United Arab Emirates

KGRN Accounting Associates, United Arab Emirates – Global Accounting Alliance Member

Economic Overview & Business Opportunities

Located in the Middle East region of Asia, the United Arab Emirates (UAE) enjoys a strategic location on the new Southern Silk Road between Asia, Europe and Africa, a situation that provides optimum trading conditions. UAE is situated at the tip of the Arabian Peninsula, bordering Saudi Arabia and Oman and is one of the GCC (Gulf Co-operation Council) States. UAE consists of seven emirates: Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah. Home to a population of 9.3 million people, UAE’s population is equivalent to 0.13% of the total world population.

According to the World Bank, the UAE ranked 26^th out of 190 countries in the 2017 Doing Business ranking. As of now, the economy of the UAE is the second largest in the Arab world (after Saudi Arabia), and is among the most diversified economies in the Middle East. UAE economy managed to weather through the challenges of lower hydrocarbon prices. The fast-growing economy in UAE which includes the thriving tourist industry has attracted interest and investment from around the world. Tourism has grown tremendously with state-of-art facilities and good weather, which has attracted foreign visitors and spurred the economic growth.

The UAE ranked the 9^th largest FDI recipient in Asia according to the 2016 Global Investment Report published by UNCTAD. UK, Japan and Hong Kong are the main investors in UAE. The strengths of the UAE’s economy include the easy access to oil resources in the country, low energy costs, diversified economy and strong purchasing power. Furthermore, the absence of direct business taxation (where banks, oil companies and telecommunications operators are not included) and income taxation, of exchange controls, the existence of a strong and profitable banking sector, as well as the large pool of foreign talents are the country’s strengths that contributed to the booming economy. The seven Emirates have implemented measures to create a good investment climate for foreign investors. Dubai, Sharjah and Abu Dhabi have implemented flexible rules concerning the acquisition of real estate property by foreigners.

Widely known as the politically and economically stable country within the Middle East region, UAE welcomes foreign investments with its diverse, expanding economy and investor-friendly government policies. If you are thinking of venturing into the Middle East, UAE is undeniable one of the investment hotspots.

Mr.Gopu Rama Naidu
Founder and Managing Partner