After successfully containing the threat posed by a global pandemic, the UAE has reaffirmed its business commitment to traditional trade partners in Europe. Among the UAE’s most important Euro partners, Italy stands out due to the close ties it shares with the Middle East superpower. The UAE has traditionally been a strong market for Italian investors. In the backdrop of the upcoming Expo 2020, more Italian investors are expected to initiate the process of business setup in the UAE.
Here we are presenting to you the top reasons why the company formation in the UAE should be a top preference for the Italian investors.
A Rock Solid Trade Connection
Italy and the UAE are linked together through a solid trade partnership that continues unshaken to date. In 2019 Italian exports to the UAE totalled 4.6 billion Euros, which attests to the strength of the bilateral trade ties. Machinery and jewellery were the critical exports from Italy to the UAE, followed by food and consumption goods, fashion and furniture. Italy expects its exports to the UAE to grow even amidst the hubbub created by the COVID-19 pandemic. Overall, a positive trend is expected in 2021 in terms of company formation in the UAE.
New Cooperation on Innovation
The Italian Embassy in the UAE will launch a new project to ensure mutual cooperation in innovation in vital sectors. The project named ‘InnovItalyUAE’ will cover sectors such as cybersecurity, space research, smart cities, life sciences, food technologies, renewable energy and circular economy. The project will set the scope for an increased partnership in the above sectors. The partnership on innovation will benefit entrepreneurs who wish to set up startup businesses in the UAE.
Already Strong Presence in the UAE
There are more than 80 Italian companies operating in the UAE in a wide range of business sectors. The core sectors of business activities are oil & gas technology and exploration, civil engineering, consulting and contracting, energy engineering, banking, airline and shipping lines, trading (marble, furniture, heavy and construction equipment and vehicles), foodstuff trading, steel production, refrigeration, etc. New entrepreneurs who wish to set up a company can avail of the services of business setup consultants in the UAE.
Key Agreements for Bilateral Investments
The UAE and Italy signed a Double Taxation Avoidance Agreement (DTA) in January 1995, and it came into force in November 1997. The DTA helps the Italian investors to avoid being taxed in two countries simultaneously. Apart from the DTAs, the two countries have signed an agreement for the protection of investments in January 1995. Also, Italy has set up a 1 billion Euro worth fund to assist technology firms and startups grow and establish joint ventures with other companies in the UAE and other foreign countries.
Able Support for Businesses
Organisations such as the Italian Trade Commission is promoting bilateral trade, giving assistance and consultancy to the Italian companies incorporated in the UAE. The Trade Commission provides assistance to companies by arranging promotional activities and support for SMEs. Other organisations such as Dubai Future Foundation and Dubai Chamber also provide assistance in the form of financing and promotions etc.
Great Opportunity for Doing Business
Unlike in the past, the business setup opportunities in the UAE have improved with the enactment of a host of reforms. The UAE has ratified the FDI law recently, which allows 100% ownership for investors in their mainland companies. Earlier, the foreign companies were required to grant 51% of the shares to a UAE national who acts as the local sponsor. Now, the ownership regime has become more solid with the introduction of the opportunity for full foreign ownership. However, the law is applicable to selected activities in Manufacturing, Agriculture and Services sectors. To know more about the applicable activities and other requirements, consult with the best business setup consultants in Dubai, UAE.
How Can Business Setup Consultants in Dubai Assist?
The UAE is the most preferred destination for Italian investors who wish to establish their presence in the Middle East. The love for UAE stems from the strong trade relationship both countries have been maintaining for a long time. The enactment of FDI Law, new business opportunities and the DTA agreements make the process of business setup in the UAE appealing for Italian investors. However, new investors need to be cautious about the UAE labour laws and immigration laws before incorporating their companies.
This is where the legal know-how of reputed business setup consultants in Dubai, such as Jitendra Business Consultants (JBC) can help foreign investors. JBC has a team of highly qualified company formation specialists who will ensure a hassle-free business setup process. JBC also provides services such as 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.