Iran had cold political relations with the United Arab Emirates, since the latter’s formation in 1971. However, the diplomatic and corporate ties between Iran and the UAE are gradually improving. You can move an Iranian business to Dubai to make the most of the booming economic potential there.
The governments of the UAE and Iran are effectively formalizing the bilateral links. Accordingly, the Iranian business community is welcome in the new Emirati corporate environment. Also, many Iranian nationals are living in Dubai due to the issuance of the UAE residency visas.
Both countries are fostering strong commercial bonds between the two nations. The UAE offers a significant expatriate community of Iranians with facilities like schools, banks, and hospitals. Abu Dhabi and Dubai are home to a growing number of expat Iranian business owners and workers.
Iranian citizens can easily set up businesses in Dubai and across the UAE. Moreover, they can apply for the UAE residency permits by obtaining trade licenses. Launching a new company in the UAE is affordable and simple for the Iranian migrants.
Key takeaways of Iranian business relocation to the UAE
Here are the notable findings and insights of the Iranian corporate relocation to the UAE.
- Emirati economic diversification by reducing reliance on oil/gas, increasing non-oil sector growth, and expanding tourism is a prospect for Iranians.
- The UAE hosts a significant community of Iranians with facilities like open business environment, cultural inclusion, schools, banks, and hospitals.
- Iranian investors must consider purchasing property in Dubai due to its strategic location, thriving real estate market, and tax-free environment.
- High rental yields, strong legal framework, and world-class infrastructure are the major drivers for Iranian relocation to the UAE.
- Over 80% of the UAE exports to Iran are re-exporting of the products got from other countries.
- The re-export trade from the UAE to Iran was worth over $8.5 billion in 2010.
- Incidentally, one of the largest sources of imports for Iran is the UAE.
- Over 500,000 Iranian nationals are living in the UAE due to residency visas, and bilateral strong commercial ties.
Process of relocating your Iranian business to Dubai
This is the step-by-step procedure of moving your Iranian business to Dubai.
- Choose business activity
- Determine corporate structure
- Select company name
- Finalize legal jurisdiction
- Get initial approval
- Decide business license
- Prepare legal paperwork
- Acquire license after approval
- Register bank account
Now, we briefly look upon the essential steps of transferring an Iranian business to Dubai, UAE.
Choose business activity
Iranian investors must pick a promising business activity in Dubai. Or, their existing corporate activity must have a great scope in the UAE. Whether, you are starting new, or shifting a working Iranian business to Dubai, ensure it has a good potential.
Determine corporate structure
Pick the optimal company structure by selecting between LLC or sole establishment, depending on your business activity.
Select company name
The next step is to choose the right name for your Iranian company in the UAE. Also, come up with a unique trade name that fulfills the UAE’s corporate naming conventions. Make certain, both names describe your business idea, and align with your brand.
Finalize legal jurisdiction
Iran nationals must decide whether to operate a business from mainland Dubai, or a free trade zone. Businesses in Dubai mainland can trade directly in the UAE markets, and sign government agreements. Whereas, free zones offer quick registration mechanism, ongoing assistance, and financial incentives (like tax breaks and no capital repatriation restrictions).
Get initial approval
Receive the no objection certificate (NOC) from the Department of Economic Development (DED) in Dubai or a free zone authority.
Decide business license
Single out an appropriate license while relocating an Iranian business to Dubai from these options.
- Industrial license: Manufacturing companies need an industrial license for producing the merchandise in Dubai.
- Trade license: Commercial businesses mostly require a trade license in the UAE.
- Professional license: Service-based businesses require a professional license in Dubai.
Prepare legal paperwork
Draft these legal documents for successful Iranian business relocation to Dubai.
- Copy of valid passport
- Photocopy of the UAE visa
- Business proposal
- NOC from DED or the free zone authority
- Memorandum of Association (MOA)
- Articles of Association (AOA), if applicable
- Proof of residency in the UAE
- Rent/lease agreement of business premises
- Bank reference letter
- Medical certificate
- Police clearance certificate
Acquire license after approval
Submit the application form after attaching the legal documentation to the DED or the chosen free zone authority. Pay the licensing fee and all other regulator dues.
Register bank account
Iranian expats have to create a business banking account to conduct corporate operations and carry out financial transactions.
Leading business sectors for Iranian investors in the UAE
These are some profitable sectors for the Iranian nationals aiming business relocation to the UAE.
Now, we briefly look upon these rewarding business opportunities for Iranian entrepreneurs in the UAE.
Travel and tourism
In the Iranian-Emirati bilateral vision, tourism sector is crucial for both countries. Over 200 weekly flights are operating between the UAE and Iran. Subsequently, it marks a great scope for the travel businesses and tour operators.
Energy sector
The UAE and Iran have significant oil/gas reserves, and are important members of the OPEC. Iranian petroleum companies can undertake oil and gas exploration and extraction activities across the UAE. In the same way, Iranians can participate in solar power production and renewable energy generation across the UAE.
