In the UAE forum held with Saudi Arabia, the UAE was granted many different exemptions and facilities in order to promote investment and industry in the country. In this simplified article, learn about the conditions for investing in Dubai for Saudis, so you can move forward and achieve your goal towards a successful investment in Dubai.
Learn about the investment conditions in Dubai for Saudis
For Saudi investors who want to invest in Dubai, there may be some additional considerations or special conditions to take into account. Here are some points that Saudi investors should take into consideration:
- Visa and work permit: Saudi investors need to obtain a residence visa and work permit to carry out commercial or investment activities in Dubai, and these licenses can be obtained from the competent authorities in Dubai.
- Banking rules and regulations: Banking rules and regulations in Dubai may differ from those in Saudi Arabia, so Saudi investors should check local rules regarding bank accounts and cash transfers.
- Taxes: Saudi investors should check the tax laws and regulations in Dubai and how they affect their business and investment operations.
- Language and Culture: Understanding the local language and culture in Dubai can impact your work and communication experience, so it may be beneficial to become familiar with the English language and some local customs and traditions.
- Local Partnerships: In some cases, local partnerships may be necessary to conduct business or investment activities in some sectors in Dubai, so Saudi investors should carefully consider the available options.
- Licenses and Permits: Some business activities may require obtaining licenses and permits from local authorities in Dubai. Foreign investors must comply with all local laws and regulations related to business activities.
- Minimum Capital: There may be minimum capital requirements to establish a company or invest in some sectors. Investors should check and adhere to the necessary capital requirements.
- Registration and Taxes: Saudi investors must register their companies and businesses and adhere to local tax regulations.
Respect local laws: Foreign investors must adhere to all local laws and regulations in Dubai, which include intellectual property, labor, real estate, and other laws.
What facilities does Dubai provide to Saudi investors?
Dubai actually offers some special facilities and benefits to Saudi investors, and this comes as part of its endeavor to attract investments from Saudi Arabia and strengthen economic relations between the two countries. Among the facilities that can be expected for Saudi investors are:
- Support and encouragement programmes: The Dubai government may provide tailored support programs for Saudi investors, such as temporary tax exemptions or financial support for promising projects.
- Facilitated treatment: Government agencies in Dubai can provide easy and quick procedures to facilitate the establishment of companies and achieve investment transfers for Saudi investors.
- Strategic Partnerships: The government could strengthen relations between the private and public sectors in Dubai and Saudi Arabia, providing Saudi investors with opportunities to partner with local companies in Dubai.
- Financial Facilities: Banks and financial institutions in Dubai may provide special financial facilities to Saudi investors, such as investment loans and real estate financing on favorable terms.
- Government channels: Saudi investors can obtain support and assistance from government channels in Dubai dedicated to guiding investors and providing the necessary advice and information.
Dubai is considered a preferred place for Saudi investments due to the strong relations between the two countries and the facilities provided by the UAE government to attract Saudi investors. However, these facilities are not exclusive to Saudi investors only, but can also benefit investors from other countries.
Learn about the best real estate investment places in Dubai
Advantages of investing in Dubai for Saudis
The infrastructure in the State of Dubai has been classified as the best in the world, as it may help Saudi investors and other business owners work to achieve all the goals related to excellence in their businesses. Dubai Airport has been classified as one of the best international airports in the world. It is distinguished by the fact that it is uniquely designed and may provide more than 130 airline companies to provide freight and transportation services to passengers from Dubai to any other country and from any foreign country to Dubai. It may enjoy a distinctive set of facilities, which are electricity, water and sanitation, designed in a professional manner commensurate with the level of… Visitors in Dubai.
The private trade sector has also been characterized by significant growth and has achieved high fame in the past few years. The best international brands in all fields can be found in the Emirates, and this is what made Dubai the distinguished center for trade and investment and it has become a distinctive economic front, sourced from oil, which has made the entire world respect the Emirates. It is considered one of the European countries that occupies a high position in the middle of the world, and the Emirates is distinguished by many different industries of gold, diamonds, precious stones, expensive metals, pearls, fashion and jewelry, all of which carry distinctive and elegant tastes.
