The United Arab Emirates, of which RAK is a member, is globally considered as one of the best environments for business and investment. This country offers attractive incentives and fully encourages foreign investors. With its most modern infrastructure, high quality of services, a liberal economy and a rock-steady political system, UAE has everything in place to keep attracting investment.

It is also is one of the safest countries in the world, with a near zero crime rate.

Its unique population comprises a 700,000-strong native population and 2,500,000 expatriates of all races, regions and religions. The country is known for its tolerant and very cosmopolitan outlook.

The flexibility of economic laws and regulations including absence of restrictions on capital movement, tax-free corporate and personal incomes and 100% ownership of projects, are some of what entrepreneurs enjoy here. Free Zones offer full repatriation of capital and other goodies.

A highly developed legal framework is in place to look after business. Federal Law No. 8 / 1984 (concerning commercial companies) regulate business and investment issues. It defines the different forms of companies and states conditions. Issues concerning the industrial sector are addressed and regulated by Federal Law No. 1 / 1979.

Issues in foreign participation in capital investment are determined according to  prevailing laws and regulations.

Setting up a business

UAE laws stipulate that nationals must have at least 51 per cent shareholding in joint or foreign ventures, established outside of free zones.

Foreign companies or individuals wanting to do business in the UAE must have a sponsor or service agent and obtain a trade license. Foreign companies must register with the local Chamber of Commerce and Industry, the Economic Development Department and with the Ministry of Finance.

Some businesses require approval from concerned governing authorities:

Public Joint Stock Company

A public joint stock company must have a minimum capital of AED 15 million (USD 4.08 million) and a minimum of 10 shareholders. It must be licensed by the Ministry of Economy and Commerce and approved by the Central Bank, if it covers banking or investment activities.

The company founders must subscribe to a minimum 20 per cent of its capital and a maximum of 45 per cent. A single shareholder must not subscribe to more than 10 per cent. The board of directors must not be fewer than five or more than nine, and must have a tenure of three years. Each member must control a minimum AED 100,000 (USD 27,250) of its shares and should not hold similar posts in more than three companies in the country at a time. 

Private Joint Stock Company