Najla believes that there are both economic and legal incentives for companies to invest in the UAE.

- The infrastructure is well developed and the services needed in particular industries, such as IT, are extensive. UAE has also become a center of expertise in many fields and many international exhibitions take place in Dubai. It is a great place for networking.

Free zones facilitate establishment
There are a number of free zones where it is particularly easy for foreign companies to set up: in a free zone, a company can be owned 100 percent by a foreign operator, unlike in other UEA countries where a local party must own at least 51 percent. It is free to send both capital and profits to the home country, the company does not need to pay export duty for re-export goods or goods sold in the free zone. No corporate taxes are levied - the number of tax-free years varies from one free zone to another and duty-free time can often be extended.

- In the free zones, they are trying to minimize paperwork for companies wishing to establish themselves there. One can, for example, arrange all permits in one place and do not need to go around to different offices to obtain a visa, sign it, organize labor state, premises, housing, etc.. We want to minimize bureaucracy so that businesses can instead focus on their core business, "says Najla.

The free zones are often but not always niched towards various industries. Most free zones are in Dubai.


Important preparations
Establishment possibilities are good in most industries, according to Najla.

- Of course, companies must follow the rules that apply to each industry, such as health care, but it is hardly an obstacle. Recently, for example, they opened a new clinic for diabetes care, which will be operated by a Swedish company.

The openness towards foreign investors is high in the UAE and work is constantly in progress to make it even easier to set up. They are discussing an introduction of a new law that would allow one hundred percent foreign ownership of companies in the UAE outside free zones.
Najla advices company wishing to establish themselves in the UAE to prepare carefully by studying the market and consider all options in the region. It is also important to find out what rules relate to the establishment and operation of the company, which a permit is needed and what charges should be paid.

- Then, you should contact authorities in the free zone you wish to establish business.

Be aware of cultural differences
Being aware of cultural differences can be a quite important part of a foreign establishment. In the UAE, the respect for different cultures is great. There are 190 different nationalities living in the country and they can all live according to their culture and, for example, are free to celebrate their festivals. Those of foreign origin should in turn take be aware of that the UAE is a Muslim country.

- We must respect the host-country´s culture. There are, for example, restrictions on alcohol and you may need permission for large parties. Another thing to consider is that some women prefer not to shake hands, therefore one should always let the woman initiate any handshake, says Najla.

She points out that the UAE has been very open the last twenty years. There has been a broad consistent interaction of businesses consistent with international standards.

- However, it is worth keeping in mind that you probably will not just do business with people from the UAE. Given the many nationalities and cultures represented in the country, it is difficult to give a general advice about the cultural aspect, concludes Najla.


                                                                                    Cecilia Helland