Dubai is considered one of the most prominent global destinations for business and investments, as it is characterized by advanced infrastructure, a stable economic environment, and supportive laws for business, making it an attractive choice for investors from all over the world, including the Kingdom of Saudi Arabia. Establishing a company in Dubai for Saudis provides many opportunities and advantages that can contribute to significant business growth and expansion.
Dubai is considered a major gateway to regional and international markets, and is distinguished by its strategic location linking the East and the West. This unique location enhances companies’ ability to access new markets in Asia, Africa and Europe easily. In addition, Dubai provides an advanced work environment that includes world-class logistical services, modern commercial facilities, and an integrated transportation network linking it to the world.
One of the aspects that makes Dubai attractive to Saudis in particular is the cultural similarity and common language, which facilitates communication and interaction with the local market. Moreover, the UAE and Saudi Arabia enjoy strong economic and political relations, which enhances the ease of doing business between the two countries.
In short, establishing a company in Dubai provides Saudis with an opportunity to benefit from a dynamic and supportive investment environment, with great facilities in procedures and infrastructure, and tax and legal advantages that make Dubai an ideal destination for business. By collaborating with specialized consulting firms such as Itqan, Saudi investors can achieve success and growth in the thriving Dubai market.
Advantages of establishing a company in Dubai for Saudis
Dubai is considered one of the leading investment destinations in the world and provides an ideal environment for establishing and operating companies. For Saudi investors, Dubai represents an exceptional opportunity to achieve growth and expansion in a prosperous economic environment that is in harmony with the requirements of the global market. In this topic, we will discuss the most important advantages of establishing a company in Dubai for Saudis.
1. Strategic location and economic diversification
Dubai is located in a strategic geographical location linking Asia, Europe, and Africa, which facilitates access to global markets. This location makes Dubai an important logistical and commercial center, and opens doors for Saudi companies to expand and flourish in new markets.
2. Tax exemptions
Dubai has an attractive tax system, as it does not impose taxes on personal income or corporate profits in many free zones. This enhances investment returns and reduces financial burdens on companies, which is a major advantage for Saudi companies looking for a comfortable tax environment.
3. Full foreign ownership
In many free zones in Dubai, foreign investors are allowed to own 100% of a company’s shares, providing great flexibility in managing and operating the business. This feature is very attractive to Saudi investors who want to have complete control over their investments.
4. Advanced Infrastructure
Dubai is characterized by an advanced infrastructure that includes modern facilities for transportation, communications, and logistics services. This includes international airports, global ports, and advanced road networks, which facilitate the movement of goods and people and enhance the efficiency of business operations.
5. Cultural similarity and common language
Saudis and Emiratis share a common culture and language, which facilitates the process of communication and understanding in the business environment. This enhances the chances of success for Saudi projects in Dubai and opens more effective communication channels.
6. Political and economic stability
Dubai enjoys a stable political and economic environment, which provides confidence and security for investors. Stability enhances companies’ ability to plan long-term and achieve their strategic goals without significant risks.
Areas of establishing a company in Dubai for Saudis
Dubai is considered a global center for business and investment, providing a favorable environment for various types of companies. For Saudi investors, establishing a company in Dubai opens wide horizons for success and prosperity in multiple fields thanks to the advanced infrastructure and supportive economic policies. Below we review some of the main areas that Saudis can invest in when establishing a company in Dubai .
1. Trade and logistics
Dubai is a major trade gateway linking East and West, making it a vital center for trade and logistics. Saudis can establish companies in the fields of general trade, import and export, distribution, shipping, and warehousing. These companies benefit from advanced infrastructure such as global ports and airports.
2. Real estate and construction
The real estate sector is considered one of the most attractive sectors in Dubai, thanks to the continuous growth in real estate projects and infrastructure. Saudi investors can establish companies operating in real estate development, property management, contracting, and architectural services. The real estate market in Dubai offers great opportunities thanks to the increasing demand for residential and commercial properties.
