The UAE is the world’s 4th largest economy in the Middle East. It has a GDP of 1.83 trillion dirhams and $415 billion. 

So, what is the reason behind this lucrative growth in the UAE market? YES! You guessed it right. It’s because they have diversified their economy rather than relying on one niche of oil and gas. 

It also means there are lots of diversified opportunities to look for. The good news is they all are not saturated and have enough opportunity to grow a business. 

It is also expected that the UAE economy will grow up to 5.7% in 2024. 

Do you also want to avail this opportunity and grow your business in UAE but are confused about what could be the ideal niche to get a start? Buckle up your sleeves as in today’s guide we will share the 10+ booming industries to look at in the UAE. 

Robotics

The UAE is a world leader in robotics. Mohammed bin Rashid Space Centre spearheaded an ambitious space program. Dubai also wants to be a global hub for robotics by 2030. This initiative will add AED10 billion in the country’s economy and provide opportunities for both local and international robotics firms.

The robotics sector in UAE is said to have received investments of up $15 billion. This is the largest sum anywhere in the world.

You will benefit from anything that has to do with Robotics. You can use robots for cleaning, selling or renting them.

Education and Research

UAE Vision is centered on education and research. Its government has also made significant investments in the educational infrastructure. For example, the Mohammed bin Rashid University of Medicine and Health Sciences and Abu Dhabi University are the forefront of the educational revolution in UAE.

Nowadays, STEM (Sciences, Technology, Engineering and Mathematics) education in the UAE is also a key component to prepare next generation to be innovators. This ecosystem is crucial for nurturing talent and producing breakthrough research.

3D Printing

3D Printing is another industry that has experienced rapid growth in the UAE. It could become a necessity for every person.

The government also has some ambitious goals. One of them is the Dubai 3D Printing Strategy, which aims to make Dubai a global hub for 3D printing before 2030. In addition, the strategy includes plans to 3D print 25% of new buildings in Dubai by 2030. The UAE is committed to integrating 3D technology into various sectors, including construction, manufacturing and healthcare.

Tourism

It is no surprise that the UAE has become a tourism hub. With over 11,5% of the GDP, it is a major contributor to economy.

Every year, millions of tourists flock to the UAE. It has wide range of attractions including Burj Khalifa and the Louvre Abu Dhabi. The UAE is also popular tourist destination because of its excellent connectivity and strategic position.

Mega events such as the Dubai Expo played a major role in making the UAE an attractive holiday destination.

Real Estate and Construction

UAE is home to some stunning buildings and an excellent infrastructure. It is no surprise that the UAE real estate market attracts many foreign investors. The real estate and construction industry of UAE is expected to continue growing in the upcoming years.

This sector has grown at a rate of 5.5% per year between 2021 and 2025.

A significant economic growth is also been witnessed recently. All thanks to mega-projects like the Dubai Creek Tower and the Expo 2020 site.

Management Consultancy

UAE has a bit complex business setup process that demands a thorough understanding of UAE laws, rules and regulations. This complex climate has created a huge a demand for the management and consulting services businesses. Whether someone have a marketing agency, real estate business, e-commerce or is related to tourism – all need valid licensing to legally operate in the UAE. 

The annual expected growth rate is 6% for the consulting industry. It reflects that the UAE has a complex business setup process that needs expert assistance. 

Hospitality

Supporting its hospitality industry is the UAE’s reputation as a global tourism hub. Expo 2020, and the UAE’s commitment to providing exceptional experiences for guests are driving growth. The growth of tourism and the increasing number of business conferences has also led to an increase in demand for quality services.

This category has a very important business setup process. Our UAE business setup specialist can assist you in obtaining the necessary licenses without hassle.

Cleaning Business

The UAE’s service industry is a big one, but cleaning is often forgotten. Investors can still set up mainland or free zones businesses under this category. This is a necessity for every office, home, and business.

The market for cleaning services will grow at a compound annual rate of 5% over the next five years. This industry offers a low-cost business model that doesn’t require a lot of investment.

How amazing is it!

E-commerce

A sudden growth in ecommerce has been observed after the Covid-19 outbreak. The e-commerce market is expected to grow $27 billion by 2022 due to the high internet penetration rate and tech-savvy population. Amazon and Noon.com dominate the market. They provide a wide range of products and services to meet the ever-changing needs of consumers.

What Can We Do To Help You?

The UAE offers a wide range of exciting opportunities in a variety of industries. This includes robotics, education e-commerce and hospitality.

It is the perfect time for entrepreneurs who want to establish their businesses in this dynamic industry. We are business consultants in the UAE and we can guide you every step of the way, regardless of whether you want to start a business on the mainland or a free zone. We ensure that your business is launched with ease.

