Dubai has once again demonstrated to the world that it is a worldwide commercial powerhouse, a reputation that has not been shaken even in the face of the COVID-19 outbreak. Dubai's proactive measures and reforms are responsible for the city's survivability throughout the epidemic. A slew of ground-breaking initiatives have already been enacted, including citizenship for foreign investors, economic stimulus packages worth up to AED 7.1 billion, three-year visas for just AED 1 million in property, vaccine deployments, the introduction of the National Industrial Strategy, the continuation of Expo 2020, 100 % ownership of mainland businesses for foreign nationals, and so on.

Last but not least, whereas other economies have been prolonging their lockdowns for months, Dubai has resumed operations after just three weeks of lockdown, demonstrating that the future looks bright for investors, those who are aiming to open up a firm in Dubai Mainland.

In this article, we will explore how Dubai outperformed the advanced nations in becoming a worldwide economic center when other powerful countries failed to deliver.

A Significant Advance in Foreign Ownership on the Mainland

Dubai is regarded as the entrance point to the wealthy Middle Eastern market. Foreign investors believe establishing a mainland business in Dubai to be the greatest way to explore the profit potential in the larger UAE market and the Middle East region. However, establishing a company on the UAE mainland used to come with a catch: foreign nationals can only own 49 % of the company. The remaining shares are held by a UAE national who serves as the Local Sponsor.

This obligatory requirement has become a deterrent to the registration of LLC companies in Dubai. However, the UAE's progressive rulers have now given the green light to 100 % foreign ownership by eliminating the requirement to designate a UAE national sponsor. The new corporate ownership legislation will go into force on June 1st. Business setup experts in Dubai anticipate a resurgence of foreign investment because of the historic change.

The Rise of Sunrise Sectors

Nowadays, a more prudent method would have been to select pandemic-proof company creation concepts in Dubai. Areas such as e-commerce, digital marketing, health technology, education technology, Fintech, food delivery, e-sports/gaming, and others have effectively overcome problems like lockdowns and social distance. Startups and small firms who participate in such sunrise sector initiatives may expect long-term development in Dubai's investor-friendly environment.

The government also motivates investors to establish businesses in pandemic-resilient businesses in Dubai. The establishment of special e-Commerce free zones like Dubai CommerCity and EZ Dubai demonstrates the government's desire to encourage investment in pandemic-resistant businesses. The Dubai Airport Free Zone (DAFZA) has launched the Scality project to establish a favorable atmosphere for digital entrepreneurs working in growing industries like Fintech, Education-tech, Agritech, Healthcare Tech.

Expat Citizenship is a Game-Changer

The UAE was regarded as a second home by the majority of immigrants, although the length of their commitment and devotion was determined by the period of their resident or investor visas. After the pandemic, the UAE government astonished everyone by granting highly sought-after citizenship to foreigners. Individuals who meet certain criteria, such as a particular amount of money or excellent performance in specific fields, can now get UAE citizenship.

Investors, physicians and experts, innovators, scientists, notable talents, intellectuals, artists, and their dependents will be awarded UAE citizenship under the new Citizenship legislation. The first group of rich foreigners to be granted citizenship comprises the CEOs of two UAE-based airlines, an international soccer player, and also the founders of two prominent UAE enterprises.

National Industrial Strategy Revised

The UAE reached a new milestone in 2021 when it announced the new industrial plan known as Operation 300 billion. And over the following 10 years, the strategy intends to boost the manufacturing industry's contribution to the UAE economy from AED 133 billion to AED 300 billion. In the following years, the national policy will witness the development of 13,500 industrial enterprises, and an increase in R&D expenditures on the industrial sector from AED 21 billion to AED 57 billion.

Additional Investments through EXPO 2020

At a moment when a terrible virus is spreading havoc in many nations, only Dubai could put off a huge international event like EXPO 2020. The EXPO 2020, which is set to begin on October 1, 2021, will coincide with the UAE's 50th anniversary of independence. The event was initially set for 2020 but was compelled to be rescheduled to this year owing to a pandemic concern.

Because the virus is still rampant, some other countries would have dropped out of organizing the event at a future date. The event's green flag demonstrates Dubai's confidence and is a tribute to the city's safety programs. The worldwide event will inject fresh confidence and vitality in all commercial sectors, particularly tourism, hospitality, and events.

The Bottom Line

After reviewing the latest developments, we can conclude that establishing a venture in Dubai makes perfect sense for international investors. The immunizations give a safe place, citizenship ensures long-term commitment, and 100 % ownership exposes additional options. If all of the reform measures seem appealing, speak with the top business setup experts in Dubai, like Jitendra Business Consultants (JBC), to reap the advantages of the new developments. JBC simplifies the complexities of business creation by providing specialized services like creating a bank account, processing visas, acquiring a trading license, and so on. Entrepreneurs may reach their company goals with ease by using JBC's company establishment services in Dubai.