The UAE serves as a key location for investors from South Africa. Whether it’s through Dubai mainland or a Dubai free zone, South Africans continue to reach out to UAE business setup advisors and Dubai business setup consultants for their company setup needs. It is estimated that 60,000 to 80,000 South Africans reside in the Emirates, and many iconic South African brands, such as Mediclinic, Nando’s, Standard Bank, Nedbank, Barloworld Logistics, Dimension Data, and SA Airways have established their presence locally.
New business setup in Dubai and UAE by South Africans continues to be an important reciprocal strategy for people of both nations. The federal government has encouraged continued confidence shown in the economy and its potential with initiatives worth AED100 million launched that strengthen UAE-Africa business ties, including the latest announcement that 200 UAE golden permanent residency visas are being reserved for high net worth business people.
Low Crime Rate in Dubai and UAE
Dubai attracts many investors from South Africa who wish to escape its high crime levels. Over 1.3 million housebreaking incidents, 264,000 home robberies, and 82,000 car thefts were reported to the national statistics service, Stats SA, in 2019, of which only a fraction was reported to the police. With low trust in crime prevention and/or legal remedies, investors seeking to protect their assets look to investor-friendly cities, such as Dubai, when opening a business in UAE, and relocate their business to ensure long-term safety. If you want a peaceful life and hope to be the next top restaurant brand like Nando's, you can apply for a restaurant license in Dubai.
Ease of Starting a Business in UAE
UAE leads the Middle East and Arab world on the World Bank’s Ease of Doing Business report, securing the 16th position on the 2020 ranking. Political instability has rendered South Africa’s business landscape risky for many investors. South Africa’s economic growth is sluggish, with consistently low tax revenue collection rates thwarting the progress of state-owned infrastructural development initiatives. Limited access to electricity has remained a recurring issue over the years.
In contrast, Dubai offers its investors from South Africa a three-year residency visa in the UAE. Moreover, company setup costs are priced affordably. South African entrepreneurs can also benefit from other conveniences, such as easier construction permits, improved minority investor protection, ease of paying taxes and efficient export and import procedures.
Dubai’s Strategic Geographic Location
Like investors from other parts of the world, South African investors are also drawn to Dubai’s crossroads position between the Eastern and Western markets. With many of the world’s major business hubs only a short flight away, opening a business in Dubai gives investors access to the Middle East and North Africa as well as European and Asian markets. A general trading license or an e-commerce license in Dubai allows businesses to import goods from other countries.
Do you have questions about opening a business in the UAE? Our experts at Decisive Zone can answer them all. Contact us now to book an appointment.
Decisive Zone is a business setup company helping you find the best-suited solution when establishing a company in UAE. Decisive Zone will advise you on the corporate structure and jurisdiction to choose from, while covering all technical, administrative and financial aspects of UAE business setup.