Business news

25 Jun 2020

Belarus interested in setting up proprietary enterprises in UAE

Valery Sadokho. An archive photo

MINSK, 25 June (BelTA) – The possibility of setting up Belarusian enterprises in the United Arab Emirates was discussed during a webinar hosted by the National Marketing Center of the Ministry of Foreign Affairs on 25 June to discuss export, BelTA has learned.

Director of the National Marketing Center Valery Sadokho explained that as of 2018 the UAE legislation allows setting up commercial entities with 100% foreign capital in the country. Such enterprises may specialize in 122 kinds of manufacturing and services and can be established as limited liability companies or privately-owned joint-stock companies. The requirements include the availability of a minimal charter capital, the need to use new technologies, and the employment of the local workforce.

The official also mentioned factors conducive to the development of Belarusian export to the UAE. Those are the constant growth of the UAE economy thanks to diversification, a well-developed transport and logistics infrastructure, the absence of an income tax and a profit tax, a well-developed banking system, a stable domestic political situation. Valery Sadokho stressed that the UAE economy is the most open economy in the Middle East region. The appeal of the market has resulted in tough competition between European, American, and Asian companies on this market.

Experts of the National Marketing Center, the UAE companies IQ Fulfillment and MCE Advisory - Business, banking & finance experts, representatives of the Consulate General of Belarus in Dubai, and representatives of over 80 Belarusian export companies took part in the webinar.

In 2019 Belarus-UAE trade was close to $90 million. The main exports were special-purpose goods, petrochemical and woodworking products, and foods. Bilateral trade in services (IT, transportation, education, tourism, and other ones) exceeded $130 million. The UAE’s direct investments in the Belarusian economy were close to $50 million.