israel UAE business setup

How Israelis Can Setup Businesses in the UAE and its Benefits

Abraham Peace Accords Agreement is definitely a remarkable Treaty of Peace between the United Arab Emirates and Israel. The peace treaty will definitely change both countries’ geopolitical and economic landscape and envisions new political, business, and economic prospects for both the UAE and Israel. Starting joint ventures and business projects between the two countries can benefit both countries in the international business arena. After announcing the peace treaty, many Israeli businesses have taken advantage of the business setup opportunities offered by the UAE government. This was expected, taking into account the exceptional business opportunities and low tax policies that the UAE government has adopted for years to attract foreign investors and entrepreneurs. The UAE is most definitely one of the most powerful business hubs not only in the middle east but is also recognized globally due to its very-well established modern infrastructure standing up to the highest standards set in the world for conducting business. 

Benefits of setting up businesses in the UAE for Israeli entrepreneurs  

There are numerous benefits offered by the UAE government for foreign investors, among which here are some major ones:

  • Exceptional and unique investor- and business-environment: there are plenty of reasons why foreign investors choose the UAE as their main destination for diversifying their portfolio, starting or expanding their business. The main reasons are the speedy business setup procedures, reasonable and cost-effective investment costs, excellent infrastructure, and fifty free zones that provide investors and entrepreneurs with various business opportunities. 
  • Zero tax policies and a clean business environment: the UAE is stringent in banking and transparency; thus, it has a clean and no-corruption business environment. Zero tax on incorporation and personal income and the total repatriation of capital and profits have also attracted many foreign investors from every corner of the world. These reasons have resulted in approximately 20,000 launches of new businesses each year in the UAE, which is only growing in number. The only applicable tax is the VAT, which is a mere 5%.
  • Having access to a vibrant business environment: with the UAE being home to many businesses at an international level, many international companies have opened their branches in the country and many popular startups that have thrived significantly throughout the years. Having access to a thriving business environment and unique business opportunities gathered all in one place is one of the huge advantages of starting a business in the UAE. Also, the strategic location of the UAE that connects the middle east to Asia, Africa, and the European Union makes the country very favorable for those businessmen who need to flight often for closing business deals. 
  • Excellent infrastructure for conducting business: handling many passengers every day in some of the major airports of the world located in the UAE (the country has seven international airports alone), 12 commercial trading ports, and expression ways that facilitate moving goods and products have provided investors with an excellent, modern environment in terms of import and export. The trade license can be obtained fast and with minimum paperwork.
  • Having the chance to apply for the UAE residence visa: for those foreign investors or entrepreneurs who would like to move to the UAE to conduct or expand their business, the main applicants and their families can apply for a residence visa. This visa is valid for up to ten years for specialized investors and five years for students or entrepreneurs. Based on the newly announced citizenship criteria, if eligible, they can even apply for citizenship after a while.

 

 
Best business and investment opportunities for Israeli investors 

There are some business fields in the UAE that stand out for Israeli investors and businessmen and can be exceptionally beneficial for them: 

  • Artificial Intelligence (AI): the UAE has been one of the major investors in AI technologies in the past decade (USD 2.15 billion in total). The National AI Strategy aims to make the United Arab Emirates the global Artificial Intelligence leader before 2031. Their plans majorly include hiring experts in AI technologies, establishing data-driven AI startups, and boosting AI innovations. 
  • FinTech: following the signing of the Abraham Accords Peace Agreement, DIFC FinTech Hive and FinTech-Aviv of Israel, basically two technology-based giants in the two countries, signed an Agreement of Collaboration. This agreement is foreseen to significantly contribute to boosting the business and enhancement of both FinTech-based industries. 
  • Industrial sector: maritime, aerospace, aluminum, and other fabricated metals, medical equipment and pharmaceuticals, machinery and other equipment, beverages, and food are all industrial sectors that are recognized as six crucial sectors that will aid the development of the nation. The UAE planning to advance its high-tech, science, and financial sectors, and to this aim, the country has started setting up business cooperation and joint businesses with Israel. For example, World’s no.1 Free Zone (Dubai Multi-Commodities Center) has opened an office for representation in Tel Aviv. This office shall support all the Israeli businesses, industries, and other sectors keen to set up and make their presence in DMCC and Dubai.

 

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