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Diplomatic Breakthrough Will Open Floodgates Of Opportunities in UAE Israel Cross Border Investment
  • Newsletter, U.A.E

Diplomatic Breakthrough Will Open Floodgates Of Opportunities in UAE Israel Cross Border Investment

Recent diplomatic breakthroughs between the UAE and Israel have come as a boon for the UAE and Israeli businesses, and also to the other business communities in the MENA and the MEASA regions.

The UAE and Israel signed an agreement in August, 2020 and as per this agreement, the UAE and Israel will establish full diplomatic relations and the UAE becoming the third Arab nations, besides Egypt and Jordan, to fully recognize Israel.

On 20th August 2020: the UAE President Sheikh Khalifa Bin Zayed Al Nahyan issued Federal Decree-Law Number 4 of 2020, abolishing a ban on business and trade dealings that was in force since 1972.

“Trade and investment prospects for the UAE and Israel are a ‘dividend of peace ‘ that will strengthen the newly forged ties between the region’s two most innovative economies,” said Abdulla Bin Touq, the UAE Minister of the economy.

“The prospects of trade and commerce between Israel and the UAE are exciting for both countries,” Mr Bin Touq said in an online seminar organized by the US-UAE Business Council. He also highlighted that the two most powerful economies now trading and working together will give rise to endless economic growth possibilities in the region.

The UAE has long diversified from the hydrocarbon-based economy prevailing in the Gulf region and despite having the 8th largest reserves of oil, only derives 30% of its economic output from oil and remaining 70% coming from fintech and financial services, innovation and technology, construction and real estate, and defence. 

The UAE is also a strategically located nation connecting the East to the West with developed logistics support of free zone ports and two reputed Airlines, Etihad and Emirates. It is also a very progressive economy with high levels of foreign investments, extensive double taxation treaty arrangements and business digitalization, and has already established itself as a world-class hub for global businesses and commerce.

Dubai International Financial Centre (DIFC), the special economic free zone with its independent regulatory framework and judicial system, and 100% foreign ownership of companies have given the global economic prominence to the UAE. It is considered as one of the leading financial centres in the world and ranks 14th in the Global Financial Centres Index and higher than Frankfurt, Paris, Zurich, Chicago and Luxembourg.

DIFC, as a free zone is one of the most lucrative business destinations for foreign multinational business entities today and many startups, and established businesses are opting for DIFC company formation.

There are many special economic free zones in the UAE and especially in Dubai accommodating businesses from different sectors such as healthcare, media, technology, logistics and others. The UAE Government with a futuristic mindset also offers lots of incentives to prospective entrepreneurs for the business setup in Dubai.

Israel is an economically developed and technology-driven country with a free market economy. The country ranks first in the availability of scientists and engineers, the number of startups per capita, and venture capital investments per capita. It is considered a high-income country by the world bank.

There is immense potential for business opportunities and economic cooperation between the UAE and Israel in various sectors including logistics, aviation, Agri technologies, green and renewable energy, and food and water security.

The UAE was looking at eight trade and economic agreements with Israel including double taxation and free trade agreements before signing the Abraham Peace Accord in Washington.

Mr. Bin Touq said, “we are already seeing reports of Israeli firms signing deals with Emirati firms and we anticipate a host of joint ventures in almost all sectors.”

This diplomatic peace accord between the UAE and Israel has been an unprecedented and remarkable move in promoting business and humanitarian development in the Middle East region and the overall prosperity of mankind.

It was a memorable day when the first UAE Israel linked commercial flight landed in Abudhabi on 31st August.

Innumerable benefits in cross border trade and investment and in sectors related to health and pharma, tech and innovation, tourism and travel, and agricultural technologies exists between the two countries and will prosper with each passing day. Even Israel will benefit greatly from secure energy supplies from the UAE.

It is hoped that more Gulf countries follow suit and take the path of normalizing relations with Israel for a better cause of wealth creation, peace and harmony, and sustainable development of our world population.

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ZOHO Books and Implementation in UAE
  • Article, U.A.E

ZOHO Books and Implementation in UAE

The concept of online smart cloud-based accounting was first put into practice in 1998, and since then, there have been many innovative software developments to bring it to today’s maturity.

ZOHO Books is a smart cloud-based online accounting software that has become most popular amongst all accounting services in Dubai.