3. Financial services
Dubai is home to many global and regional financial institutions, making it an important financial center. Saudis can establish companies in financial services fields such as banking, financial consulting, asset management, and insurance. Dubai provides a strong and stable regulatory environment that supports the growth and expansion of these companies.
4. Technology and innovation
Dubai encourages innovation and technology through its various initiatives such as “Dubai Internet City” and “Dubai Technology City”. Saudi investors can establish companies operating in the fields of information technology, artificial intelligence, e-commerce, and financial technology (FinTech). These companies benefit from advanced technical infrastructure and ongoing government support.
5. Tourism and hospitality
Dubai is a global tourist destination, attracting millions of visitors annually thanks to its unique tourist attractions, luxury hotels and upscale restaurants. Saudis can establish companies in the fields of tourism and hospitality, such as hotel management, event organizing, medical tourism, and entertainment services. The tourism sector in Dubai offers great opportunities for growth and profitability.
6. Industry and manufacturing
Dubai aims to develop the industrial and manufacturing sector as part of its diversified economic strategy. Saudi investors can establish manufacturing companies in areas such as food industries, petrochemicals, electronics, and pharmaceuticals. Industrial zones and free zones provide an ideal environment for establishing and operating these companies.
7. Education and training
Dubai pays great attention to the education and training sector, which opens opportunities for Saudi investors to establish educational and training institutions. Schools, universities, and training centers can be established specializing in various fields such as information technology, business administration, and technical skills. Government support and the trend towards sustainable education enhance the chances of success in this field.
Steps to establish a company in Dubai
Establishing a company in Dubai is a process that requires following specific steps to ensure compliance with local laws and achieve success in the evolving business environment. Whether you are a local or foreign investor, following the right procedures will ensure you get off to a strong and sustainable start.comprehensivelydiscuss the basic steps for establishing a company in Dubai .
1. Determine the type of business activity
The first step in establishing a company is to determine the type of business activity you want to practice. Dubai offers a wide range of business activities from which to choose. The business activity must be clear and precisely defined to ensure that the necessary licenses are obtained.
2. Choosing the company’s legal structure
You must choose the appropriate legal structure for your company, such as:
- Limited Liability Company (LLC)
- Branch of a foreign company
- Free zone company
- Individual Foundation
- The choice of legal structure depends on the type of business activity, size of investment and shareholders.
3. Choosing a company name:
An appropriate name for the company must be chosen that complies with the standards of the Dubai Business Regulatory Authority (DED). The name must be unique and not used by other companies, and must not contain prohibited or offensive words.
4. Applying for initial approvals
After choosing the company name and determining the type of activity, an application must be submitted to obtain initial approvals from the Business Regulatory Authority in Dubai. This step includes submitting basic documents such as a copy of the passport and details of partners.
5. Preparation of the Memorandum of Association and Articles of Association
of the company. The Memorandum of Association and Articles of Association of the company must be prepared and signed by all partners before a notary public. The articles of incorporation detail the rights and duties of the partners and the percentage of ownership.
6. Choosing a business location
: Companies in Dubai must select a business location and provide a lease contract certified by the Dubai Land Department. The site must be appropriate for the type of licensed business activity.
7. Obtaining additional approvals
Some commercial activities may require additional approvals from other government agencies such as the Ministry of Health, or the Telecommunications Regulatory Authority. All necessary approvals must be obtained before applying for the final license.
