If you are an investor in the UAE and looking for avenues to park your investment in a productive venture, then this piece will give you enough knowledge to get started with the process of making a safe investment in the import/export business in the UAE. Most of the investors who are new to the field get overwhelmed by the thought of investing a hefty amount in the import/export business. Many even back-out of such valuable opportunity just because of the fear factor. Faisal Ali Qane has been guiding the new investors over a period of time now and has developed considerable expertise in the business. Here are his thoughts on why and how to make an investment in the import/export business in the UAE.
Why choosing the UAE as an investment destination is a wise decision?
The UAE is one of the busiest hubs in the region when it comes to import/export business. Due to its excellent geographical location, it offers valuable advantages and benefits to investors from around the globe. A majority of the world’s population is within an eight-hour flight range of the UAE. Given these advantages, investors look forward to making an investment in the import/export business in the UAE.
The UAE’s investor-friendly laws permit for a general trading license. It is a unique license that allows the investors to operate in a number of sectors from cosmetics to even huge construction materials. The UAE’s exports cross the USD 200bn mark last year which speaks volumes in terms of the potential that this tiny country holds for the new investors.
Qane Investment has been serving individuals and groups and helping them set-up their import/export businesses by affording them financial securities.
It has become a favorite choice of businessmen from around the world due to the efficiency and ease that this Corporation offers to its investors. Faisal Ali Qane has always believed in serving the businessmen especially new entrants who want to make a safe investment and start an import/export business in the UAE.
Step-wise process of starting import/export business in the UAE:
Choosing the right free-zone for business setup:
The UAE as a region is divided into 49 free-zones. An investor must choose one of these free-zones to start their import/export business. However, it requires a bit of thought to choose the right one for your
business. For instance, if you prefer sea-route trading for your goods/materials then choosing Jebel Ali Free Zone (JAFZA) would be your first choice as an investor. JAFZA is a business hub for import/export business and is a perfect choice for choosing to trade through sea-route.
There are investors who prefer quick trade of their goods so they go for air cargo through Dubai Airport Free Zone (DAFZA). So the overall choice would completely depend upon the investors’ preferences. They can choose from these 49 free-zone areas accordingly. Faisal Ali Qane’s Investment Corporation offers valuable services to its clients who need help in this entire business setup.
An affordable business start-up:
A new investor can easily gain insight into the processes involved in setting up a cost-effective import/export business in the UAE. The total cost of setting up a new business at JAFZA, for example, does not exceed AED 16,000, which is a reasonable cost to start a business in the UAE for any investor. Also, the benefits that this investment offers to the stakeholders far out-weigh any costs associated with it.
The next important step is to find a warehouse to store goods that are to be imported/exported. This can be done by renting out the warehousing spaces. The average cost incurred varies from AED 350-600 per square per meter per year. The number of visas also depends on this space and the size of the overall business. Some free-zones however, provide investors with free storage space at no upfront payment.
Partner to be chosen for import/export business:
It is a primary requirement for making an investment in a free-zone that investor has to collaborate with a local partner in order to distribute goods throughout the UAE. The new entrants in this business choose local partners, there are others who do away with the middle-man and choose to conduct their operations entirely on their own instead of collaborating with any partners.
The Customs clearance charges:
Paying custom duties to get the goods cleared for import/export is a common phenomenon around the globe. The UAE also has similar laws for the clearance of goods for import and export. All the investors are liable to pay these charges regardless of the free-zone they choose for trade. The cost can vary however, it mostly hovers around 5% mark.
The number of visas:
Each free zone has a maximum cap on the number of visas allowed to an investor. This cap usually depends on the size of the overall business by an investor. Big business gets more visas and vice versa. In most cases, the size of warehouse capacity is a deciding factor. The bigger the warehouse capacity the more visas the investor gets. On average one visa is given per 100 square feet.
How dependants are sponsored?
Dependants are sponsored by the investor. It is a simple process consisting of the following steps:
a. Entry permit
b. Status of adjustment
c. A medical fitness test
d. Emirates ID registration
e. Visa Stamping
These processes, though seemingly simple, can become quite cumbersome especially for those who are new to the field. In this regard, Faisal Qane’s Corporation has been offering its valuable services to clients from around the globe.
Considerations before opening a business account:
Once the setup of the business is complete, it is important that an account is opened in order to carry out the business transactions. A new investor may have trouble in finding the right bank for their operations. There are a number of considerations such as the swiftness of operations and efficiency that the bank offers to its investors. However, if it still seems like a challenge then Qane Investment Corporation can always be consulted for services.
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