What You Need to Know Before You Start Trading Business in UAE 2022_

1. UAE has become the center of investment for foreign investors and young entrepreneurs. UAE's strategic location complimented with straightforward-investor friendly trading policies has made it a hot hub for trading. Just 8 hours away from two-thirds the population of the globe, it has established a solid connection to Europe, Asia, Africa. UAE has seen a dramatic leap forward since 1971 when oil accounted for 90 percent of the country's GDP. By 2021 Oil and Gas contributed to 30 percent of the GDP. Wholesale and retail and financial services accounted for 22.7 percent and 11.9 respectively in the first quarter , according to information provided by Statistica . Other major contributors include transport and storage, manufacturing and real property. There are two types of trade: external and internal that is, internal trade comprises wholesale and retail while external trade encompasses exports and imports. There are four types of trading licenses that you can get: general trading license industrial license, commercial license, and professional license. If you plan to sell any commercial goods or if you want to setup a brokerage/real-estate services then you should consider a commercial license. If you're planning to set the foundation of a manufacturing facility, you will need an industrial license. If you're looking to establish the service-oriented business, you'll select a professional license. If you are looking to set up your own business in a specific field, you must select one of these licenses. The general trading license of the UAE permits the trading of several goods with a single license. Additionally the general trading license is more costly than other licenses. In the wake of the introduction of New CCL law, that permits UAE non-nationals to hold 100 percent of the company, a change from the old law, which required 51% ownership for UAE nationals, there's an the best opportunity for foreign investors to explore market opportunities in the UAE market. UAEs mostly export mostly to Saudi Arabia (13%), India (14%) Iran (11 percent) and Switzerland (5.9 percent) as per the UN COMTRADE database. Japan and the UAE have been long-time allies and had bilateral trade of $22.4 billion bilateral trade by 2020. Meanwhile, exports of Japan towards the UAE were estimated at $5.7 billion, and exports of Japan and the UAE to Japan totaled $16.7 billion, as per Gulf Today. The credit available to consumers in the UAE was up by 339770 AED Million in the second quarter of 2021, up from 333882 AED Million in the initial quarter of 2021. This signifies an increase in consumer's spending and indicates favorable weather for traders. The F&B sector promises huge opportunities with exports to the F&B sectors in Dubai experiencing 27.8 percent growth in 2020 as compared to the year prior despite the COVID-crisis. Additionally, Dubai achieved a whooping 90.7 percent growth in F&B sector's exports as well as 73.1 percent in re-exports during the early 2021 when contrasted to the same period in 2020. This sector was responsible for 6.1 percent increase in non-oil trade , as per the latest reports of Dubai Industries & Exports (Dubai IE)

2. UAEs F&B trade surpassed $20 billion during the first nine month of the year 2021. In addition, from 2011 to 2020 UAEs F&B trade in exports and imports, and reexports rose at 0.6 percent, 7.5% and 6 percent respectively as per the reports of Government of Dubai. Another area that is expanding at an unimaginable rate is the fashion industry and is projected to expand at a rate of 9.92 percent. The fashion industry is mostly controlled by three segments: clothing, accessories, and footwear; the latter making up the largest portion that of the market. In 2021, online sales were 41.5 percent, and offline sales were 58.5 percent There was a dramatic rise in online sales due to COVID . In 2022 it is anticipated the online market will be at 39.4 percent, while offline sales will increase and reach 60.6 percent. The 25-34 age group contributes an average of 45.4 percentage and 35-44 years olds contribute 28.9 percent and remain as the most significant people who contribute for the world of clothing. Internet penetration rates of UAE as well as Saudi Arabia stand at 99 and 89 percent, respectively in comparison to just 57 percent for China. Additionally the recent loosening of dress code rules within Saudi Arabia is expected to change the way women shop for clothes and fashion in South Arabia. The penetration of e-commerce is expected to rise to 9% from the current 2% over the next five years. In line with Dubai's goal to reach Dh 2 trillion non-oil trade by 2025 Dubai International Trade Roadmap Dubai International Trade Roadmap plans to expand its existing network that includes around 400 towns across the globe, adding 200 more cities. The new GCC law permits foreigners to hold 100% of the offshore business, is further and is accompanied by Dubai International Chamber adopting the new strategy, which aims to bring in 50 multinationals within three years and to promote 100 companies based in Dubai to prioritised overseas markets in just two years. UAEs has established itself in the ranks of leading world players. With a solid business plan and an understanding of the continually evolving UAE trade laws and policies, the UAE's trade market is bound to offer endless opportunities and expansion. For any queries with regards to business licensing and incorporation, legal & compliance you can visit https://zylostar.com/ and book a free call with our specialists.