Types of companies in Dubai
Dubai is characterized by the diversity of types of companies that can be established, allowing local and foreign investors to choose the legal structure that best suits their business needs. The following table shows the main types of companies in Dubai with the advantages of each type:
| Type of Company | the description |
|---|---|
| Limited Liability Company (LLC) | A company consisting of two to 50 partners, and the liability of each partner is limited to the percentage of his contribution to the capital. |
| Free Zone Company | A company operating within a free zone, enjoying tax benefits, exemptions, and full foreign ownership. |
| Branch of a Foreign Company | A branch of a foreign company operating with the same name and licenses in Dubai. |
| General Partnership | A company consisting of two or more partners who bear full responsibility for the company’s debts. |
| Simple recommendation (Limited Partnership) | A company consisting of general partners who bear full responsibility and limited partners whose liability is limited to the extent of their contributions to the capital. |
| Public Joint Stock Company | A company whose capital is divided into shares that are tradable on a stock exchange and must have a certain number of shareholders. |
| Private Joint Stock Company | A joint-stock company whose capital is divided into shares that are not publicly traded, and requires a smaller number of shareholders. |
| Civil Company | A company specializing in professional activities such as medicine, engineering, and consulting, and the partners must be from the same profession. |
| Joint Venture | An agreement between two or more companies to implement a specific project, without forming a new legal entity. |
| Sole Establishment | A business entity owned and managed by one person, who bears full responsibility for all of the company’s liabilities. |
Documents required to establish a company in Dubai
Establishing a company in Dubai requires specific procedures and submitting a set of necessary papers and documents to the relevant government bodies. Here is a list of basic papers you need:
- Application form for establishing a company:
It contains basic information about the company, such as the company name, type of activity, partner structure, and workplace.
- Memorandum of Association / Articles of Association form:
It determines the rights and duties of partners and the conditions for managing the company.
- Certificate of Incorporation:
A document proving the legality of the company and its establishment as a legal entity.
- Passport photos and personal photos of partners and key officials:
The personal photo must be recent and have a white background.
- No Objection Certificate from the competent authorities:
It may be required for some special business activities such as medicine and pharmacy.
- Office Lease Agreement Documents:
Proves the location of the company’s office and must be approved by the Dubai Land Department.
- Registration Fees and Financial Transaction Fees:
It varies depending on the type of company and business activity, and must be paid when submitting the registration application.
- Financial Reports or Feasibility Study:
Some businesses may be required to provide evidence of the company’s ability to grow and be sustainable.
- Special Permits:
It may be required for some commercial activities such as private professional or industrial activities.
- Employment Contracts and Other Agreements:
If the company intends to hire employees or contract with customers or suppliers.
The role of our company in establishing a company in Dubai for Saudis
Establishing a company in Dubai for Saudis in cooperation with Itqan Company represents an important strategic step towards strengthening economic and trade ties between the two countries. Through this partnership, we aim to provide distinguished and innovative services in the thriving business environment in Dubai, benefiting from the expertise and resources provided by Itqan Company. We strive passionately to build bridges of success and excellence, and to promote innovation and sustainability in everything we offer. Our goal is to be a catalyst in enhancing economic cooperation between Saudi Arabia and the UAE, and to contribute to raising the level of services and investment opportunities in the region. With pride and confidence, we build our future together in the international business world.
Frequently asked questions about establishing a company in Dubai for Saudis
What are the basic steps to establish a company in Dubai as a Saudi?
- As Saudis, you must form a partnership with an Emirati citizen (citizen partner) under UAE law.
- Determine the company’s activity and obtain the necessary licenses from local authorities.
- Register the company and obtain a registration certificate from the Dubai Economic Development Department (DED).
What types of companies can be established in Dubai?
- Limited Liability Company (LLC): This is the most common option and requires a partnership with an Emirati citizen.
- Sole Proprietorship: Managed entirely by one person and easily registered.
What are the documents required to establish a company in Dubai?
- Company registration form.
- A copy of the passport for partners and managers.
- A copy of the company’s social contract.
- A financial report proving the company’s planned capital.
- Declaration from local authorities (DED) of business plan and job title.
What taxes apply to companies in Dubai?
In Dubai, there are no personal or corporate income taxes, except for some specific sectors. Value Added Tax (VAT) of 5% applies to services and goods.
Can I benefit from full ownership of the company as a Saudi in Dubai?
As a Saudi, you cannot fully own the company in Dubai. There must be an Emirati national partner who owns at least 51% of the company’s share.
