Top 4 Reasons Why Chinese Entrepreneurs Prefer Setting up a Business in the UAE?

Chinese Entrepreneurs Prefer Setting up a Business in the UAE
Chinese Entrepreneurs Prefer Setting up a Business in the UAE

The UAE is increasingly becoming the business hub for most countries globally. In Fact, Dubai consists of different nationalities, including the Chinese. Foreigners are looking for a fertile business ground to establish themselves in their business sectors. And the UAE is deemed to be the best place to start your business. Chinese Entrepreneurs Prefer Setting up a Business in the UAE That’s said, the Chinese have also moved to Dubai for business investments. Therefore, why do Chinese nationals or investors prefer setting up a business in the UAE?

Why Chinese investors Prefer Setting up a Business in Dubai
Why Chinese investors Prefer Setting up a                             Business in Dubai

Generally, the Chinese entrepreneurs are opting Dubai for business setup because of the following reasons;

  • Robust trade and diplomatic ties between the UAE and China
  • Chinese nationals investing in real estate in the UAE
  • The UAE is considered to play a huge part in China’s Silk Road project
  • China and the UAE are together promoting the Belt and Road Initiatives

Similarly, the UAE consists of over 10% Chinese nationals. This is a huge number of other nationals detected in another country. That means; Dubai is laced with amazing facilities and features for setting up a business. Therefore, it is needless to say Dubai is the center point of investment and a good business hub business set up for the Chinese entrepreneurs.

Likewise, the Chinese are business-oriented people. And, in any case, they are spotted in any country; they are there for business purposes. On top of that, the (DED) Department of Economic Development in the UAE reported that in 2019 alone, they issued more than 362 business licenses to more than 696 Chinese entrepreneurs. Does Drop shipping Business require a Business License in the AUE the licenses were solely distributed to the Chinese entrepreneurs looking forward to starting a business in the UAE.

From the Department of Economic Development’s report, it is clear the Chinese are thirsty to start their business in Dubai. So, what drives these Chinese nationals to start their business in the UAE? 

Let’s find out:

Top 4 Reasons Why Chinese investors Prefer Setting up a Business in Dubai

Yes, the UAE is popularly known for its advanced infrastructure, sunny climate, and stable economy, motivating many foreigners to start a business in Dubai. 

Additionally, the UAE has different free zones that allow foreigners to set up their businesses without issues. It is easy to get a business license to carry out business activities in the UAE. In Fact, you can either visit the Department of Economic Development in the UAE, which deals with trade licenses in Dubai or apply for a trade license online.

Thus, apart from the good climate and a stable economy in the UAE, here are the top reasons why the Chinese entrepreneurs prefer setting up a business in Dubai;

Robust trade and diplomatic ties between the UAE and China

Currently, the UAE offers a global market that is considered a home for business activities. Moreover, it is strategically situated, thus, becoming a gateway to Africa, Asia, the Middle East and Europe. And so, this motivates Chinese entrepreneurs to start their businesses in Dubai.

Similarly, the UAE and China share robust trade and diplomatic ties, with China recording 9.7% of non-oil trade in 2018. In addition, the value of China-UAE trade is estimated to be 43 billion US dollars, which is expected to rise. 

And so, this trade union between China with Dubai and the other 7 Emirates in the UAE is anticipated to grow annually by 9-10% until 2030. On top of that, China was the top country’s source of imports in 2018, consisting of fifteen per cent of total imports in the UAE.

In 2013-17, the trade ties between the UAE and China soared by 22%. The increase was primarily the Import-Export activities, thus benefiting African counties when 60% of that was re-exported to Europe and Africa.

Chinese nationals investing in real estate in the UAE

The majority of Chinese nationals and other foreigners in Dubai long to start their business in the UAE due to their keen interest in investing in real estate. In 2016-17, the Chinese investment in real estate soared to 64%. 

Therefore, since the real estate in Chinese is recording an increase, on the other hand, the UAE’s real estate is more affordable and economical as well. Additionally, the policies governing real estate in Dubai, the low rent, and the full ownership of properties in the UAE attract more Chinese entrepreneurs to invest in real estate. 

Furthermore, the Dubai Land Department (DLD) has tried to provide an easy way for the Chinese to invest in real estate by opening their representative offices in China. This made the Chinese invests 1.6 billion Dirhams in real estate, which that recorded in 2018. The DLD plans to increase their tactics to pave the way for more Chinese nationals to invest in Dubai real estate. 

The UAE is considered to play a huge part in China’s Silk Road project

This is another reason Chinese entrepreneurs set up their businesses in the UAE. China and UAE have joined hands to participate in China’s Silk Road Project. They essentially partnered to foster this initiative to boost trade and investment in the region.

Thus, China is present in Dubai, especially in Al- Maktoum airport facilitating the transport of commodities to the other parts of the regions. Also, the Arab-Chinese Trade is reported to have passed through the UAE plus 30% of China’s export and the entire Arab world.

All of these merits motivate many foreigners and Chinese nationals to seek ground for business set up in Dubai.

China and the UAE are together promoting the Belt and Road Initiatives

In 2013, the world was shocked when China stepped up and announced the One Belt One Road Initiative. These projects link more than 138 countries across the three continents. In addition, the One Belt One Road Initiative accounts for a profit of $29 Trillion. And the UAE is among the countries benefiting from this initiative.

Therefore, China and the UAE are actively promoting this initiative because they both are interested in this plan. And so, the UAE is simply acting as a gateway for foreigners, especially Chinese investors, by creating ways for business opportunities.

Final Thoughts

You might be wondering why the Chinese entrepreneurs are setting up businesses in Dubai, right? The UAE has popular benefits, such as a sunny climate, advanced infrastructure, and a tax-free environment. 

The Chinese nationals are starting their business in the UAE because of the robust trade and diplomatic ties between the UAE and China; China and the UAE are promoting the Belt and Road Initiatives. The Chinese nationals are investing in real estate in the UAE, among their others.