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Investing
in Dubai
Dubai encourages foreign direct investment and
has a healthy investment climate. While the Federal
Commercial Companies Law No 8, enacted in 1984
and fully enforced in 1993, regulates that businesses
in the UAE should have 51 per cent national equity,
businesses in the free zones can be fully owned
by foreigners. To incorporate a business outside
the free zone, a UAE national sponsor and a trade
licence is essential. Foreign companies are also
required to register with the Dubai Chamber of
Commerce and Industry.
The Jebel Ali Free Zone (JAFZA), established in
1985, is built around the Jebel Ali Port , and
provides companies with all assistance needed
to set up businesses easily. The first free zone
in the world to hold an ISO 9001:2000 certification,
JAFZA today has 5,500 businesses from over 110
countries, including over 100 Fortune Global 500
companies.
The Dubai Airport Free Zone, located near the
Dubai International Airport, is another free zone
area that offers investors easy business incorporation
facilities. The Dubai Internet City , Dubai Media
City and Knowledge Village too offer tax-free,
total ownership business incorporation for foreigners.
Tax benefits
No personal income tax is deducted from the wages
and salaries paid to employees or on the income
earned.
Dubai 's taxation treaties are aimed at making
the city a more attractive territory for foreign
corporations to set up business. There are taxation
agreements with Algeria, Jordan , Sudan, Syria,
Kuwait , Yemen, Egypt, Finland , France, India,
Malta , Pakistan, Poland, China , Germany, India,
Indonesia , Italy, Malaysia, Poland , Romania,
Singapore, South Korea , Sudan, Algeria and Turkey
.
Goods imported into the free trade zones are exempted
from import duties.
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