Abu Dhabi: The Manhattan of the Middle East
If you are searching for a bustling city that’s full of vibrancy and never-ending energy, then Abu Dhabi may just be your new favorite destination. Dubbed the “Manhattan of the Middle East,” this city is populated with diverse, quickly growing markets, making it a perfect location for entrepreneurs to start a new business. Abu Dhabi has long had a business-centric economy, holding over ten percent of the world’s oil reserves and heavily funded by tourism, industrial development, real estate, and retail industries.
Abu Dhabi is also the capital of the United Arab Emirates (UAE) and a global hub for all things business-related. The UAE is known for its progressive business approach, limiting tax responsibilities for corporations and waiving a large portion of business setup costs for new investors. These incentives have made the region a perfect location to network and conduct business with other investors.
A Radical Change: Fees for Business Setup in Abu Dhabi Slashed by More than 90%
In an unprecedented move, Abu Dhabi dramatically slashed its business setup and startup fees. It now costs as little as 272 USD for a business setup in Abu Dhabi’s mainland. This is a price decrease of over ninety percent! In fact, the Abu Dhabi Department of Economic Development (ADDED) cut business startup fees by a total of ninety-four percent.
In recent years, the government of Abu Dhabi has made bold moves to draw foreign investors into the economy. In doing so, they’ve rolled numerous fees into this low-priced business setup package, covering all costs from other departments, including the Department of Municipalities and Transport, Certificate of Conformity issuance fees, and many more.
One may think that slashing business formation fees by over 94% may have a negative economic effect, but this is not the case. In fact, eliminating most business setup costs has caused extensive growth in new investments and businesses entering the area. It has significantly reduced a cost barrier that prevents many new investors from forming companies.
Another benefit of this endeavor is the construction of a more diversified economy. Healthy economies typically feature a wide array of different industries. For example, restaurants often see an increase in traffic flow when a new industry opens up nearby. A new clothing shop may see a business boom when other retailers open their stores in the vicinity. These industries are interconnected, and a diverse economy provides the maximum potential for all business owners.
Who Benefits from This? Everyone!
The benefits of business setup in Abu Dhabi and business setup in Dubai are wide-ranging. Let’s take a closer look at four of the most significant benefits potential investors may see:
• More Jobs
Slashing business startup fees generate more jobs across the city by providing companies that ordinarily couldn’t afford business setup fees an opportunity to advance their business. With more jobs entering the market, the economy will continue to grow.
• Support for small and medium businesses across several sectors
Abu Dhabi has provided enormous support for smaller and medium companies by slashing startup fees by over ninety percent. This allows new businesses to open their doors.
• Bolstering the emirate’s non-oil economy
Thanks to this change in the business startup process, more businesses of various types are forming. Combining this economic shift with the rise of alternative energy sources, Abu Dhabi will finally be able to move away from oil production as its leading economic driver.
• Developing new industries that will lead to future growth
The influx of new industries in Abu Dhabi can potentially lead to enormous economic growth. And with the city being the center of one of the most affluential corporate locations globally, there is no better place for a new industry than Abu Dhabi.
Here’s Why You Should Start a Business in Abu Dhabi
The benefits to business setup in Abu Dhabi do not end with low startup costs. In fact, seven distinct advantages make life better for every business owner. Let’s take a look at each of those advantages.
• 100% Foreign Ownership in Abu Dhabi mainland
Abu Dhabi sets itself apart from the rest of the United Arab Emirates by doing away with national sponsorship requirements. Prior to June 2021, all foreign companies were required to operate with a national sponsor that held fifty-one percent of the shares in their company. Abu Dhabi changed this regulation by allowing foreign owners to finally have 100% ownership of their companies.
• Ability to Trade Anywhere in the UAE
Naturally, investors want a company to profit as much as possible. One of the best methods to maximize potential is by forming your company in Abu Dhabi’s mainland. Here, you can trade and work with anyone in the entire UAE. This opens your company to an entirely new market it might not be exposed to in one of the many free zones.
• No Corporate or Personal Tax
There are no corporate or personal taxes. Businesses are free from tax responsibilities in Abu Dhabi as a part of their economy-boosting initiative. Taking advantage of this can set companies apart from the competition and allow them to streamline their finances.
• No Compulsion of Minimum Capital for Business Setup in Abu Dhabi Mainland
When an investor has a share in your company in Abu Dhabi, they will not have to worry about it. Investors owning shares in your company won’t have to face issues keeping that money in a bank in the UAE. This opens you up to a broader range of investors and business potential.
• No Annual Audits
Annual audits can be a pain, but they have been a traditional aspect of business for years. Recently, however, Abu Dhabi moved to eliminate required yearly audits. This takes away the intense stress of preparing for an audit. However, it is essential to note that while no official audit is required, keeping records of your money and accounts is still important.
• Affordable Locations to Set Up Office space
Most physical companies need office space, regardless of their industry. Another benefit of company formation in Abu Dhabi is that investors who form their business can find affordable office space anywhere in mainland Abu Dhabi.
• Excellent Infrastructure in Abu Dhabi
If you’re looking for a city that’s vibrant, multi-cultural, and full of diverse business potential, Abu Dhabi will be your destination of choice. As the wealthiest city in the entirety of the Emirates, an assortment of services and well-developed infrastructure are ready to help you maximize your new investments.
Start Your Next Step Today with MSZ Consultancy
MSZ Consultancy wants to be your choice in business setup services! With setup fees at an all-time low, there has never been a better time to get started! If you’re considering investing or company formation in Abu Dhabi, MSZ Consultancy is ready to help! With years of experience helping companies navigate the rocky terrain of foreign business ownership, we are prepared to help bring your business to life. Our business experts are knowledgeable in both business and legal procedures in the UAE! Whether it’s company formation in Abu Dhabi, applying for a residential visa, seeking PRO services, or even securing foreign sponsorship, we have the skills to help you succeed. Give us a call today at +971 52 544 1248 and let our team of specialists help you maximize your business potential!