Telephone Numbers
Telephone Numbers
United Arab Emirates Dubai Offshore Zones
For detailed information +90 542 381 3868 'Call.
The UAE's Offshore Investment Hubs: A Dubai vs. RAK Comparison
Thanks to its political stability in a dynamic region like the Middle East, the United Arab Emirates (UAE) offers attractive opportunities for those looking to do business in Dubai. Demonstrating remarkable resilience even against falling oil prices, the UAE economy achieved a healthy 3% GDP growth in 2015, although this was a slowdown compared to 2014. However, this picture varies among the Emirates. Abu Dhabi, which accounts for about 60% of the country's GDP, derives its economic strength largely from hydrocarbon production and control over sovereign wealth funds. Dubai, on the other hand, contributes a quarter of the country's GDP and stands out as the UAE's commercial heart with its advanced port and airport infrastructure. Expectations for 2016 were for Dubai's economic growth to accelerate.
Although rising oil prices played a part in this growth momentum, the government's economic diversification policies also make a significant contribution to sustainable prosperity. As a signatory to the General Agreement on Tariffs and Trade (GATT), the UAE has an economic structure that supports liberal and free trade. The UAE Dubai currency (Dirham) is stable and freely convertible. There are no restrictions for foreign investors regarding profit transfers or capital repatriation. Import duties are very low, and no taxes are applied to food, medicine, agricultural products, and goods intended for use in free zones. Competitive labor costs, zero corporate and personal income taxes are also available advantages. Furthermore, continuous steps are being taken to minimize bureaucracy in the processes of setting up a business in Dubai. All these factors, combined with the country's strategic location, create a unique environment for investors.
Ras Al Khaimah, managed by the Ras Al Khaimah Investment Authority (RAKIA) and commonly known as RAK Offshore.
The seven emirates of the UAE host a total of thirty-eight Free Zones, with twenty-two of them located in Dubai alone. Each zone is managed by a Free Trade Zone Authority focused on specific business sectors and industries.
Established in 1985, the Jebel Ali Free Zone Authority (JAFZA) was one of the first free zones, built around the Jebel Ali Port, just a few kilometers from downtown Dubai. Its purpose was to stimulate trade, support economic growth, attract foreign direct investment, and provide investors with an environment that bypasses the bureaucratic hurdles often encountered in international trade and financial services.
As an extension of this framework, the Dubai Offshore Company structure was launched in 2003 within JAFZA. This move provided a secure offshore haven for investors seeking confidentiality and privacy for their international business activities. Since then, JAFZA has played a pivotal role in Dubai's transformation into a regional business hub, attracting a wide variety of commercial activities to its vast economic zone.
Get Information on Opening an Offshore Company and Bank Account in Dubai
The Ras Al Khaimah Investment Authority (RAKIA), established in 2006 as a free zone, governs the offshore financial center, RAK Offshore. Since its inception, RAK Offshore has become a popular hub for foreign investors, companies, and individuals. The main reasons behind this popularity are the ease of setup processes, low costs, and a flexible structure.
In its first year of operation, this jurisdiction attracted more than 2,000 International Business Companies (IBCs) providing services in areas such as asset protection and real estate holding. In less than a decade, RAK, with its flexible regulations and attractive opportunities, has risen to a leading position in the offshore company formation in Dubai market, both in Dubai and across the UAE.
At first glance, both offshore centers appear to offer similar services and provide investors with nearly identical advantages:
However, there are important differences to consider when choosing between the two jurisdictions. For example, to incorporate a company in Dubai through JAFZA, the director must sign the formation documents in person, whereas RAK allows this to be done remotely. RAK also has more flexible rules: a single director is sufficient (instead of two), corporate directorship is permitted, and it is generally much more cost-effective.
While JAFZA has a long-established reputation for being in the market much longer, RAK has rapidly dominated the offshore company formation in Dubai sector in the UAE with the advantages it offers. The market dominance of RAK Offshore is so pronounced that even searches for setting up an offshore company in Dubai often lead individuals to RAK offshore services. This can sometimes be misleading and stems from the overwhelming dominance of RAK IBCs in the Middle East's offshore sector.
In fact, the number of firms offering JAFZA offshore services today is quite small, as most consulting firms openly recommend RAK as the primary destination in the UAE. Similarly, and somewhat confusingly, despite JAFZA being the official offshore authority in Dubai and RAK being in a completely separate emirate, many firms offer RAK offshore formations under the guise of "Dubai offshore services."
In conclusion, RAK is the de facto leader for international offshore services in both the Dubai and the broader UAE market, and it is fast becoming the number one choice for those looking to establish an offshore company.
United Arab Emirates Offshore Incorporation Services
Overview of Incorporating in Dubai
Dubai Offshore and RAK Offshore Financial Centers
Jebel Ali Free Zone Authority (JAFZA) Dubai Offshore Company
Ras Al Khaimah Investment Authority (RAKIA)
Shared Benefits of Dubai Offshore and RAK Offshore
Key Differences Between Dubai Offshore and RAK Offshore
The United Arab Emirates (UAE Dubai) has become an attractive option for doing business thanks to its Free Economic Zones, which offer a range of advantages to individuals and companies seeking confidential and tax-free opportunities.
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