Features of ZOHO Books

ZOHO Books, an online cloud-hosted accounting software primarily designed for growing Small and Medium enterprises. It has features to automate and integrate business workflows and help manage your finances in a very timely and effective manner. Apart from being an end to end accounting solution, it is integrated with more than forty basic ZOHO applications and other company software.

Main features of ZOHO Books are

Main Features of ZOHO Books
  • End to end application covering all stages of business process stages
  • Can be easily integrated with all cross-functional applications
  • A collaborative software as ZOHO Books CRM can facilitate communication with customers
  • Intelligent and intuitive user interface organizing tools in clear sections and interlinking pages for easy navigation and help save lots of time
  • Time tracking with timesheet modules for tracking time spent in completing projects
  • Contact management features instant customer support through customer query mitigation and narrowing down the gap between sales and support teams
  • Once activated, the automatic bank feed fetches all banking transactions from your listed banks on a daily basis, by default
  • Have an option for creating customized reports by integrating ZOHO Books reports
  • Once a bank rule is created by defining transactions, all your banking transactions are automatically categorized

Advantages of ZOHO Books

ZOHO Books is always your preferred and better choice for accounting.

  • The intuitive interface makes it very easy and convenient for use
  • Zoho Books pricing is one of the lowest in this category, making it most lucrative and affordable for you
  • It is very robust and accurate software and help prevent accounting blunders and keep you within regulations and standards
  • The mobile application helps you to continuously track the financial status of your organization without a laptop and even when you are moving and can be run on both android and iOS
  • All your accounting needs can be comfortably met with this software and help you save money and increase customer base. Payables & receivables, inventory, Payroll, and VAT management can be easily and comprehensively done

ZOHO Books Implementation in UAE

Whenever any new system is employed, the need for experience and expertise arises for the successful implementation and maintenance of the new system.

As ZOHO Books are gaining wide acceptance and popularity, ZOHO Analytics initiated ZOHO consulting partners program to equip the consulting partners with the necessary skills and expertise and for providing customer solutions around ZOHO Books. On successful completion of this program, all consulting partners are certified and approved as ZOHO Books consultants.

ZOHO Books consultancy services in UAE provide complete implementation through

  • Analyzing customer needs and business processes and creating prototypes
  • Implementation and Customization of ZOHO Books through necessary selection and integration of essential ZOHO books from forty plus products, e.g., CRM, Projects Campaign, etc.
  • Training on ZOHO case studies and customer success stories
  • All-time customer support for ensuring continued maintenance
Though primarily created for SMEs and start-ups, ZOHO accounting software is equally applicable and useful for large enterprises.

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DIFC DFF Collaborate for Making 10x Dubai, The Leading City in the World
  • Newsletter, U.A.E

DIFC DFF Collaborate for Making 10x Dubai, The Leading City in the World

“Dubai International Financial Center (DIFC) is a special economic free zone in Dubai and founded in 2004. It is the financial hub for the Middle East, Africa, and South Asia (MEASA) markets. DIFC has a large business community with its own independent regulatory framework and judicial system.”

“Dubai Future Foundation (DFF) is a government foundation established in 2016 that aims at shaping the future of the strategic sectors in cooperation with the government and private sector entities by endorsing innovative capabilities and launching Initiatives.”

DIFC signed a memorandum of understanding (MOU) with DFF in September 2020 in order to reaffirm its commitment to driving the future of finance.

The agreement between two futuristic government bodies will advance and boost the innovation agenda within Dubai and engage the financial technology community through setting the stage to enable and support growth opportunities and appropriate training activities. DIFC’s priorities and  DFF’s mission aligns perfectly to collectively imagine, inspire, and design Dubai’s future.

The financial services sector is the 3rd largest contributor to Dubai’s GDP and is expected to grow steadily as DIFC becomes a major part of the Dubai future district, the region’s largest future-focused district. Companies looking to establish businesses in DIFC must apply for registration and necessary permission for DIFC company formation.

The key initiative for Dubai’s future district is DIFC’s innovation license for startups for boosting innovation, creativity, and entrepreneurship. DFF will actively support this program of the DIFC Innovation License. This shows the commitment of DFF to closely work with DIFC in furthering the future of finance in Dubai.