You may already have a successful business in another country, but you want to take advantage of the lucrative UAE market. You might want to do so because the UAE offers multiple benefits to foreign investors. These include 100% ownership and a permit for commercial activities.

A branch in the UAE can be done for any reason. All you need is to appoint an agent in the UAE, submit a request, get initial approvals, and then you can apply for your license.

In today’s guide, we will discuss the ultimate requirements and cost to open a branch business or office in UAE, followed by a step-by-step guide on how to do so. 

Let’s get started!

What is a branch business in the UAE?

You may want to expand your business outside of your home country if you are a foreigner. Dubai or UAE is the ideal place to do so, and this is where a branch business or office comes in to help.

It is a branch of your parent company abroad. It is a branch that operates under the name of its parent company, where the parent is responsible for the liabilities and obligations incurred by the branch.

Still, branch businesses require licenses to set up a business on the Dubai mainland or in a free zone. With that, like any other company, it is also required to submit necessary documents like power of attorney, memorandum of association, and more. 

Let’s dig deeper to find out what the requirements are for opening a branch in Dubai.

Requirements for opening a branch office in Dubai, UAE

Documents required to obtain a business license in Dubai, UAE, can vary based on your type of business and which emirate you plan to establish.

Here are some general guidelines on documents that you may need to submit.

Parent Company Documents

• Certificate of Incorporation
• MAA also known as Memorandum and Articles of Association.
• Board Resolution authorizing the establishment of a Dubai branch
• No Objection Certificates (NOCs) from the parent companies
• The passport copies of the directors of the parent company

Branch Office Documents

• Forms for registering a branch office
• Trade name reservation certificate
• Power of attorney for the Branch Manager
• Lease agreement for office premises
• Branch manager passport copies

Local Service Agent Documents

• Copy of passport and Emirates ID for the Local Service Agent
• If applicable, a trade license for the LSA
• The LSA will also need a power of attorney to act in your place.

Additional Documents

• Business Plan (may be required)
• Financial statements from the parent company may be required
• Other documents specified by the Department of Economic Development or other relevant authorities.

How to open a branch office in Dubai?

Find a local service agent

So, you are a foreigner and you already have a business in your home country. The first thing you should do to set up your branch business in Dubai is find and hire a local service agent, or LSA.

A LSA is essential because it will represent you in the UAE and handle all the legal complications of licensing and registration, including trade name registration.

A Local service agent is also needed because most documents are in Arabic and it is important to have someone who understands the complexities of such documents. They cannot take part in management decisions, and they only charge a fee yearly instead of capital gains.

Fill out your Branch Office Application

You can now apply for initial approvals after you have appointed an LSA to perform the necessary legal tasks, such as registering your company name and gathering the required documents.

Your local agent will assist you with this. He will make sure that the application is error-free and act on your behalf to secure your branch license.

Get Initial Approvals

After you’ve submitted your application, you will need to wait for the initial approval.

Initially, you will get approval from the Ministry of Economic Development (MED), which will be a formal agreement. Later, MED will forward the application to the next authority, which is the Federal Foreign Companies Committee. 

You don’t need to worry because MED will take care of applying to the Federal or Local Foreign Companies Committee. If all goes smoothly, you’ll get the license you need to start your branch in Dubai.

MED can issue you a license

MED will then issue you a permit or license once the Federal Foreign Companies Committee has approved your application. This will also be a permit to engage in commercial activities within the UAE. It may also define the types of commercial activities that you can engage in, depending on what you choose when you apply. So, be careful.

Branch Business License

Business licenses are usually issued by the Department of Economic Development. Once you have received your initial approvals, from MED and Federal Foreign Companies Committee, it is time to apply to DED for the final licensing.

The DED will review both of your initial approvals. If everything goes well, they will grant you a final business license.

Register with Commercial Authorities

The game is not over!

After obtaining a DED license, the final step is to register with the commercial authorities. This includes registering with the local department.

For instance, you have to register your branch company with the Dubai, Chamber of Commerce, if planning to operate in Dubai. 

What is the cost of opening a branch in Dubai?

It is difficult to estimate the exact cost of opening a Branch in Dubai. It can cost around 100,000 dirhams. The general startup costs of AED 50,000 are also included.

Any change to UAE regulations and rules can affect the costs associated with opening a brand office.

Need Help?

We will conclude by stating that the process of obtaining a license for a branch is crucial and requires an in-depth knowledge of UAE laws. You can lose time and money if you make a mistake.

Don’t worry, HM Corporate can help you with their most experienced team. They understand these complexities well and will guide you at every step.

Contact us now!