UAE ideal partner for export

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With a GDP growth of around 4% per year and a balance of trade that sees a steady increase in imports – with only 7% in 2012 – the United Arab Emirates is a growing economy. Currently Italy carves out a slice of 3.3% of the imports of the country: the third European partner for exports in the UAE.

The Federal Absolute Monarchy is the first export market for Italian companies in the Arab world: a turnover of 5.5 billion in which the Italian export prevails, with a trade balance of 5 billion for the Mediterranean country.

OPPORTUNITIES

The UAE are investing more than $ 50 billion in railways, with an ambitious project of a network connecting all the Arab area. To cope with the constant increase (5% YOY) in demand for electricity, the country is giving the go ahead to the realization of solar parks. A system of incentives is planned for 2014 that will be able to attract the attention of investors.

The construction sector is growing by 4.5% per year. This rate is expected to rise thanks to a five-year plan of investment for almost three billion dollars in total. Expo 2020 will boost it with 6.9 billion dollars of investments in infrastructure for the event and 7 billion to expand hotel accommodation.

INCENTIVES

There are more than 30 free zones in the UAE offering incentives to companies that invest in these areas. Of greatest interest is the fact that foreign investors can own 100% of a local company (a limit of 49% participation is applied throughout the rest of the country).

The tax system of the United Arab Emirates contemplates no tax on the income of individuals, although companies that employ UAE nationals are required to pay a portion of their wages into dedicated retirement funds.

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Source: Servizio Centrale Studi Economici Federazione ANIE, Devis Friso.

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