United Arab Emirates (UAE) – The Dreamland of businessmen
Syam P. Prabhu, B.A (Law), LL.B, LL.M, Founder & Managing Director, AURION Business Consultants, Dubai & Sharjah, UAE
Indians constitute the largest group of investors in the UAE. The boom in real estate and ease of doing business are the key factors contributing to the attraction of investors. UAE has sealed its reputation as one of the lowest corporate tax jurisdictions in the world. The Corporate Tax rate of 9% on Profits and Zero Personal Income Tax lures the investors and businessmen into this country.
The high-end luxury, security of life and businesses, connectivity to all parts of the world and the minimum taxes encourages businesspeople to flock to UAE. The various incentives offered by the government for businessmen is an added attraction to shift part of the business into this region.
Business houses resort to various strategies for optimizing the tax savings. Operation of businesses from a low tax jurisdiction is one among them. The corporate tax rate in the UK is (25%), Singapore (17%), Hongkong (16.5%), India (30%), and Saudi Arabia (20%). The percentage goes up when Surcharge and CESS are also added. UAE is a haven to optimize the business savings and grow the business establishments seamlessly.
UAE has strong ties with several countries as part of the bilateral trade relations. The India-UAE Comprehensive Economic Partnership Agreement has further strengthened the long-lasting relations of trade and commerce between the two countries. Both countries are now extensively exchanging human resources, jointly exploring natural resources, implementing modern technology and healthcare projects, etc., as part of the long-standing economic partnerships.
With high end luxury at affordable rates and secure business environment, UAE is attracting more investors and businessmen than ever before. UAE is one the major export market for Indian traders.
From UAE, the traders re-export to various countries in the GCC, Europe, and Africa. Indian exports such as garments, handicrafts, spices, jewelry, and perfumes continue to dominate the UAE markets, highlighting the rising demand for Indian products in the Gulf region.
The trade volume between India and UAE is significantly higher and contributes positively to the GDP growth of both countries. “It is wise for Indian businessmen and exporters to think of using UAE as a hub to re-export their product and services worldwide” says Syam P. Prabhu, Founder and Managing Director of AURION Business Consultants, UAE.
Investors can setup branch offices, distribution centers for channeling their international trade operations. The top-class logistics infrastructure, global connectivity and efficient customs systems make Indian Businesses to easily access markets of Africa, Middle East, and the Europe.
The proximity between India and UAE allows faster shipping, reduced logistics cost, and better control over the supply networks. Thus, enabling more Indian exporters to build their distribution network in the UAE with the help of the already growing Indian diaspora in the region.
India-UAE partnership is beyond just trade and commerce, it is a strategic alliance built on mutual growth and long-term vision. UAE is evolving into a global business hub with business-friendly infrastructure. It is a mutual gain for both nations and together they can expand international trade and drive economic growth to their regions and beyond.
• Syam P. Prabhu, B.A (Law), LL.B, LL.M, Founder & Managing Director, AURION Business Consultants, Dubai & Sharjah, UAE
Email: Contact@aurionuae.com, www.aurionuae.com
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