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Doing Business in Abu Dhabi – Morison Menon

Abu Dhabi is the largest of the seven Emirates comprising the United Arab Emirates (the “UAE”). The UAE came into being as an independent foreign state on 2 December 1971.  The economy of the UAE is primarily based on Oil and Natural Gas though they are now going for diversification into other areas. Abu Dhabi leads in production of Oil & Gas amongst the seven emirates with large known reserves. Abu Dhabi being the federal capital of the UAE, houses number of federal ministries, the UAE Central Bank and other government institutions.  
Recently Morison Menon did a targeted survey with individual businessmen who have incorporate in abu dhabi and its free zones in uae in the last one decade or who are planning to company setup in abu dhabi. Our sample size was restricted to 200 businessmen and the survey was carried out during the month of January and February 2011.
Our findings provides interesting insight into merits of why Abu Dhabi should not be ignored by any businessmen willing  and  why having a business setup abu dhabi itself is not sufficient. The key findings of the survey are as follows:

  • More than half the respondents strongly felt that doing business in uae has helped them to improve their turnover.
  • Two-third of the respondents felt that cost of company setup abu dhabi was lower compared to Singapore or Hong Kong.
  • Only one-fourth of respondents felt that doing business in Dubai was easier than in Abu Dhabi.
  • More than two-third found that operating cost of company setups abu dhabi was much lower compared to Singapore and compared well with Dubai.
  • Answering the question on Abu Dhabi government entities welcoming new business setups, three-fourth of the respondents expressed satisfaction on the assistance provided to them.
  • More than four-fifth of the respondents were happy with the financial incentives provided the government and that being a major reason for them to company setup in abu dhabi .
  • On the talent front, more than half the business men liked the diversity of the workforce that was available for them to choose from while hiring talent.
  • On life style options available for them, three fourth of the business men felt that government initiatives have began showing results though still Dubai offered more recreational options compared to company setup abu dhabi.
  • On supply chain logistics and infrastructure more than four fifth of the respondents felt that what Abu Dhabi offered was best in the region and compared well with company formation abu dhabi .
  • On rentals for doing business in abu dhabi, half the respondents felt that rising rentals and increasing traffic and parking woes was a cause of concern though they felt that the initiatives that being taken by the government for company incorporation in abu dhabi solve the mitigate problem soon.

On the whole from the findings of the survey validate the perception that after the economic downturn that affected the global economy in later half of 2008 and early 2009, Abu Dhabi has been one of the least affected by the economic turmoil and rather has been growing strong in attracting new company set ups abu dhabi.
About Author :

Morison Menon is a leading Chartered Accountant Company in the Middle East with offices across UAE. The company provides entire gamut of business services ranging from assistance in setup services,company setup,company formation,company incorporation and doing business in free zones of Abu dhabi.The company has assisted more than 1000 companies to setup business in UAE and especially in Abu Dhabi.

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