Over the years, the United Arab Emirates (UAE) has turned into a global hub. It attracts businesses, tourists and students alike. From some of the tallest skyscrapers to some of the technologically advanced institutions, you will find it all in the UAE. All of it has led to an increase in the valuation and demand of real estate across the region. This might be the best time to start a real estate company in the UAE. In this article, we will share all the reasons why you should start a real estate business in the UAE along with the steps you should follow to do so.
A growing market is indicative of a prosperous user base with huge purchasing potential for any real estate business. The UAE’s booming economy has been attracting various investors, from all walks of life to its shores. This has led to increased demand for real estate in the region, and therefore, increased opportunities for real estate businesses.
The UAE is strategically located at the crossroads of Africa, Asia and Europe. This not only makes it a major transport hub but also home to various businesses and business owners. The healthy influx of stakeholders because of the UAE’s strategic location translates well for the real estate market in the region.
The UAE’s world-class infrastructure plays a huge role in the growth of the real estate market in the region. It boosts residential real estate through its global educational institutions, sports complexes, advanced healthcare facilities and more. It also improves the valuation of commercial real estate through advanced transportation networks, commercial hubs and modernised transit points. If you are planning to set up a real estate business in the UAE then its infrastructure is going to be a huge aid.
The UAE is ranked 16th in the world when it comes to the ease of doing business. Everything here is set up to provide the most assistance possible to the businesses. If you decide to set up your real estate business in the UAE, the streamlined processes, strong legal frameworks and supportive regulatory environment will be extremely helpful.
Net profitability is the eventual criteria to measure the success of any business. You will enjoy minimal to no taxation if you decide to start your real estate company in the UAE. All that money saved on taxes will not only improve profitability but set you up for future success.
There cannot be a bigger factor impacting a real estate business than the location. Location plays an even more important role if you are planning to set up a real estate business in the UAE. The locations in the UAE can be primarily categorised into mainland and free zones. So the first step for you is to decide between the mainland and the free zone. The real estate laws and regulatory bodies for real estate can vary for emirates in the UAE, making it even more important to choose the right location for your real estate business. Some of the benefits of setting up a business in the free zone include 100% foreign ownership, tax exemptions, streamlined processes and more. While the processes of setting up a real estate company in the mainland and free zones are mostly similar, there are still a few differences between them. The subsequent steps mentioned in this article are going to be relevant to free zones, especially the Ras Al Khaimah Economic Zone (RAKEZ).
The UAE free zones allow only certain types of business activities. To start your real estate business in the UAE, you need to get a trade licence from the relevant free zone. The free zones offer a list of business activities allowed, and you can easily register your business through it. For example, here are some of the real estate-related business activities allowed in RAKEZ.
You will have to specify which of the following legal structures is your company going to follow: - Free Zone Limited Liability Corporation (FZ LLC) - Free Zone Establishment (FZE) - Free Zone Company (FZ Co.) The structure will determine what set of regulations apply to your company. You will also have to finalise and register a trade name. The UAE has laid down a set of guidelines for naming companies. You need to adhere to all those rules while coming up with a name for your company.
As mentioned above, each emirate in the UAE has its own set of property laws and regulations. Based on your specific real estate business activity, you need to understand the applicable compliances and seek approvals, wherever necessary.
Once you have clarity on everything that is needed to start your real estate business operations, you can pay the fee, provide documentation and get approvals from the necessary authorities.
RAKEZ might be the perfect choice if you are looking to set up a real estate company in the UAE. With a complete suite of customisable services, you can easily find everything needed for your specific business. Our business development professionals can help you identify business activities, necessary licences, legal entities and more. With most of the things taken care of for you, you can focus on the necessities to grow the business. Contact us to learn more.
1. Why should I start a real estate company in the UAE? Ans: The UAE offers a booming real estate market, strategic location, top-notch infrastructure, ease of doing business and nominal taxation. These factors make it an attractive destination for real estate businesses looking to capitalise on the growing demand and high profitability. 2. What are the main benefits of setting up a business in the UAE free zone? Ans: Setting up in the UAE free zone offers 100% foreign ownership, tax exemptions, streamlined processes and simplified business regulations. These benefits facilitate easier and more efficient business operations compared to the mainland. 3. How do I choose the right business location in the UAE? Ans: You need to decide between the mainland and free zones. While both have their advantages, free zones like the Ras Al Khaimah Economic Zone (RAKEZ) offer specific benefits such as full foreign ownership and tax exemptions. Your choice should align with your business needs and the regulatory requirements of the emirate. 4. What legal structures are available for setting up a real estate company in the UAE free zones? Ans: The available legal structures in UAE free zones include: Free Zone Limited Liability Corporation (FZ LLC) Free Zone Establishment (FZE) Free Zone Company (FZ Co.) Each structure has its own set of regulations and requirements.
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