The UAE has become a business hub for people from almost all countries. Dubai is very welcoming to all nationalities including Chinese. A business can be one of the best investments in Dubai for Chinese entrepreneurs.
Dubai is like a fertile ground where foreign investors sow their seeds of business. In the first half of 2019, around 696 Chinese entrepreneurs received around 362 trade licenses from the Department of Economic Development. Furthermore, Dubai has an important role to play in the Belt and Road Initiative of China.
Why do Chinese Business People Prefer Investment in Dubai?
Recently, Chinese investors have shown interest in investing in a business in the UAE. Therefore, some of the major reasons for investment are
1. UAE helps in Silk Road Project
In 2018, China and UAE signed a Memorandum of Understanding (MoU). The MoU aimed at cooperating for the Silk Road Initiative and 21st Century Maritime Silk Road. Thus, it focuses on boosting trade and investment.
China has a very strong hold on Al-Maktoum airport. This helped them transport the goods easily across different regions in the digital sphere. Furthermore, according to reports, 30% of Chinese export to Arab pass from the UAE. Furthermore, 22% of Arab-Chinese trade passes through the UAE.
UAE is one of the best locations for setting up a business. Most Chinese investors consider business investment in Dubai for higher profits as it is the capital too.
2. Real Estate in the UAE
The Dubai real estate sector is constantly growing. Foreigners are highly interested in investing in property in Dubai. The real estate market in China is very expensive. Furthermore, real estate in the UAE is luxurious yet affordable.
The real estate governing policies in UAE is very flexible. As the owner, you get complete ownership and even have to pay less rent. Therefore, the Chinese investors consider investing in the Dubai real estate market because of the benefits.
The Dubai Land Department is also introducing new measures to ensure Chinese nationals can easily invest in real estate. Thus, the Chinese can open their respective representative office in China. This tactic is bringing in more investment in Dubai by the Chinese nationals.
3. Collaboration to promote Belt and Road Initiative
China has announced the One Belt One Road Initiative in 2013. Thus, under this project, more than 138 countries across three different continents will be linked. The implementation of the project can also bring about a profit of up to $29 trillion. Thus, the UAE’s collaboration with China to promote the Belt and Road Initiative can bring significant benefits.
At the Belt and Road Conference (April 2019) Chinese companies and the UAE signed two major deals. Therefore, the Belt and Road Initiative is to boost infrastructural development and economic integration across Europe, Africa, and Asia. Furthermore, the UAE is a major part of the initiative.
UAE has an inward investment of around 3.4 billion US dollars for the Belt and Road forum. Various commercial agreements and joint ventures will help UAE and Chinese transport and infrastructural growth. Therefore all the measures will be taken as per the Belt and Road Initiative.
4. Diplomatic Trade Relationship between the UAE and China
China is one of the leading trade partners of the UAE for non-oil commodities. UAE offers a gateway to China to reach the key markets. From 2013 to 2017, the UAE and China’s exports have grown rapidly by 22%. Furthermore, the non-oil exports of the UAE also grew by 33% at the same time. Some of the key non-oil products that were exported included chemicals, aluminum, mineral ores, iron, and more.
As per reports, 60% of the trade between China and the UAE is being re-exported to Africa and Europe. It is expected that by 2030, the trade of goods between the two countries will grow around 9-10% each year. Therefore diplomatic trade relations between China and the UAE are pretty strong. They are likely to grow more in the coming times.
Business setup in Dubai as a Chinese entrepreneurs
Chinese entrepreneurs looking forward to establishing their business in the UAE can get a wide range of advantages. Thus, Dubai has various opportunities for Chinese investors.
- As a Chinese investor, you can focus on the Chinese expat market. You can help them get the products and services they got back in China. This is a highly innovative market that will bring in a wide range of opportunities for the population in the UAE.
- You can establish your business in the mainland area. The UAE government has certain rules and regulations. Thus, all the investors must follow them closely.
- UAE is a great regional trading hub. You can import the products and easily distribute them in GCC or other regions.
Dragon Mart can be an effective place to start your business in the UAE. However, there are some modifications in the UAE law for Chinese investors. Following these regulations will ensure that the Chinese business people can legally own 100% of the business. Furthermore, they will also get the flexibility of establishing their business anywhere in the UAE.
JAFZA and DMCC regions have websites in Mandarin. Therefore, Chinese business people can refer to these websites for better information regarding the services. Various free zones have their Chinese representatives. These Chinese representatives can be the point of contact for interested Chinese investors.
Visa Benefits for the Chinese investors
Chinese entrepreneurs can get various visa benefits. Chinese business people can get the advance a 30-day visit visa on arrival which will be free of charge. Furthermore, it will also be renewable for a small period. Over 1.1 million Chinese tourists had the benefit of mutual visa exemption. Therefore, the UAE is likely to observe the coming in of more Chinese businessmen in the coming times.
If you are a Chinese national and want to set up your business in the UAE, we can help you with the process of investment in Dubai. The UAE is one of the best places to start your business because of all the benefits such as the tax-free environment and sunny climate. Chinese investors can benefit from the diplomatic relationship between UAE and China. Thus, if you want to set up your business here, we can assist you. Contact us today!