This will usher the combined technology acceleration program and facilitate identification and support for blockchain and AI-driven startups to put these initiatives on a high and aggressive growth path. The combined move will bolster the 10X Dubai vision enabling the Dubai government to be 10 years ahead of all other cities by adhering to disruptive innovation.

The MOU signed between DIFC and DFF also highlights the launching of technical training programs at DIFC Academy, including coding courses like Full-stack Web Development and App Development. These training programs will ultimately support DFF’s 1 million Arab coders initiative, launched by Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai. Apart from training, the two forward-looking government bodies will also collaborate on Research and Development activities with leading research and technical institutions.

Arif Amiri, the CEO of DIFC Authority, described the recently signed MOU by saying, ” As the leading financial hub in the MEASA region, our eyes are firmly on the future. We are committed to driving the growth in the finance sector by embracing innovation, technology, and training.”

Arif Amiri also said, ” Investing in Human Capital initiatives with the Dubai Future Foundation is incredibly important. It underscores our long term commitment to make Dubai a leading business city of the future aligned with the national government agenda. Together, we can ensure Dubai’s sustained prosperity and accelerate the Emirate’s development journey.

“We look forward to combining forces to drive the future of finance.”

Khalfan Belhoul, Chief Executive Officer of Dubai Future Foundation, stated, ” Through our strategic partnership with DIFC, we are confident that the positive outcomes would create impact not only for the respective organizations but also for the region and its economic growth.”

Khalfan Belhoul also said, “By working closely with DIFC, we seek to accelerate business opportunities for the region, attract startups and talents, employ innovation and technology to further- enhance and generate a robust financial sector and provide the right tools and skillset to enable a future-ready generation.”

He described the MOU saying, “This partnership is a testament of our unified vision and commitment to positioning Dubai as a knowledge-based economy and to the pivotal role the UAE plays in driving its financial industry globally.”

DIFC is the largest and most advanced fintech hub in this region, transforming and diversifying the financial services industry. The continued focus on innovation in the fintech sector is acting as the backbone of Dubai’s ambitious and aggressive growth plan.

DIFC houses more than 200 fintech establishments, which enjoyed rapid growth during 2018 and 2019. DIFC focuses on and closely works with regional and international stakeholders in developing a solid digital infrastructure to mark its presence as the regional financial center.

DIFC has a global financial exchange and access to funding. It offers a dynamic business environment with a skilled workforce and vibrant business community much conducive for new business set up in Dubai.

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Post-Covid Economic Recovery-Dubai Chamber and Canadian Consulate Meet on Collaborative prospects in Digitalization, Logistics, E-commerce, Life Sciences, and Sustainable Technologies
  • Newsletter, U.A.E

Post-Covid Economic Recovery-Dubai Chamber and Canadian Consulate Meet on Collaborative prospects in Digitalization, Logistics, E-commerce, Life Sciences, and Sustainable Technologies

A high-level meeting through video conferencing was convened between the Canadian consul general in Dubai and the Dubai chamber of commerce and Industries on 7th of September, 2020 towards post covid economic recovery through collaborative efforts in digitalization, logistics, e-commerce, life sciences, and sustainable technologies.

H.E. Hamad Buamin represented the Dubai chamber of commerce and industries as President and CEO, and H.E. Jean-Philippe was present as Canadian Consulate General in Northern UAE.

Both leaders reflected upon the rapidly growing trade and business relationship between UAE and Canada, emphasizing Dnata launching ground handling operations in Vancouver Airport and D.P. world’s $ 8.2 billion co-investment platform with Canada’s pension fund, Caisse de depot et Placement du Quebec for expanding its global port and terminal operations.

H.E.Buamin, on behalf of the Dubai Chamber of commerce and industries, reiterated Dubai’s huge incentives offering a great competitive advantage to foreign companies and investors for their Dubai Company Incorporation and enhancing Dubai’s credibility in value proposition in recent times. He also praised the Dubai government’s rapid and proactive response in addressing post covid challenges and speeding up digital transformations to facilitate businesses smoothly sail through post covid situations.

H.E. Buamin described Canada as the UAE’s strategic business partner. He also highlighted Dubai as one of the most preferred global investment and business destinations, frequently leveraged by Canadian business enterprises.

