The UAE and Latin America are continents apart, but distance has proven to be no hurdle when it comes to forging close links between the golden country and its far-flung South American friends. Both nations have continually taken restorative steps to deepen investment, trade, cultural, and diplomatic cooperation. With the Dubai Chamber of Commerce and Industries opening its third office in Sao Paul, regular hosting of prestigious business summits and, most importantly, the burgeoning industry-specific Free Zones (SEZs) in Dubai; have made the UAE one of the most attractive regions for today's nomadic entrepreneurs to establish their business.
Countries such as Brazil, Argentina and Paraguay are key for agricultural exports, while the UAE offers substantial expertise in logistics, infrastructure, tourism, and hospitality to Latin American countries.
In the post-COVID-19 world, global entrepreneurs will prefer to do business in districts that are hyper-connected, support intelligent infrastructure, and have receptive markets. The United Arab Emirates being a pioneer in smart city adoption, is getting ready to take on the world once the shambles of the pandemic subside. The country has rightly invested in advanced digital technologies, including 5G mobile internet networks, to facilitate the proliferation of smart services, machine-to-machine communication, and linked transport, supporting the new-age work culture that we all have gotten used to.
Setting up a business in Dubai is incredibly easy and rewarding. The country gives a three-year residency visa in the UAE. Besides, company setup costs in the Free Zone and the Mainland are quite affordable. Entrepreneurs also benefit from conveniences, such as 0% income tax rates, easy opening of bank accounts, more accessible construction permits, improved minority investor protection, and efficient export & import procedures.
Since the UAE Dirham is pegged with the American dollar, the fiscal environment is also very stable. Apart from that, the UAE has a firm double tax treaty with many countries, including all major Latin American countries. Meaning, if the company is based in the UAE and has made profits in another country, the taxes withheld by the country can be lowered due to the double tax avoidance treaty.
For so long the Free Zone model entailing 100% ownership and the single window services appealed to Latin American investors and business owners, but now those same advantages have spilt to the Mainland Dubai too. And that I believe that is proving to be a game-changer. In several professional services, expats can now own 100% of the company as opposed to 49% previously. Facilities such as the DED café provide a person with a mainland license within a few hours while sipping coffee; the DED instant license has also become very popular, confers authorisation within minutes.
In the wake of Latin America's economic rebound and Dubai's role in supporting the region's ambitions, many new business opportunities are likely to emerge between the two nations, whetting the appetite of foreign investors and companies who are watching the respective economies accelerate at a great pace.
On 9th June, we will be holding a special round table conference with Rafael Solimeo, Director, Arab-Brazilian Chamber of Commerce, Carlos Salas, Trade Commissioner of Chile in the UAE, and Manuel A.Gonzalez, Former Minister, FFAA Costa Rica, to discuss more on the various areas of trade cooperation between UAE and Latin America, potential investment opportunities for businesses, and exploring the industries that are the driving force between Latin American countries and the UAE. To join the virtual session, click here to register.
About The Author
Lorenzo Jooris is the CEO of Creative Zone, a Dubai based business advisory firm. Mr Jooris holds experience in the Middle Eastern and South Asian business markets and retains an expert opinion on the regions' SMEs and startup culture. He was the founder of One World Communications, a full-fledged multi-media powerhouse advising governments worldwide in branding and communication strategies. He also started LEADERS Middle East Magazine in the UAE and formulated 'Leaders without Borders', an initiative that promotes the development of young social entrepreneurs. He is the author of "Recipes for a Better World" and an advisor to the James Michel Foundation.
About Creative Zone
Established in 2010, Creative Zone is one of the few new-age companies that specialises in overseas company incorporation. Having helped over 44,000 clients set up their businesses in the UAE, Creative Zone provides a unique set of tailored services that meet all the requirements of entrepreneurs and business owners when it comes to establishing and growing business in the UAE. Right from making the whole process remote and electronically enabled, opening bank accounts that can be accessed from anywhere in the world without any transfer restrictions to making sure all the papers and formalities are complete & protected.