The year 2021 started with some welcoming changes in the dynamics of business setup in the UAE as the country restored its relations with Qatar. The UAE and Saudi Arabia and Bahrain have reopened all the borders to Qatar, ending a three-year-old embargo. The restoration of trade ties with Qatar will boost regional stability and paving the way for more opportunities of setting up a business in Dubai, UAE. The positive development happened with the signing of an agreement (Al Ula Accord) with Qatar at the 41st GCC summit held on 5th January 2021 at Al Ula, Saudi Arabia.
Investors who are keenly observing the business dynamics in the Gulf region will be interested to know how the resumption of trade ties will further enhance the investment flow into the UAE. For such curious minds, business setup consultants in Dubai present a detailed insight into the fresh developments in the Gulf. Read on to understand how the new developments will benefit the investment opportunities in the UAE and Qatar:
a) Tourism Sector to Gain
Dubai, the second-largest emirate in the UAE, is known across the world as a dynamic tourism destination. However, there was a significant dip in the number of inbound tourists in the aftermath of the COVID-19 pandemic. However, timely intervention from the government has had positive impacts on the profitability of the tourism business setup in Dubai. The sector has made significant strides, especially after the signing of a peace accord with Israel and now the resumption of ties with Qatar. Rating Agency Moody’s predicts that the Qatari economy will also benefit from the inflow of tourists from the UAE, Saudi and Bahrain.
b) Construction Industry is Upbeat
The new agreement with Qatar is poised to have a significant impact on the UAE’s construction industry. The construction industry in the UAE has been hit by lower oil prices and the Coronavirus outbreak, resulting in reduced real-estate prices. With the signing of the new agreement, investors from Qatar will come to by under-priced real estate properties in Dubai and other emirates. The Qatari investments will be a much-needed stimulus for the UAE construction sector, which has put many projects under hold. Investors planning to set up a real estate business can consult with the best business setup consultants in Dubai for a quick process.
c) Opportunities from 2022 FIFA World Cup
A year from now, the world’s eyes will be focused on Qatar as the Gulf nation is hosting FIFA World Cup 2022. The 2022 World Cup is beneficial for both UAE construction companies and the Qatari tourism sector. As the World Cup kicks off, football fans from a number of continents will travel to Qatar. It will boost the country’s aviation, hospitality and retail sectors. Apart from that, the UAE construction companies are likely to get more business opportunities to help meet the demand arising out of World Cup projects. For tourism and real estate investors, this is the right time to commence the process of business setup in the UAE.
d) Investors Focusing on Intra-GCC Rout to Benefit
The companies that are dependent on intra-GCC trade routes look at the new agreement with Qatar in a positive light. As the trade route opened, such companies will benefit from the considerable ease of disruption and a return to a cost-efficient way of doing business with Qatar. Many logistics companies, cargo airlines, shipping companies, and retail & consumer goods companies have trans-border operations in Qatar. Such companies have already welcomed the reopening of flight routes to Qatar. The new enthusiasm seen in the trade will also be an inspiration for investors looking to set up a business in the UAE, eyeing potential clients in Qatar.
e) Big Boost to the Gulf’s Job market
With the UAE, Saudi and Bahrain agreeing to end the dispute with Qatar, recruiting firms expect that the hiring activity will pick up in 2021. Finding the right talent in Qatar was one of the biggest hurdles that the recruiting companies faced since the blockade. A job in Doha was no longer considered an attractive option as the major Gulf countries severed ties with Qatar. But as things have now changed for the better, recruiting companies in the Gulf region are more enthusiastic now than ever.
How Business Setup Consultants in Dubai View the Developments?
The signing of the Al Ula Accord is a big stimulus for company formation in the UAE & Qatar as trade disruption is lifted. Companies operating in a wide range of sectors such as construction, tourism, HR, logistics and aviation are likely to benefit from the resumption of trade with Qatar. The new scenario opens a profitable opportunity for investors who can consult with business setup consultants in Dubai, such as Jitendra Business Consultants (JBC) for setting up companies in the region.
JBC provides the investors with the best business setup services in Dubai, UAE, which will enable them to benefit from the renewed relationship with Qatar. JBC advises the investors about company setup in mainland, offshore and free zones in the UAE. By availing of JBC’s services, the investors need not worry about the complexities of legal structures, licensing procedures and documents required for company formation in Dubai, UAE. In short, JBC gives power to the investors in making the best out of the business opportunities emerging out of the trade resumption with Qatar.