Canadian Consulate General, H.E. Jean- Phillippe Linteau heavily admired the Dubai chamber of commerce and industries for its leadership role in promoting Dubai as the most sought-after global business center, especially during post covid period. He also highlighted that increased digitalization in Dubai certainly helped in post covid period and narrowed down the geographical distance between Dubai and Canada. He also clarified that Dubai has already been regional headquarters for many Candian business houses as one of the most lucrative business destinations in the world and the numbers of such regional Canadian business headquarters with business set up in Dubai would only grow in recent future owing to the strong and ever-increasing business ties and bilateral relations between the two countries.

The Consulate General of Canada, H.E. Jean- Phillippe Linteau, also expressed his desire and put his hopes for increased Dubai-Canada bilateral and business ties in more strategic areas of energy, infrastructure, and life sciences. As per him, the two countries Dubai and Canada, are truly committed and should work together during the post covid era for establishing a robust, more resilient global economy.

H.E. Hamad Buamin seen equally enthusiastic who put his entire trust on the great potential of Canadian business entrepreneurs and their Dubai based business counterparts to focus and innovate on high and smart technology areas very rewarding for both countries and ultimately for the entire globe.

Dubai UAE has always enjoyed a great relationship with Canada since 1974, the year UAE got independence and strived towards improving business and bilateral relationships with Canada. UAE and Canada have deep business, and bilateral relationships mainly focused on building upon the prosperity of two societies, strengthening global and regional security, and effectively contributing to the economic and social development of third world countries and empowering women.

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DP World and Dubai Customs engaging in Business Opportunities with Israel
  • Newsletter, U.A.E

DP World and Dubai Customs engaging in Business Opportunities with Israel

To establish stronger ties with Israel; Dubai state owned D. P. World, a  global company providing end to end smart logistics solutions, and Dubai Customs is in a continuous quest for bilateral business opportunities between the two countries and already signed a series of MOUs in this regard.

DP World Chairman and CEO, Sultan Ahmed Bin Sulayem has already signed the memorandum of understanding with Dover Tower owner Shlomi Fogel, an Israeli businessman, for partnering on joint development of Israel port Haifa in the Mediterranean and also opening a direct shipping line between UAE and Israel port Eilat in the Red Sea. The Newly planned trade route helps develop Dubai Multi Commodities Center (DMCC) and DMCC company formation.

Dover Tower is an Israeli company engaged in developing ports and shipyards and also owns Israel shipyards and port of Eilat. DP World, UAE, operates a number of ports in varied locations from Hong Kong to Bunes Aires and is keen on exploring joint investment opportunities in areas of infrastructural development of two countries. The engagement also aims for sustainable peace and stability in the middle east.

Three main areas of cooperation between the two countries are covered under MOUs. Firstly DP World will engage in the development of Israeli ports and free zones and assess the potential for establishing a shipping line from Eilat to Jebel Ali; Second, Dubai customs will assist in promoting private trade and businesses by adhering to customs best practices and continuous innovative processes; and third, the Drydocks World, Dubai with its largest ship repair facility in the middle east will explore business opportunities with Israeli shipyards and develop, manufacture and market International Shipping and Logistics (ISL) products in partnership with Israel.

As per Chairman and CEO of DP World, Sultan Ahmed bin Sulayem the MOUs would help in tapping trade and economic cooperation opportunities and promote development focussed ties between UAE and Israel. He also stated that the DP world’s mission is global trade between UAE, Israel, and other countries and invited business enterprises from other countries to come and participate in Dubai company incorporation.

Shlomi Fogel, Chairman, and owner of the Dover Tower group, a shareholder of Haifa shipyard and also the owner of Eilat port, described his company’s collaboration with DP world as a matter of great honor. He also took pride in the mutual vision and friendship of the two companies and expressed his desire for a strategic partnership that would impact global trade and economy and strengthen the business relationship between Israel and UAE. He described this agreement as a beginning and envisioned many more agreements between the DP world and Dover Towers across different industries.

Chairman and CEO of Dover Tower also officially announced the partnership agreement between Israel shipyard and DP world to jointly participate in the tender for the privatization of Haifa port.