Investment conditions in Dubai for Saudis
The tax system in Dubai was based on a set of factors that are completely different from an individual’s salary in Dubai. Taxes on capital gains were prohibited and there are also no withholding taxes, but companies operating in oil are required to pay taxes on profits, and it has been There are a set of attractive financial incentives for them, such as tax exemption for 15 years, and this period can be increased. It also provides investors with the right to own 100% foreign ownership, which reduces the possibility of resorting to a local partner.
Dubai always seeks to enhance economic and investment transformation and provide a suitable environment for businesses and investors from various countries of the world, including Saudi investors. Here are some key aspects of Dubai’s economic and investment transformation and how Saudis can benefit from it:
1. Suitable investment environment: Dubai provides an investment environment based on economic freedom and facilities for businesses. There are a number of free zones and special commercial zones that provide tax exemptions and facilities to companies.
2. Promising sectors: Dubai focuses on developing promising sectors such as technology and innovation, tourism and hospitality, logistics and transportation, and creative and cultural industries. These sectors provide great investment opportunities.
3. Free zones and investment facilities: Saudis can establish their companies in Dubai’s free zones with access to government facilities and tax exemptions.
4. Digital Economy: Dubai is transforming into an advanced digital economy, and this provides great opportunities in the field of technology and innovation.
5. Facilitated investment laws: There are continuous improvements in investment laws and legal systems to facilitate the investment process and provide protection for investors.
6. Facilities for Saudi investors: Providing facilities and benefits to Saudi investors through bilateral agreements between Dubai and the Kingdom of Saudi Arabia.
7. Excellent logistics network: Dubai has a strategic location and advanced transportation and shipping infrastructure, making it a center for global trade.
8. Education, research and development: Dubai invests heavily in education, research and development to provide the professional personnel and innovation necessary to support the economy.
9. Social and cultural life: Dubai provides a diverse and open social and cultural life environment that suits different cultures.
To benefit from the economic and investment transformation in Dubai, it is preferable to work closely with local legal advisors and consulting offices specialized in the field of investment and company establishment. Saudi investors can search for suitable opportunities and benefit from the dynamic economic environment in Dubai.
Legal forms of investment in Dubai for Saudis
Individual enterprise
This type of legal form for establishing a company in Dubai for Saudis includes only one person to own the company and is subject to the regulations of the Department of Economic Development. This type of institution can work in a number of commercial, industrial and professional activities.
It is characterized by:
- Ease of establishment and cancellation.
- Only one person has the right to profit and loss and that is the owner of the company.
- The costs required to establish a company in Dubai for Saudis are low.
- Personal income is not taxed.
One person company
An LLC is owned by only one person and is similar to a sole proprietorship except for a few small differences.
It is characterized by:
- Limited liability.
- Ease of establishment and cancellation.
- Control and control are solely vested in the owner of the company.
Investment conditions in Dubai for Saudis
Civil works company
It is considered a business partnership for professionals of any nationality and the laws and regulations of the Department of Economic Development stipulate that only one director can be appointed for the company. It is characterized by:
- Partners bear the risks and benefit from the profits.
- No taxes on personal income.
- Costs are average.
A limited liability company
The most common legal form for establishing a company in Dubai for Saudis, thanks to the many options it offers for various commercial, industrial or professional activities. It is characterized by:
- Unlimited number of visas.
- The sponsor does not affect the workflow.
Branch of a foreign company
Many foreign investors want to expand their business and establish companies or branches in Dubai. This type lies in providing advantages to the parent company in terms of promoting its services and products in Dubai. The branch must bear the same name as the parent company and provide the same services or products that it provides. It is characterized by:
- Full returns on capital and profits.
- There are no restrictions on currency.
Representative office
It is a legal form of establishing a company in Dubai for Saudis. It is a commercial activity that a branch of a foreign company can carry out to promote the services of the parent company. To establish this type, a local agent is required to communicate with the competent government authorities in Dubai to obtain licenses and carry out the required procedures.
Experiences of successful Saudi investors in Dubai
Dubai has great investment opportunities, and many Saudi investors have successfully invested in the city. For example, Sheikh Saleh Kamel, the main founder of the National Industrialization Company in Saudi Arabia, invested in Dubai Industrial City and Emaar Properties. Saudi Naeem Al-Sheikhi also invested in real estate projects in Dubai, and achieved great success in this regard. The matter is not limited to these two examples only, as many Saudi investors count their successes in Dubai and continue to invest in the wonderful city.
