When COVID-19 hit the world in 2020, the countries that were deemed to be invincible appeared to be perturbed due to the lack of a proper contingency plan. The pandemic battered their economy, and seemingly, many of them are still struggling to push past the pandemic. The UAE, however, happened to be among the few countries that successfully managed to prevent its economy from falling apart. The focus on digital transformation helped the government in finding promising opportunities for business setup in the UAE amid the downturn.
From e-commerce & e-gaming to cryptocurrencies, the landscape of company formation in the UAE is abuzz with lucrative business opportunities. The shift to the 'digital' has proven to be a watershed moment in the way of doing business in the UAE. New entrepreneurs, however, should study and analyze the aspects of such opportunities before starting a business. Business setup consultants in Dubai, such as Jitendra Business Consultants (JBC), can guide investors about new developments and requirements.
Here is a list of new avenues of company formation foreign investors must explore:
Future is Bright for E-gaming Companies
Online gaming turned out to be one of the preferred forms of entertainment across the world in the post-pandemic era. People across the globe found e-gaming as an effective remedy to fight isolation and anxiety during the lockdown. However, the UAE had recognized the power of e-gaming long before the lockdowns as Etisalat launched a cloud gaming service (eLife) in 2019 to promote e-sports in the country.
The UAE is ranked as the 35th largest e-gaming market in the world in terms of revenue. Further, the global gaming market is estimated to reach USD 200 bn by 2023, which promises a bright future for e-gaming entrepreneurs. Free zones such as Ras Al Khaimah Economic Zone (RAKEZ) and twofour54 (Abu Dhabi) offer affordable options of business setup in the UAE for gaming entrepreneurs. With guidance from business setup consultants in the UAE, the incorporation process will be easy for gaming investors.
Dubai Turning into a Crypto Centre
The UAE is one of the prominent countries in the Middle East to recognize the power of cryptocurrencies, especially Bitcoin. In a post-pandemic world, cryptocurrencies like Bitcoin have emerged as a viable option for UAE-based investors planning to diversify their investment portfolios. Dubai is an ideal option for investors planning to set up a crypto business as the emirate is home to fintech hubs such as Dubai International Financial Centre (DIFC) and Dubai Multi Commodities Centre (DMCC). Another free zone, Dubai Silicon Oasis (DSO), hosts the Bitcoin exchange BitOasis.
This year, DMCC has signed a memorandum of understanding (MoU) with the Securities and Commodities Authority (SCA) to create a regulatory framework for crypto businesses. As per the MoU, crypto investors aiming for business setup in Dubai can engage in issuing, listing, and trading of crypto assets in DMCC. Investors can start a business by obtaining trade licenses provided by DMCC Crypto Centre. DIFC regulator Dubai Financial Services Authority (DFSA) is also furthering its plans to draw up a new regulatory framework for cryptocurrencies, which may be finalized by 2022.
Great Strides Achieved in E-commerce
E-commerce is widely recognized as the ultimate winning sector to emerge out of the pandemic in flying colors. Latest estimates state that e-commerce sales in the UAE may touch USD 27 billion by 2022. The growth prospects for e-commerce business in the UAE brightened in the aftermath of the pandemic as restrictions forced people to practice social distancing. Both mainland authorities and free zones are offering affordable e-commerce licenses in Dubai.
Depending on the activities, entrepreneurs can choose a license that fits their business requirements. Nearly all the UAE free zones provide e-commerce licenses for the investors, but the government has set up two new free zones that specifically cater to the e-commerce industry. EZ Dubai and DubaiCommercity are the new free zones that provide a robust infrastructure for e-commerce company formation in Dubai. The advice of company formation consultants in Dubai will come in handy for foreign entrepreneurs before approaching the respective free zones.
Why Establish a Company in the UAE?
The UAE continues to be a strong magnet for foreign investments on account of the proactive stance of the government towards identifying and supporting new business opportunities. Gaming, e-commerce, and crypto are some of the new opportunities that investors must explore in 2021. The government has set up an investor-friendly environment of business setup in the UAE in the form of the COVID Vaccines, 100% foreign ownership in selected sectors for the mainland, long-term visas, and citizenship for expatriates.
The newly emerging opportunities and government reforms have made this an ideal time for setting up new businesses in the UAE. However, investors making their first move into the UAE need to gain in-depth knowledge about the company formation procedure. Setting up a company in the mainland differs from company formation in the UAE free zones. Since a lack of proper knowledge will adversely impact the business, the assistance of Jitendra Business Consultants (JBC) would benefit the investors. JBC's business setup advisers guide the investors with services including selection of right legal structure, visa processing, bank account opening, etc. JBC also helps the companies comply with regulations including Anti-money Laundering (AML), Economic Substance Regulation (ESR), and Ultimate Beneficial Ownership (UBO).
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