08 Nov Ease of Doing Business: UAE Rises 10 Positions
UAE has always been among the top destinations for doing business. The country attracts local as well as foreign investors to invest in its numerous business sectors. One of the major reasons for this draw is the ease of setting up a business in UAE. Moreover, stable government, better political and social environment, booming economy, liberal laws and regulations for the business set up and many other factors contribute to attracting more and more investors. As a result, company formation in Dubai is on a rise.
With a package of reforms that were introduced in the past year, UAE has climbed up 10 positions to reach 11th position in the World Bank’s ease of doing business rankings. As per the report of the World Bank, the constant and focused efforts by the UAE government to keep the economy competitive and vigilant has led to the rise in the position.
Even though UAE has always led the Arab World for the past six years, the recent rankings have positioned its economy among world’s top 20 countries for the ease of doing business.
The World Bank’s ranking is determined after considering the scores of 190 countries on 10 factors that include dealing with construction permits, paying taxes, protecting minority interests, obtaining electricity, protecting minority interests, etc.
Factors contributing to UAEs better ranking
The four significant economic reforms that led to a better environment for doing business in UAE are:
- Ease of starting the business
- Getting electricity
- Smooth and easy registration of real estate
- Gaining access to easy credit
In terms of getting electricity, UAE has made it easier by getting electricity connections for commercial and industrial usage by eliminating the industrial and commercial cost of up to 150 kilo-volt-amperes (kVA). It is one of the few countries that received the top score in terms of electricity subcategory.
UAE has further made it easier for the entrepreneurs to start a business in the country by improving its online procedure for company registration. Moreover, government has made it simpler for new businesses to avail funds by strengthening the credit system by creating a register of moveable assets. This makes it safer for the banks to lend money to new businesses. UAE has further simplified the procedure to register a property by increasing the transparency of the land administration system.
The judiciary system of Dubai has also improved considerably. The measures like the modernization of the judiciary, better training of arbitrators and judges, setting up of commercial courts, implementation of new insolvency code, etc. have shown tremendous results for the economy of UAE. Furthermore, as per the new framework the secured creditors have priority to get their dues and have out of court settlements. This has strengthened the legal rights of the lenders and borrowers in the country.
All of these efforts have shown a positive impact on the judicial system of the country specifically on commercial litigations and insolvency proceedings. The Federal government and other local departments of UAE have made the country an ideal location for the investors to do business. The world class friendly environment of the country makes it an innovation hub. Furthermore, the commitment of the government to resolve the challenges remaining in its services and litigation matter ensures that UAE shall continue to remain committed towards rapid growth of its economy.
UAE is all Set with the New Plan to Spur FDI and GDP Growth
Investment Opportunities in UAE
With its attractive investment environment, UAE continues to be an investment friendly destination specially for international companies that are eyeing to set up their business in the Gulf region. The above factors along with world-class infrastructure in the form of top quality airports, public facilities, and economic zones leads to the evolution of UAE as an international business destination. Moreover, the relaxed and robust policies of the government further facilitate the business environment in UAE.
If you are keen on setting up a company in UAE, you can seek professional help to expedite and ease the entire process of company registration and operation. A professional and dedicated company like IMC Group can help you conduct initial market research, conduct feasibility studies, design entry strategies, make business development plan, register a company, obtain required business licenses and permissions and set up a company in a hassle-free manner. We have helped thousands of local and international companies to set up or expand businesses in Dubai and UAE. Feel free to reach out to us on firstname.lastname@example.org.