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Why do the Chinese entrepreneurs set up their business in the UAE?

ublcsp on Business Product

https://www.ublcsp.com - Chinese business activity has increased in the UAE in the past years and has decided to do International investment. UAE has become the favourite spot of investors due to the steady recovery in terms of GDP. The Chinese cooperation to have a trade connection with the Gulf and the Middle East, the UAE has a vital role in this. The UAE- China connection is growing year by year. The real estate prices in China is very expensive and thus to initiate a business in the UAE is much more convenient with the affordable price.

China’s Silk Road Project

To do investment and trade in 2018 the UAE and China have signed a Memorandum of Understanding (MoU) on the Silk Road initiative. The establishment of a strong connection at the Al Maktoum Airport by China has made the transport of goods to other regions much easier. These are the reasons to choose UAE and being the Commercial Capital Dubai can witness everything.

Belt and Road initiative (China-UAE)

This is an initiative to connect Asia, Europe and Africa. The aim of this Belt and Road initiative is infrastructure development and economic integration which in turn will create opportunities for Chinese investors. This will also create other joint ventures and commercial arrangements between the UAE and China. Chinese companies signed to deals with the UAE like the ‘Trader’s Market’ (store and ship Chinese goods) and ‘Vegetable Basket'(food manufacturing and processing)

The Real Estate Sector

The real estate growth between China and UAE by 64% in 2016 has grown to 70 % in 2019. This is because the real estate price is affordable and convenient in the UAE compared to China. Other appealing deals are high rental yields, affordability, and freehold ownership. To grow the Chinese investments in the country the Dubai Land Department has opened two representative offices.

The company formation process is easier

Other than certain legal and regulatory requirements initiating a company in the UAE is much easier for the Chinese or foreign investors. Even though it depends on the business activities carried out, there are a lot of business to be set up in the UAE like:-

Joint-stock companies
Representative offices
Freezone companies
Foreign company branches
Limited liability companies
Hybrid companies
In the commercial companies’ law, the formalities and requirements for initiating a business are mentioned and for each emirate, the government departments may vary.

If you are planning to start a business, get in touch with us.

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