The experiences of successful Saudi investors in Dubai reflect a great diversity in the investment fields and sectors in which they invested. Here are some examples of the experiences of successful Saudi investors in Dubai:
- Real estate investment: Many Saudi investors have purchased real estate in Dubai, whether for personal residence or for rent. Dubai offers real estate investment opportunities thanks to its active and well-regulated real estate markets.
- Startups and Technology: Some Saudi investors have chosen to invest their money in startups and technology projects in Dubai. These sectors are witnessing rapid growth in the city.
- Hospitality and Tourism: Due to the increase in tourism in Dubai, some Saudi investors have opened hotels, restaurants, and entertainment facilities.
- Financial investment and banking: Dubai is an international financial center and attracts many Saudi investors to the financial sector and banking.
- Education and Health: There are Saudi investments in the education and health sectors in Dubai through the establishment of schools, universities and hospitals.
- Medical Tourism: Due to the medical development and excellent healthcare in Dubai, some Saudi investors have begun investing in medical tourism projects.
- Investing in the stock market: Some Saudi investors buy and sell stocks on the Dubai Stock Exchange and the Abu Dhabi Stock Exchange and benefit from shifts in the stock markets.
It should be noted that success in investment depends on good research, analysis, understanding of the local market and strategic direction. You should also have local financial or legal advisors to help you make the right decisions and comply with local controls and regulations.
How to invest and establish a company in Dubai for Saudis
Establishing a company in Dubai for Saudis is one of the forms of investment in Dubai , which embraces all nationalities from different countries of the world. The Saudi investor can invest his money in establishing companies and projects in the city of Dubai or one of the free zones in Dubai that are appropriate to the nature of the activity to be practiced.
There are several steps necessary to invest in Dubai for Saudis and to establish a company in Dubai, which we will review in the following lines in this article.
The Saudi investor must follow steps to invest in Dubai. These steps include procedures for establishing a company in Dubai for Saudis:
Steps to establish a company in Dubai for Saudis
Determine the type of activity:
The first step in establishing a company in Dubai for Saudis is determining the type of activity for the company, as it provides information about the appropriate type of license.
- Determining the legal form: Determining the legal form of the company is the second step in establishing a company in Dubai for Saudis, such as: joint-stock company, public joint-stock company, private joint-stock company, limited liability company, and others.
- Trade name registration: Choosing a trade name for the company and registering it according to the terms of the Department of Economic Development, as the trade name is what distinguishes one company from another.
- Obtaining initial approval: Establishing a company in Dubai for Saudis requires obtaining initial approval to start work in Dubai, which is obtained from the relevant authorities.
- Choosing the company’s headquarters: Buying or renting a workplace for the company that has the necessary licenses. There are many offices in Dubai.
- Approval of the relevant authorities: Obtain additional approval from the authorities concerned with the activity, such as: the Ministry of Defense and the Ministry of Interior.
- Obtaining a commercial license: Receive the commercial license, pay all fees for the license, and join the UAE Chamber of Commerce as a member.
Steps to open a commercial register to establish a company in Dubai for Saudis
- Attach the documents that you previously submitted to obtain the commercial license and send them to the Department of Economic Development.
- Ensure that all commercial license fees are paid within 30 days from the date of payment authorization.
- Registering with the UAE Chamber of Commerce as a member in order to start a commercial activity.
- Obtaining an official commercial license is one of the procedures for establishing a company in Dubai for Saudis.
- A payment authorization is issued, which includes the initial approval fees that must be paid, the trade name reservation, and the trade license issuance fees.
Conditions for a Saudi investor to reside in Dubai
One of the conditions for investing in Dubai for Saudis is to obtain a residency permit. A Saudi investor in Dubai can easily obtain residency after establishing his project or company and adhering to all the necessary conditions for establishing a business in the country. Once this is achieved, the country offers the investor an opportunity to reside, and some investors may be granted golden residency, which has many additional benefits.
By choosing to establish a company in Dubai as a Saudi investor, this step is an important opportunity to expand your business and benefit from the thriving economic environment in the UAE. By adhering to the conditions for investing in Dubai for Saudis and the necessary procedures, you can begin your entrepreneurial adventure in Dubai with confidence and reassurance. After completing all the procedures, residency in Dubai becomes a possible reality, giving you the opportunity to benefit from more of the advantages that the emirate offers as a global business center. It is a new step towards success and development, which will certainly contribute to achieving your goals and aspirations in the international business world.
