Doing business in the UAE - potential and attractive business opportunities

Updated time: 20 Nov, 2021, 14:19 (UTC+08:00)

The United Arab Emirates (or UAE), a wealthy country located in the Middle East, known as a major trading partner of Vietnam, with export turnover in the first 10 months of 2021 reaching nearly $4 billion.

Skyscrapers are lavish symbols of the UAE

Impressive trading figures

According to statistics from the General Department of Vietnam Customs, in the first 10 months of 2021, the total two-way trade between Vietnam and the UAE was over US$4.3 billion, up 20.7% over the same period in 2020. In which, export turnover from Vietnam to the UAE was over US$3.9 billion - increasing 20.3%; import turnover from UAE to Vietnam was US$430 million - increasing 24.8%. With 90% of the two-way trade turnover between Vietnam and the UAE was exports to the UAE, Vietnam is having surplus trade to this market.

In terms of export structure, phones and accessories are the items with the highest export turnover from Vietnam to the UAE with nearly US$2.7 billion in the first 10 months of 2021 (accounting for 68.5% of export turnover; up 28.3% over the same period last year). Followed by computers, electronic products and components (US$321.5 million - accounting for 8.2%); machinery, equipment, tools and spare parts (US$226.2 million - accounting for 5.8%). In general, exports from Vietnam to the UAE still grew strongly despite the negative impacts of Covid-19 in the 3rd quarter of 2021.

In terms of import structure, plastic material is the item with the largest import turnover from the UAE with US$171.8 million, up 69.6% over the same period last year. Some other items with high import turnover such as liquefied petroleum gas (US$87.5 million), common metals (US$28.6 million), petroleum products (US$25.4 million), animal feed and raw materials (US$15.1 million), etc.

The UAE is Vietnam's major export market

"With impressive growth figures in Vietnam's exports to the UAE despite the impact of Covid-19 in 2021, the UAE has been proven as a potential market for Vietnamese businesses. In particular, consumption demand for goods in the UAE will grow strongly by the end of the year. This will create opportunities for new Vietnamese brands to penetrate and develop business in the UAE, bringing our products and brands to the world”, said Mr. Bui Duc Tue - Director of One IBC^®, a corporate service provider.

The trusted partner on your way of doing business in the UAE

Free trade zones are the most well-known thing when it comes to the UAE's economy. The UAE has more than 30 free zones spread across 7 emirates, prominently DMCC and RAK free zones.

Nowadays, setting up offshore companies in the UAE is becoming more and more popular, especially those free zones. The Government has given many incentives to foreign investors in order to boost its economy and create a favorable business environment for international corporations. Some advantages for Vietnamese investors when setting up offshore companies in the UAE’s free zones are as follows:

The UAE has a vibrant and diverse economic community that offers many business opportunities for Vietnamese investors.
The company can be 100% foreign owned.
The process of setting up a company in the UAE’s free zones is fairly easy.
World-class infrastructure. Free zones are often located near airports and seaports, which is convenient for Vietnamese businesses to increase their exports to the UAE.
Strong banking system, stable politics.
Preferential tax rates for businesses.
The UAE is the gateway connecting to markets in the Middle East and Africa.

Establishing a company in the UAE is quite popular with Vietnamese investors

According to the Vietnam Trade Office in the UAE, the two-way trade between Vietnam - UAE in 2021 is expected to reach about US$5 billion. This is a positive figure for import-export businesses in Vietnam that have been and intend to do trading with this market.

If you are looking for an opportunity to expand your business in the UAE and you need to find an expert in foreign investment, or offshore services, One IBC^® will be a trusted partner for you. With our solid experience, we can assist you with legal issues, and procedures of setting up offshore companies in the UAE at a reasonable cost. Please contact our Hotline 18006758 or email [email protected] for more details.