The Middle East has some of the highest GDP per capita countries. While these countries were traditionally known for oil exports, there are many import-export opportunities in these flourishing economies. However, it is not easy to choose a place to set up an import-export business in the Middle East. We think the United Arab Emirates (UAE) is the best place to start an import-export business. In this article, we will explain why.
1. Strategic location Efficient supply chain management plays a huge role in the success of any import-export business. If you are planning to start an import-export business in the Middle East, the UAE’s strategic location is going to be extremely helpful for you. With proximity to major markets in Asia, Europe and Africa, the UAE opens up a lot of opportunities for any import-export businesses. The easy connectivity to these markets also means reduced operational costs for your business. 2. Booming market The UAE has a very strong and stable economy. Over the years, the nation has done a great job of reducing the reliance on oil through diverse investments in various industries. There has been a great push for technology, tourism, healthcare and infrastructure, resulting in a thriving marketplace. As an import-export business owner, this gives you a lot of opportunities. The diversity has led to an increased demand for various goods and services that your import-export businesses can fulfil. Additionally, the new industrial set-ups in the UAE have led to various export opportunities, which was not the case earlier. 3. World-class infrastructure The infrastructure in the UAE is second to none. For starters, the UAE has 12 commercial trading ports other than oil ports. These ports contain 310 berths with cargo tonnage of 80 million tonnes. Then there is great railroad as well as road connectivity within the UAE to further support your import-export initiatives. If you are planning to move cargo through airways, the UAE has got you covered there as well. With reliable infrastructure and quick connectivity within the region, you will get a huge advantage if you choose the UAE to set up your import-export business in the Middle East 4. Free Trade Agreements The UAE has signed Free Trade Agreements (FTAs) with various nations and bodies. It is one of the signatories to the Information Technology Agreement of the World Trade Organization which is geared towards eliminating tariffs on IT products. Similarly, the UAE is part of various other FTAs aimed at improving competitiveness in foreign markets, reducing trade barriers, boosting trade, protecting intellectual property rights and more. Some nations with whom the UAE has signed FTAs include New Zealand, Singapore and EFTA countries. It is currently in talks with more nations including the European Union, Korea, Australia, China, India and more. All these FTAs can potentially be a huge advantage for your import-export business leading to reduced costs and smooth operations. 5. Tax-friendly The UAE is home to some of the lowest tax rates in the world, potentially zero in some cases. With business-friendly tax policies, your import-export business in the UAE will enjoy a huge advantage over its competitors. The low tax rates also lead to the reduced cost of overall business operations leading to even more growth opportunities for your import-export business. 6. Free zones Free zones are dedicated economic areas which operate under their own set of regulations to support specific business activities. If you are setting up your import-export business in the UAE then doing so in a free zone is immensely beneficial. Some of the added benefits of starting your import-export business in a free zone include 100% foreign ownership, additional tax relaxations, a simplified business registration process and more. In fact, in some cases, you can qualify for zero customs duties for your import-export business. However, you will have to look for free zones that specifically allow the kind of trading activities you want to pursue. In a free zone like Ras Al Khaimah Economic Zone (RAKEZ), you can easily set up your import-export business. Here, experienced professionals can help identify the exact requirements in terms of licences, permits and facilities. Based on that, you can get a customised package to kickstart the business. 7. Expertise and support The UAE government has played a huge role in facilitating the growth of various business activities in the country. The simplified set-up procedure, ease of doing business, favourable infrastructure for businesses and other functions are indicators of support from the government. Additionally, various authorities even lend their expertise to help you set up and run the business successfully.
The UAE is clearly the best option for setting up an import-export business in the Middle East. However, there are plenty of options to choose from even when you decide to set up a business in the UAE. You might want to consider RAKEZ if your import-export business plan falls on the list of qualifying activities for the zone. With custom packages and various facilities including warehouses and offices, it can easily satisfy all your import-export business needs. Interested? Contact RAKEZ and learn more.
Q: Why is the UAE considered a strategic location for an import-export business? Ans: The UAE's strategic location provides proximity to major markets in Asia, Europe and Africa, which facilitates efficient supply chain management. This reduces operational costs and opens up numerous business opportunities. Q: What makes the UAE's market attractive for import-export businesses? Ans: The UAE boasts a strong and stable economy with diverse investments in various sectors such as technology, tourism, healthcare and infrastructure. This diversity creates high demand for different goods and services, offering ample opportunities for import-export businesses. Q: How does the UAE's infrastructure support import-export activities? Ans: The UAE has world-class infrastructure, including 12 commercial trading ports with 310 berths and a cargo tonnage capacity of 80 million tonnes. Additionally, excellent railroad, road and airway connectivity ensures efficient movement of goods within and outside the UAE. Q: What benefits do Free Trade Agreements (FTAs) in the UAE offer to import-export businesses? Ans: The UAE has signed FTAs with various countries, reducing trade barriers and tariffs. These agreements enhance competitiveness in foreign markets, protect intellectual property rights and facilitate smoother and more cost-effective trade operations. Q: What are Free Zones in the UAE and how do they benefit import-export businesses? Ans: Free Zones in the UAE are dedicated economic areas with their own regulations to support specific business activities. Benefits include 100% foreign ownership, additional tax relaxations, simplified business registration processes and zero customs duties for eligible businesses.
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