Jebel Ali, the only port in the Arabian gulf connected to the Far East, has the ability to accommodate mega vessels and recently decided to dock HMM GDANSK, one of the world’s largest cargo vessels, on her return  Europe Far East voyage. HMM GDANSK is 400 meters long with a capacity of 24,000 TEUs, Twenty feet Equivalent container Units.

Jebel Ali is one of the few ports in the gulf which can handle 10 mega vessels at one time. It has a handling capacity of 22.4 million TEUs and is considered as the region’s premier gateway port on the Asia- Europe sea trade route. As per Mohammed Al Muallem, CEO and MD of DP world UAE  region, the visit of HMM GDANSK bears the real testimony of Jebel Ali’s real strength and capacity.

Jebel Ali is one of the most technically developed ports employing robotics, IoT, Big Data, Virtual reality and cybersecurity, and complete automation.

Collaborative efforts between DP world and Dover Port, the two world-class companies, will help expand businesses between UAE and Israel and other middle east countries.

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What does the Major ESR Overhaul mean for the Organizations based out of the UAE?
  • Newsletter, U.A.E

What does the Major ESR Overhaul mean for the Organizations based out of the UAE?

2020 continues to be unpredictable with the UAE incorporating certain changes to the existing ESR (Economic Substance Regulations) policies, in a way to overhaul the existing principles associated with Economic Substance Regulations. As per the existing ESR guidelines, companies based out of the United Arab Emirates had to file reports, showcasing the legislative whereabouts, and tax-related activities.

Premise

Before we move any further, it is necessary to retrace the original guidelines issued on the 30th of April, 2019, as a part of the Resolution 31, postulated by the Cabinet of ministers. Besides that, specific regulations by the MOF (Ministry of Finance) were also put forth on 11th September 2019, via the Ministerial Decision no. 215. To put things in the hindsight, the existing ESR guidelines aimed at removing companies from the EU European Union) backlist and easing out the approaches for handling the Coronavirus pandemic followed by a more accommodative ESR filing deadline.

The Change

The new regulations started coming in on the 10th of August, 2020 as a part of the Resolution 57, to replace and repeal the existing Resolution 31. Similarly, Ministerial Decision 100 also comes to effect which inadvertently supersedes Decision 215 with immediate effect. While the new decisions and regulations were postulated on 10th August and 19th August respectively, official announcements were made on September 2.

Major Changes

As per Resolution 57, the authorities have issued a list of exempted licensees, as per the following categories, including

  • Investment funds and relevant setups
  • Tax residents associated with jurisdiction other than that of UAE
  • Foreign entity branches with taxable income falling outside the purview of UAE jurisdiction
  • Entity handled completely by the UAE residents and not associated with the MNE(Multinational Group of Entities), in any given manner

However, to make the most of the exemption, the relevant companies must produce verifiable evidence and file the requisite notification.

Moreover, the Cabinet affirmed the establishment of FTA or the Federal Tax Authority for,

  • Assessing the relevance of the licenses as per the ES tests
  • Functioning as the National Assessing Authority
  • Impose penalties, if and when relevant
  • Hearing, ascertaining, and deciding on relevant appeals made by the licensees
  • Exchanging information with competent authorities

The changes aimed at restructuring the chain of command and handing over the power to a centralized authority rather than that synonymous with the relevant licensee governing authorities include that of the Ministry of Economy, Free Zone Authorities, and more.

Besides that, changes in regulations and decisions also had an impact on the penalties and associated impositions, with

  • Failure to submit notification is now penalized by the US $5,450, readily bumped up from $2,725 (AED 20,000)
  • Failing the ES test is now charged at US $13,625 or AED 50,000


Apart from the following, failing the test in the subsequent fiscal year is also charged at a massive AED 400,000 followed by increased chances of license suspension, non-renewal, or revocation

  • Providing inaccurate information is also subject to penalties, amounting to AED 50,000

Lastly, the new regulation also includes a provision for Random Inspections by the NSA (National Assessing Authority) officials.

However, more transparency in the discourse, deadlines, and relevant procedures are expected in the days to come.

What do the Changes Mean?

The features changes to the ESR guidelines instruct licensees to cross-check the documentation to stay relevant to the Economic Substance. Every aspect of ESR obligation, related to the Relevant Activities must be reiterated and analyzed to check for compliance failures, erroneous or delayed submission of notifications, delayed filing possibilities, and other forms of risk mitigations for avoiding penalties.

