FDI REFORM: NEW BUSINESS OPPORTUNITIES IN THE EAU
06Ott’21
New opportunities for Italian SMEs in the UAE, always considered as preferred destination for Made in Italy.
The UAE are a steadily growing market: production, oil trade, technological innovation and sustainability. Through an absolutely positive business climate, the UAE play a key role for Italian enterprises not only in food and luxury sector, but also technology-wise.
Actually, during the lockdown period, the UAE went through a difficult time due to the penury of food products – imported for more than 90%. This is the reason why the country – through new foreign partnerships for cutting edge projects in sustainable mobility, aerospace, and pharmaceutical and medical sector – is trying to identify new solutions to face not only food problems, but also the ones linked to renewable energies.
In order to attract enterprises for the production of high-tech innovation, the UAE put at stake a new reform for Foreign Direct Investments which aims to turn them into a worldwide investment center and a laboratory for new technologies. Thank to this reform, in PLCs, the duty of the company structure does not have to be by an Emirati majority any longer, and the duty of the presence of both an Emirati president and an Emirati board of directors has been repealed as well.
Enterprises with a strategic impact on UAE economy – such as gas and oil industries – are excluded from this reform.
The taxation surely is another highly attractive element for foreign enterprises. Corporate income tax does not exist, and VAT- only introduced from 2018 – continues to stay very low.
Despite pandemic crisis, the import-export trade between Italy and the UAE still is so high, actually, as regards 2019, exports registered an increase of +37%. Today, high-tech sectors will partner with those of luxury fashion, and food and beverage.
To conclude, Dubai Expo 2021, – thank to the presence of the youth – only will account for a momentum for Made in Italy sectors.
Revision and translation by Gabriele Di Falco.