In a world dominated by the continued growth of globalization, there are more and more enterprises who choose to undertake sales abroad and that is why it is always greater the request by specific counseling at the’internationalization.
We have often talked about the benefits that exporting (digital and otherwise) can bring to many Italian companies, while at the same time emphasizing the importance of being assisted in this process by professionals with proven experience in the field.
Today we will treat advisory at the’internationalization in relation to the United Arab Emirates, which is a growing market of great interest for exports in multiple areas.
What are the reasons why the United Arab Emirates is becoming. an increasingly popular export destination in recent years?
Mainly because of their political stability and prosperous economy, which results in high per capita income in all member states of this federation. This makes the UAE one of the fastest growing countries (source Trading Economics).
The Emirates is ranked 19th in importers (source the World Investment Report of 2022) for a turnover that touches $21 billion, this is also thanks to the fact that now investors from abroad can obtain 100% of ownership of enterprises located in the territory.
In fact there are in the country of the Free Trade Zone (source Italian Trade Agency) where there are no limits on the management of profits, with the possibility of tax relief for up to 50 years. At the same time, customs duties do not have to be paid.
Important benefits, although the import tax is around 5% in areas outside FTZs, so not high.
Made in Italy is particularly valued in the United Arab Emirates, particularly for the jewelry sector, which accounts for 18.8% of global exports (source the Ministry of Foreign Affairs).
Next we find machinery, clothing and cosmetics.
We note to be virtually all business sectors to grow, therefore selling in the United Arab Emirates represents an excellent business option for many Italian companies wishing to expand their business outside their national borders.
An internationalization process, however, requires a ’careful preliminary assessment and the setting of a strategy that allows the company to optimize time and resources.
There are many opportunities to export many products successfully, but to establish one's brand in a truly successful and lasting way, multiple factors must be analyzed very carefully. They can be listed as follows:
What products would you like to export to the UAE?
What are your main competitors?
Do you have an e-commerce business that allows international purchases?
Already selling abroad? By what margins?
What are your goals, and your timeline?
These are just some of the basic questions for a internationalization consulting that can enable a truly beneficial internalization process for your business, one that minimizes and risks and expresses its full potential.
There are export-related areas in the UAE that will tend to receive greater demand in the future. We are talking about renewable energy, new technologies, infrastructure.
As we have already mentioned, however, there are many the sectors market in which to sell in the United Arab Emirates.
Octagona can help you work out internationalization consulting that will enable you to establish your brand abroad in the most effective way, not only in the planning and strategy behind this process, but also by dealing with export-related bureaucracy and logistics.
Contact us today to find out everything we can do for you and your business.
The United Arab Emirates offers political stability, a prosperous economy, and a high per capita income in all the states of the federation. They rank 19th among the world’s importers according to the World Investment Report 2022, with a turnover of $21 billion. Moreover, almost all commercial sectors are growing.
The Free Trade Zones in the United Arab Emirates allow foreign investors to hold 100% of the company’s ownership, with no limits on the management of profits. There are no customs duties and it is possible to obtain tax breaks of up to 50 years. This information is provided by the Italian Trade Agency and makes these zones very attractive to companies.
Outside the Free Trade Zones, the import tax in the United Arab Emirates is around 5%, a level considered not high. Within the Free Trade Zones, however, no customs duties are paid. The choice between the two solutions depends on the business model and the company’s entry strategy.
Made in Italy is highly appreciated in the United Arab Emirates, particularly jewelry, which accounts for 18.8% of global exports according to the Ministry of Foreign Affairs. Next come machinery, clothing, and cosmetics. In the future, greater demand is expected for renewable energy, new technologies, and infrastructure.
Before exporting to the United Arab Emirates, it is necessary to analyze the products to be sold, the main competitors, the presence of an e-commerce that allows international purchases, any foreign sales already active with their respective margins, objectives and timelines. This evaluation optimizes time and resources and reduces risks.
Octagona assists companies in internationalization towards the United Arab Emirates, from planning and strategy to managing the bureaucracy and logistics related to exports. The goal is to establish the brand abroad in the most effective way, with a path built around the company’s objectives and timelines.
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