There will also be an online portal, launched by the MOF for filing reports and notifications, electronically, as per the new Decision 100.

ESR Return or Submission by 31st December 2020 is also stressed upon for licensees to verify compliance, once and for all. The ESR Return must declare the following:

  1. UAE-centric management with a relevant directorate
  2. Insights into the adequacy related to physical assets, expenditure, and workforce
  3. CIGA or Core Income Generating Activity channels across the UAE for Relevant Activities

How IMC can help?

Considering the brevity of the situation and the more stringent set of guidelines to adhere to, we, at IMC, might just help you stay within the scope of ESR while ensuring cent percent compliance and adherence to the existing regulations. In case of non-compliance is obvious, our professionals help speed the remediation process, within days.

As a leading global accounting firm, we help you assess the numerous impacts of the recent changes on the business and financial activities while paving the way for a more sustainable future. We conduct preliminary compliance assessments and offer time-intensive and efficient solutions for instilling a culture of holistic statutory and administrative transparency.

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Dubai Multi Commodities Centre attracting new Investors with 50% reduction in Business Set-up Fees
  • Newsletter, U.A.E

Dubai Multi Commodities Centre attracting new Investors with 50% reduction in Business Set-up Fees

According to Dubai’s Government Authority on commodities trading and enterprise, the DMCC has reduced business set-up fees by 50% to entice international diamond firms for DMCC company formation in Dubai.  The 50% discount went into effect this past August and will expire at the end of September of this year.  Furthermore, new company registrants will be given a 1-year membership in the DDE (Dubai Diamond Exchange) community of more than 1,000 of the top diamond firms in Dubai.

The Minister of State for Foreign Trade and UAE Ministry of Economy, His Excellency Dr. Thani Bin Ahmed Al Zeyoudi, stated that precious metals and stones trading is a key component of the country’s economic investment diversification agenda.  The UAE Ministry of Economy is currently focusing their efforts on generating a new stage of economic development and growth by making the diamond trade a priority.  He went on to say that the DMCC should be applauded for their ambitious vision and their efforts, as Dubai has turned a period of turbulence into an opportunity.

Though globally, diamond industry is passing through a volatile time, yet after nearly 2 decades of expeditious growth, Dubai has quickly evolved into the leading hub for the world’s diamond trade.  In the 15-year period from 2003 to 2018, the total value of polished and rough diamonds rose from $3.6 billion or Dhs 13.2 billion to $25 billion or Dhs 91.8 billion.  The DMCC also revealed their plans for assisting Dubai in becoming the leading international trading hub for colored stones and Laboratory Grown Diamonds (LGD) as well.

While many perceive the current turbulence in the diamond industry as a threat, Dubai sees this as a grand opportunity to promote new business setup in Dubai.  For the UAE, the key element of their approach to business is adaptability.  The Dubai government is hopeful that the reduced set-up fees will help to eliminate the business entry and supply barriers by supplying the support businesses need during these challenging times.  It is widely felt that the future of diamonds is in Dubai.

Chairman of Dubai Gold and Jewellery Group, Tawhid Abdullah had said that Dubai has managed to traverse the difficulties, for UAE to become synonymous with the bustling diamond trade. Even though global trade in diamonds is low-key as of now, Dubai has taken a head start and with DMCC playing a major role in securing stability in precious gems and metal trade.

When the DMCC was established in 2002, it dedicated its efforts to developing an ecosystem of facilities, services, and a state-of-the-art infrastructure that would attract, encourage, and promote diamond trading in Dubai.  Thanks to the growth of the DDE, considered by many to be the largest diamond tendering facility in the world, Dubai is now the heart of the diamond trade in this geographic region.  Additionally, the DMCC has welcomed Lumex, a company that produces laboratory-grown diamonds, into the Free Zone’s LGD community.

CEO and Co-Founder of Lumex Vishal Mehta recently shared his appreciation for being invited to join the DMCC and praised their efforts at promoting the diamond trade in Dubai.  Mehta went on to say that the support being provided by the DMCC has enabled their company formation in Dubai and throughout the Middle East. There are now over 1,000 diamond company members in the DDE.  The DMCC is also promoting memberships for laboratory-grown diamond companies.  In fact, the DMCC held the very first LGD trade fair at the DDE and had over 50,000 carats on display.

