German investors have long been significant beneficiaries of the UAE’s immense appeal as a thriving business hub given the enduring trade relationship between the two countries. The German business community have tasted success by initiating business setup in the UAE in a wide variety of industries, predominantly the energy sector. Setting up companies in the UAE provides the German entrepreneurs with unlimited access to the Middle East markets, thereby enhancing the prospect of their business expansion. The two countries have reasserted their resolve to elevate the bilateral trade relations during the recent developments at the diplomatic level.
German entrepreneurs traditionally prefer company formation in Dubai and Abu Dhabi given the global appeal of the two cities. However, this doesn’t mean the other emirates remain untapped. New entrepreneurs who wish to set up a business in the UAE should consider the following vital insights that explain the popularity of the country among German investors.
Germany: UAE’s Largest Trading Partner in Europe
Germany is the UAE’s biggest trading partner in Europe. The non-oil trade between the two countries jumped 60% between 2010 and 2017 and touched $13.45 billion (AED49.4bn). In 2019, exports from Germany to the UAE reached $9.7 billion (AED 35.6 billion). Motor vehicles, machinery and electrical goods rank top among the German exports to the UAE. The UAE also imports food products from Germany with chocolate and candies as top imports.
Strong Presence of the German Community in the UAE
Germans are one of the most constituents of the expatriate population in the UAE. The German community’s role in cementing the relationship between the two countries has been well-documented. Official statistics say that around 15,000 Germans used to live in the UAE before the COVID-19 outbreak. And most of them continue to stay in the UAE as they are confident about the preventive measures taken by the government.
Germans are Constant Fixture in UAE Events
German business community has been actively partaking in almost all the high-profile events organised in the UAE. The German delegates marked their presence in Abu Dhabi Sustainability Week, World Urban Forum, Arab Health, Gulf Food etc. After the pandemic, it has been hard for the delegations to ensure their physical; presence at the UAE events, but they maintained the bilateral relations virtually. Apart from this, German Foreign Minister Heiko Maas paid a visit to Abu Dhabi in August 2020, which proves that the pandemic has not dampened the political and business relations between the two nations.
UAE Eases Many Social Restrictions
The UAE’s throbbing food, entertainment and nightlife scene has always been an attraction for Western businesspeople. Dubai is the focal point of such high-profile leisure activities. However, stringent regulations based on Islamic Laws have been a turn off for European tourists and investors. The UAE Government recently implemented many secular-leaning reforms that are sure to attract more Germans. A significant change in this regard comes in the form of decriminalisation of alcohol consumption.
Greater Strides in Investments
The process of business setup in the UAE provides the German entrepreneurs with a favourable regime for industrial activities. German companies have made substantial investments in the upstream energy sector in Abu Dhabi. Germany’s investment interest in the UAE is not limited to just the energy or heavy industries. There are three German schools in the UAE and the Goethe-Institut in Abu Dhabi is a tremendous cultural link that unites the two countries.
Start a Company with the Help of Business Setup Advisors in UAE
The German investors are not new to the game when it comes to the process of business setup in the UAE. Since the two countries enjoy more significant bilateral relations, the new investors won’t feel alienated in the region. The presence of German companies and communities make the situation more favourable to investors. The recent relaxation in personal laws also appeals to European sensibilities. However, investors need to be aware of the UAE labour laws and immigration laws before incorporating their companies.
The licensing procedure can be quickly completed with the help of experienced business setup consultants in Dubai who comes with impeccable legal expertise. Investors looking to hire business setup consultants in Dubai, UAE should look no further than Jitendra Business Consultants (JBC). JBC’s highly qualified company formation specialists will ensure a hassle-free business setup process. JBC undertakes services including documentation, PRO services, bank account opening, trademarks, VAT registration. Getting all the services under one roof enables the investors to achieve their business goals quickly.