Trade, logistics, and transit
Iran and the UAE have significant opportunities for cooperation in transportation/transit infrastructure, trade, and air traffic development. The International North-South Transportation Corridor (INSTC) allows Iran to access Central Asia, Russia, the EAEU, and Eastern Europe. By interconnecting with the UAE and the Arabian countries, the dividends become manifolds.
Fully functional UAE seaports can facilitate supply chain operations of the Iranian companies. The UAE’s Jebel Ali Port and Iran’s Bushehr Port have a direct container shipping line. Iran can have easier international access thanks to the logistical hub of the UAE between Asia, Africa, and Europe.
Calculate business start-up cost
Overview of the ties between Iran and the UAE
After the establishment of the UAE in 1971, its ties with Iran were sour. Overtaking of the islands of Abu Musa and Greater and Lesser Tunbs is one reason. The UAE as well claims territorial sovereignty over these islands.
In 2016, the UAE reduced its diplomatic relations with Iran, while supporting international sanctions. The UAE closed accounts of Iranian citizens, banks, and companies. In 2019, an Emirati delegation tried to de-escalate tensions after an attack on Iranian oil tankers off the UAE coast.
Visit of Iran’s Supreme National Security Council head to Abu Dhabi further improved the relations. Diplomatic ties expanded with the re-establishment of ambassadorial relations and increased meetings between the officials and ministers. In March 2023, Iran announced an agreement to facilitate the trading using the UAE Dirhams.
Economic relationship between the UAE and Iran
The UAE and Iran hold a geopolitical rivalry due to some territorial disputes. Despite the initial diplomatic deadlock, the economic relations between Iran and the UAE have become strong in recent years. The UAE is now Iran’s most important link to the global economy due to financial sanctions and legal barriers.
No doubt, both countries enjoy significant advantages from their recent bilateral trade relationship. Iran is profiting from billions of dollars in trade through the UAE’s seaports and airports. Since 2007, the UAE is trading with Iran more than Germany and Italy, once its popular European trading partners. China is conducting most of its bilateral trade with Iran via UAE (due to its strong commercial ties with Iran).
The Iranian diaspora living in the UAE is a platform for increasing mutual business prospects. Similarly, the prominent Emirati families of Iranian origin can help companies from Iran to implement investment plans in the UAE. Iran and the UAE are strengthening the bilateral trade with financial mechanisms to finance the legitimate transactions.
Conclusion
Iranian investors must consider doing business in the UAE due to its strategic location in the MENA region. Thriving properties, tax-free environment, high revenue yields, strong legal framework, and world-class infrastructure put Dubai in great demand. The UAE and Iran are set to sign memorandum of understanding (MOU) to avoid double taxation and facilitate mutual investment.
Greater cooperation in multilateral economic institutions is the way to go for Iran and the UAE governments. Creation of a regional economic union in the Middle East is a suitable strategy for business development. Iran and the UAE can cooperate to fight global warming, climate crisis, sea level rise, desertification, and marine ecosystem destruction.
Do you want to move your Iranian business to Dubai? The UAE has a plenty of opportunities for the Iranian investors. Begin your enterprising journey with the help of KWS Middle East now. Begin your enterprising journey in Dubai with company relocation from Iran with the help of KWS Middle East now.
FAQs about Iranian business relocation to Dubai
These are the answers to the common questions about transferring an Iranian business to Dubai, UAE.
Should I move my Iranian business to Dubai?
The UAE provides a pro-business environment that optimizes profits, growth, and ownership retention. Especially, corporate relocation to Dubai is a cost-effective solution for Iranian investors to maximize the revenue generation. So, you can transfer your Iranian business to Dubai to make the most of the opportunities there.
What does the Iran government say about investing abroad?
The Iran government encourages citizens to invest internationally for diversification and global opportunities, in stable economies like the UAE.
How long does it take to relocate an Iranian business to the UAE?
The company registration process for Iranian citizens in Dubai can finish within 3-5 working days. However, additional regulatory approvals and acquiring of the workspace may increase the overall timeline to a month. Professional business setup consultants having expertise in serving Iranian nationality holders can streamline this task to save time.
What is the cost of establishing an Iranian company in the UAE?
The cost of company incorporation for Iranians varies depending on the chosen business structure, location, and regulatory approvals. Normally, an LLC company registration costs between AED 20,000 and 30,000 for expatriates including Iranian entrepreneurs. Additional fee of extra professional permits can increase the overall initial expenditure to AED 50,000 or more.
How does the Dubai government support global investors like Iranians?
The government of Dubai has many investor-friendly policies for expatriates. For instance, foreign ownership in free zones, profit repatriation without restrictions, long-term residency visas for property investors, etc. All of these benefits are available to the Iranian investors in the UAE as well.
How does the healthcare system of Dubai compare to Iran?
Dubai’s healthcare system with state-of-the-art facilities, advanced technology, and qualified professionals is better than Iran’s. The growing population of the UAE and its medical tourism means there is scope for more clinics and hospitals. Iranian healthcare investors and medical staff considering relocation can count on Dubai as their destination.
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