November Edition 2020

24 “The message is upbeat for doing business in the UAE” The UAE is divided into the “Mainland” and the “Free Zones” “A modern and business oriented view to lawyering” Taylor Wessing’s Krapivensky added: “On inbound opportunities to the UAE for Israeli companies the message was upbeat, loud and clear: ‘Think bigger, the Gulf is bigger than the UAE.’ Seeing itself as the 'little brother' of its larger Saudi neighbor, the Emiratis are keen for Israelis to see beyond their own relatively small market and consider the opportunities further afield. Be it Saudi Arabia, the wider Arab world, the Indian subcontinent or even Southeast Asia, the opportunities for expansion have never been greater." A good starting point is to understand that the UAE is divided into the “Mainland” and the “Free Zones”. While the mainland requires UAE national participation in most forms of business enterprise, the free zones allow for 100% ownership by foreign nationals (with exceptions for certain types of business). As expected, there are certain limitations on a free zone company doing business in the mainland. Therefore, one of the first questions that a new entrant to the UAE is faced with is whether to incorporate in a free zone or on the mainland? The answer would generally depend upon the kind of business, the purpose of setting up in the UAE and where the end customers are but the options are there to choose the best option for you. “The UAE's so-called Free Zones" sit outside the scope of UAE law and therefore provide opportunity for 100% foreign ownership of a corporate entity (unlike the rest of the UAE, which normally requires a local partner to own 51% of the corporation),” added Krapivensky. “The prospect of setting up in a no-tax jurisdiction should also entice Israeli companies looking to optimize their tax structuring.” "Whilst both countries have their own history, culture and legal systems, there is clearly a modern and business oriented view to lawyering.Many international firms, particularly the London firms, have a long-time presence in the UAE and they will form the bridge for clients moving in both directions. Additionally,