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Is now the right Time to Launch a Business in MENA? The Experts say “YES!”
  • Newsletter, U.A.E

Is now the right Time to Launch a Business in MENA? The Experts say “YES!”

The pandemic has left the world economies in shambles and the unemployment rate is touching a new high in many countries. Establishing a new company or launching a new business might be counter-productive, according to most people. However, other feel that it is a good time for business setup in Dubai due to the concessions and tax leeway granted by the government agencies.

Setting up businesses take time and if you set up a business and incubate it for a few months, the economy is bound to recover. This will allow businesses get the necessary time to grow as the economy thrives in the post pandemic scenario. While there is “never a convenient time to become an entrepreneur”, experts believe that if you are able to make niche for your small entrepreneurship and get the right leverage, your success will grow as the economy recovers.  

If you are thinking about doing it, here are 7 reasons for doing the unthinkable and launching a new business in MENA.

Business opportunities tend to bloom during a recession – when a product or service can find a fit in the global market, new businesses tend to gain momentum over the ensuing months.  By arming yourself with the right knowledge, you can fill the needs of many as well as the gaps left by other businesses, by taking the next step for company formation in Bahrain.

Find a U.S.P. (unique selling proposition) – when the status quo is being challenged as it is today, you have to address it head on.  The key to company formation in Qatar in these uncertain times is to identify a need and create a solution that will satisfy it.  Remember, if you’re not solving something in this business climate, you won’t be successful.

Launching during a crisis may be more cost-effective – numerous free zones and entrepreneurial hubs are offering new business start-up incentives that you might be able to take advantage of.  Most UAE free zone authorities are offering application fee waivers as well as discounted business licenses and lease of rental agreements.

MENA is becoming increasingly more digital – businesses are collaborating via Hangouts, Teams, and Zoom.  So, the in-office meeting is quickly becoming extinct.  This could provide an opportunity for ambitious and savvy entrepreneurs.  Keep in mind the fact that there are now more consumers buying items online than ever before.

Striking out on your own during a crisis grabs the attention of investors – the true entrepreneur will see a crisis as an opportunity to establish a niche for themselves.  This tells potential investors that you are resilient and not afraid of risk.  If your business can thrive during difficult times, you’ll experience explosive growth when times are better.

Unavailable top talent may now be available – during times of crisis, companies are often forced to let go of their best talent which means these individuals are looking for a new place to use their talents.  The bottom line is that there are lots of specialists who need to find work and you could fill that need with a little effort.

When the going gets tough, shift into creativity mode – due to the pandemic and its impact on businesses globally, this has created a robust state of creativity.  This has caused a shift from survival mode to the start of an entrepreneurial revolution of sorts.

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Dubai Remains the Leading Global Destination for Foreign Direct Investments (FDI’s)
  • Newsletter, U.A.E

Dubai Remains the Leading Global Destination for Foreign Direct Investments (FDI’s)

For companies who are contemplating a new business set-up in Dubai, the following should be helpful in the decision-making process.  Despite the business and economic repercussions of the first half of 2020, Dubai has managed to hold its position as a leader in FDI’s or Foreign Direct Investments in the MENA (Middle East and North Africa) region.  Based on recent statistics published in Financial Times’ FDI Markets, Dubai was ranked #3 in greenfield FDI’s and 4th in capital flow on a global scale.

Economic Growth and Recovery

Dubai Crown Prince Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum recently stated that FDI’s are continuing to flow into the area with current FDI projects valued at AED12 billion ($3.27 billion).  This was a positive move that showed other countries are doing business in the UAE and that reinforced the premise that economic laws are conducive in UAE. These projects included the e-commerce, pharmaceutical, and technology sectors.  These figures and statistics are a reflection of how attractive the investment environment is in Dubai and how well the economy has been recovering from the Coronavirus pandemic.

Achievements on a Global Scale

Sheikh Hamdan expressed his sincere gratitude as the emirate has been ranked as one of the world’s top destinations for FDI’s.  This is attributed to the attractiveness and diversity of investment opportunities in emerging and strategic economic sectors.  Dubai was ranked as the #1 FDI destination in the Middle East and North Africa (MENA) region and 11th out of 20 worldwide FDI destinations (see FDI Markets’ Global Venture Capital FDI Ranking 2020 report).

