Looking ahead to 2025, the UAE is set to continue its upward trajectory. At this point, it’s not too bold to say that if you’re looking to relocate or start a company somewhere in the world next year, there really is no better place to do business. Considering the key indicators for a country’s current and future health, the UAE ticks every box several times over. As it stands, I’m not sure why anyone would look anywhere else.
So, in this article, I’ll back up these claims and demonstrate that when it comes to the economy, strategic location, and ease of doing business, the UAE is ahead of the pack. I’ll also show how, in my view, every person thinking about where to start their business needs to ask themselves a crucial question: Does the country I’m selecting have a genuine plan for the future, or is it just muddling along?
Projected growth and economic development
There are a lot of economic uncertainties around the world, but over the past few years the UAE has shown remarkable economic resilience and growth. The Arab Monetary Fund (AMF) projected a growth forecast of 3.9% for 2024, with a stunning 6.2% expansion projected for 2025. This is the first indicator to look at, because if an economy is continually growing, you’re setting up your business on solid ground.
A genuine plan for the future
I mentioned planning earlier, and I want to return to it here in more detail. If you’re searching for information on a country’s prospects, it’s sometimes worth looking at how other countries view it. The US State Department notes that the UAE government has five economic priorities: enhancing the education system, boosting non-oil GDP, providing more housing, increasing private sector job opportunities for Emiratis, and improving sustainability.
With that last point in mind, the UAE has committed to achieving net-zero greenhouse gas emissions by 2050, announcing a USD 163bn investment in renewable energy and a USD 30bn climate finance fund. The UAE also hosted COP28, further underscoring its dedication to sustainability and environmental stewardship.
Moves such as these – including sustainability and improving the education system – are win-win initiatives that benefit the people, job creation and the wider economy and further set up the UAE in the strongest possible position for the future. These initiatives are central to the ‘We the UAE 2031’ vision, which aims to boost prosperity by empowering citizens to make significant contributions to the country and demonstrates the UAE’s view that human capital is the key driver of any development plan.
It’s fair to say that the country has plans across every imaginable area – from the Abu Dhabi Economic Vision 2030, to the Dubai 2040 Urban Master Plan & Sustainable Development, to the UAE Centennial Plan 2071. It’s a country with its eyes firmly set on the future, planning and executing strategically.
Who exactly is coming to the UAE?
The UAE population is around 9.5 million and is projected to reach over 12 million by 2030. This expansion is driven by expats as well as natural population growth. For the business owner, this means increased demand for goods and services as well as an even deeper pool of skilled professionals who can support many different and highly specialised workforces across diverse industries. Over 30,000 new businesses were registered with the Dubai Chamber of Commerce during the first half of 2023, an increase from 21,000 the previous year.
Alongside considerable numbers of both low-skilled and high-skilled migrants, the UAE also continues to attract high-net-worth individuals, with approximately 4,500 relocating to the country in 2023. And we also shouldn’t forget tourists – Dubai alone aims to attract 25 million tourists by 2025, further increasing demand for goods and services.
A unique business environment
The UAE’s success as a business hub can be attributed to several key factors:
- Strategic location: Situated at the crossroads of Europe, Asia and Africa, the UAE is a strategic gateway for trade and investment. Its well-developed infrastructure, including major ports and airports, facilitates seamless global connectivity.
- Economic stability: With its strong fiscal policies and significant sovereign wealth funds, the UAE offers a stable economic climate. This stability is particularly attractive in a world marked by geopolitical uncertainties and economic volatility.
- Flexibility: Investors in the UAE can engage in over 2,000 different economic activities, including trade, industry, agriculture, services, education, health and construction. Foreign investors can own various types of commercial entities, such as public joint-stock companies, private joint-stock companies, limited liability companies, and so on.
- Business-friendly policies: Over the years, the UAE has implemented a range of reforms to attract foreign investment, including:
- Establishment of over 40 free zones enabling foreign investors to retain complete ownership of their businesses.
- Zero income tax on individuals.
- Long-term residency visas ranging from five to ten years for investors, entrepreneurs, and talented individuals, allowing them and their families to live, work and establish businesses in the country.
- A ‘Golden Visa’ program that offers 10-year residency to investors and skilled professionals.
- No mandated minimum capital, allowing investors to set their capital requirements in the articles of incorporation and association for limited liability companies.
- Tariffs ranging from zero to 5%, helping the UAE establish itself as a major global trade centre, ranking third worldwide for re-exports.
- A focus on innovation and technology: The UAE is positioning itself as a leader in innovation, with significant investments in smart cities, artificial intelligence and blockchain technology. The country’s dedication to technological advancement provides a fertile ground for tech startups and established companies alike. The UAE also uses technology to streamline citizens’ interactions with government entities, leveraging the world-leading smartphone penetration and making day-to-day life more straightforward than ever before.
Giving you the best chance in the world
While many countries grapple with political instability, regulatory challenges, or economic volatility, the UAE’s strategic foresight and stable governance offer a secure and promising environment. The UAE represents a rare combination of stability, opportunity, and growth potential for foreign investors and entrepreneurs.
As we approach 2025, the UAE is one of the most attractive destinations for setting up a business. The country’s ongoing commitment to economic diversification and modernisation provides a strong foundation for future success. For those seeking to capitalise on a thriving market with exceptional growth prospects, the UAE offers perhaps the best chance in the world right now.
Conclusion
It may seem a relatively small thing, but in 2022, the UAE adjusted its working week to align more closely with global markets. This is a country that never stands still and never takes anything for granted. The reason it’s such a hub for innovation for startups, enterprises and multinational corporations is that it constantly looks for ways to refine how things are done.
As we have seen, the UAE is advancing its economic diversification and regulatory reforms to foster private sector growth, reduce reliance on oil revenues and cultivate a knowledge-based economy supported by cutting-edge technology and clean energy initiatives. Its economic growth and forward-thinking policies – as well as its unique strategic advantages – ensure that it will continue attracting foreign companies and individuals into 2025 and beyond.
