT and Hardware Management Services company and then you can get in touch with companies, which are wanting to outsource this kind of work.
4. Online Services
With busy schedules these days, people usually prefer to take services and even buy products while sitting at home. So how about providing some online services? Think of something you are good at or hire some resource to manage that work.
5. Specialty school
These days, parents look at the holistic development of their children, which goes beyond bookish knowledge. How about opening a specialty centre or school for children offering some special courses on some skills, sports, languages, arts, etc. After setting up a business, an advertisement is also important so that parents are aware of your offerings and unique selling points.
6. Clothing and Accessories
Though there are many online sellers for clothing these days, offering trendy yet classy clothing at a reasonable price range is a win-win situation. If you also keep a tab on the latest trends in the market and then decide on your styles, then the risk gets lesser and your chances to profits increase. Adding accessories to match your clothing styles could be another big hit as the customers won’t have to go to various stores to buy different things.
7. Event Management
These days, people like to outsource the celebration of their special occasions like birthdays, wedding, anniversary etc to give it a professional touch and also make it hassle-free for themselves. Due to this reason, opening an event planning and management agency is also a fabulous idea. The better and innovative your ideas, the more you can charge.
8. Printing Business
Everyone is done with old, traditional gifts these days. One can also think of setting up a printing business, with a twist. Offer some customized options like printing pictures and personal messages on a coffee mug, photo frame, visiting card, or T-shirts. This can surely attract more customers and hence promise you definite revenues.
9. Bakery
Cash on people’s sweet tooth! Who doesn’t like desserts and pastries? If you think you can do good baking, then consider starting your baking business or hire an expert in this line who can work for you. Investment in this field is not much but it promises to get you big revenues.
10. Import Business
The import business can also open up many opportunities for you. For example, you could import any items which remain high in demand, even if it’s already there in the market. Try to find out what could be such products and find the process to import.
11.Stock Brokerage Firm
Kuwait is also a haven for a thriving stock exchange market. In fact, Kuwait’s stock market is the second largest in the whole of the Arab world. So, if you have a license and have experience and training into stockbroking, then start your stock brokerage company in Kuwait Believe us; the profits are huge in this line. The benefit is that any common resident of this nation is usually well-informed regarding the stock exchange market and the majority of the people invest big portions of their income in this market.
12. Car Wash Business
Another idea which is easy to manage and setup is car wash or service business. It does not need any technical know-how as such and any cheap labor or resources could be easily trained to do this work. The only thing to take care is the location you choose and the offers you come up with.
13. One-Stop Shop for Technology
One-stop shop for technology is a business idea, which is still new in Kuwait but it promises to be very profitable. If you are good at IT and the latest technology, consider setting up a one-stop technology shop in Kuwait. It will be a place which is a solution for all your technology-related requirements. Be it any latest gadgets like Smart Phones, Tablets, Pen Drives, Memory cards, etc, you will find them here. Or if you need some guidance or help in fixing or configuring your laptop, phone, etc. this will be your go-to place.
14. Online English language tuitions
English is now considered as a second language in this country and people need to gain fluency to operate in their offices and workplaces. So in case you are an expert in this language and you think you can teach it well, then don’t waste a minute. Start your own business of teaching this language using online modules. You could use Skype or other easily available platforms. But once you are successful, you could make your own website and academy and hire professional tutors.
Here are some more small business ideas in Kuwait that one could think of setting up:
- English Language School
- Real Estate Business
- Content and PR agency
- Eye and Dental Clinic
- Agro Allied Manufacturing Company
- Pet Counselor
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