Pertinent statistics indicate that sustained FDI investments in Dubai company incorporation exceeded AED 739 million ($201 million) during the first half of 2020.  Rankings published in the “FDI Aerospace Cities of the Future 2020/2021” report showed Dubai as #7 out of the 10 top global destinations while achieving a #2 ranking in global FDI performance in that particular sector.  Additionally, Dubai FDI Monitor data showed an increase of 53% in medium to high technology investments during the first half of 2020.

CEO of Dubai FDI, Fahad Al Gergawi emphasized that as the current world leader in global investment destinations, Dubai has already adopted measures to navigate the challenges of the pandemic. He was of the opinion that most of the FDI projects in the H1 2020 were marked by innovations in technology, cash flow and better operational capabilities. The rising trend of improvement in the economic functioning, confirms the advancement of investments in Dubai.

New Growth Opportunities

Director General of Dubai Economy, His Excellency Sami Al Qamzi, stated that Dubai’s successful development of new investment opportunities were attributed to Foreign Direct Investment trends in the first half of 2020.  These new opportunities for sustained expansion and growth in Dubai have presented themselves under Sheikh Hamdan’s leadership and directives.  This has made the global and local investment communities stronger despite having to overcome the challenges of the Coronavirus pandemic and has benefited DIFC company formation.

In addition to this, Al Qamzi stated that the first half of 2020 saw positive developments in Dubai’s and the UAE’s investment environments that were that were supported by UAE FDI laws and regulations as well as business continuity stimulus packages.  Al Qamzi went on to praise the private sector’s role as a strategic partner in overcoming the many challenges of the COVID-19 pandemic.  This increased the competition and resilience of the Dubai economy while at the same time ensuring that supply chains wouldn’t be interrupted.

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New Law protects Family-owned Businesses in the UAE
  • Newsletter, U.A.E

New Law protects Family-owned Businesses in the UAE

His Highness Sheikh Mohammed Bin Rashid Al Maktoum recently issued Law No. (9) which regulates Dubai-based family-owned businesses.  This will benefit many existing businesses and also benefit those who want to launch a new business setup in Dubai. Law No. (9) seeks to:

  • enhance family-owned business contributions for economic and social development
  • foster family-owned business expansion and growth
  • protect the wealth of families that own businesses in the UAE


Furthermore, this law applies to current and new family-owned businesses including proprietorships and corporate equity securities.  Public joint stock companies that are family-owned as well as movable and immovable properties are not regulated by this new law.  While this is a progressive approach to the protection of a family’s wealth, it also provides an option for families doing business in UAE to customize the terms within their Family Property Contract. As per the new law, the validity of the ownership contract is extendable for 15 years and can be renewed periodically after that.

This new law was implemented after many family-owned Dubai businesses petitioned the UAE government to adopt economic measures to prevent the impact of the pandemic on their businesses.

Stipulations of the Family Ownership Contract

All parties of the Family Ownership Contract must be immediate family members and have a common goal and single interest in order for it to be legally binding.  Additionally, each member’s share must be clearly defined in the contract.  Plus, the parties must have all legal rights to the assets and revenues that are found within the scope of the contract.  A notary public must attest to the rules and regulations concerning Dubai notaries public as stipulated under Law No. (4) of 2013.

Validity and Renewal Issues

According to Law No. (9) 2020, the validity of the contract can be extended up to 15 years.  Renewal for a similar term is possible provided all parties involved in the Family Ownership Contract agree to do so.  In addition to regulating the articles of the contract, Law No. (9) also regulates the following:

  • authorities and responsibilities of the board and management
  • business’s management and structure
  • formation of the board of directors or owners
  • management’s limitations and powers


The authorities and responsibilities of government entities regarding the formation of a family-owned business is also defined under this new law.  Any other legislation that challenges or contradicts the articles of the contract will be annulled.

Finally, should any dispute arise between the members of the Family Property Contract, it shall be settled by a judicial committee made up of family management, financial, and legal experts.  This will ensure the confidentiality and privacy of these matters and will help to resolve the dispute in an efficient and timely manner.  Last but not least, the law will be valid as of its publishing date in the Official Gazette.

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