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Ease of Doing Business in the UAE

Emirate has become an attractive destination for companies seeking expansion opportunities in the region

Expanding its presence in the Middle East, airpay has identified the UAE as a promising landscape for growth. Renowned for its business-friendly environment and extensive infrastructure, the UAE has become an attractive destination for companies seeking expansion opportunities.

The region’s appeal lies in its robust business ecosystem, which is supported by various factors. As per the World Bank’s Ease of Doing Business Index, the UAE ranked 16th globally, showcasing its favourable regulatory framework and supportive policies. The World Citizenship Report 2023 has rated the UAE 20th globally and first in the Middle East and Arab region in ‘Economic Opportunity Rankings’ in the list of 128 countries, positioning it higher than Iceland, Malaysia, China, Qatar, Italy, Saudi Arabia, South Korea and Turkey among others.

Additionally, the UAE is recognised for its advanced infrastructure, highlighted by modern transportation networks, state-of-the-art facilities, and robust logistical capabilities.

The UAE has recently introduced several business-friendly initiatives to encourage ease of operation, including a new long-term visa system, full foreign ownership rights, minimal income tax, and the signing of the Comprehensive Economic Partnership Agreement (Cepa) with countries like India and Israel, simplifying trade with major economies. According to the 2022 IMD World Competitiveness Ranking, the UAE stands as the most competitive economy in the Arab World. Moreover, both the Economist Intelligence Unit and the World Bank have lauded the Emirates for its highly conducive business environment.

In terms of economic indicators, the UAE demonstrates remarkable stability and growth. The UAE's economy is the second largest in the Middle East (after Saudi Arabia), with a Gross Domestic Product (GDP) of $415 billion (Dh1.83 trillion) in 2021-23. This reflects a resilient economy despite global challenges. The country's strategic location also contributes significantly to its attractiveness as a regional business hub, providing easy access to the Middle Eastern and international markets.

Moreover, the UAE government's forward-looking initiatives promoting foreign investment, innovation, and entrepreneurship have significantly elevated its status as a sought-after business destination. The introduction of free zones coupled with tax incentives and granting 100 per cent foreign ownership rights has attracted a substantial influx of companies across various sectors. Notably, the tech and fintech industries have been particularly drawn to establishing their operations in the UAE.

For instance, in 2021 alone, over 2,000 new companies were established in the country’s free zones, marking a 22 per cent increase compared to the previous year, highlighting the growing interest in the UAE’s business-friendly environment. Furthermore, the UAE’s unwavering focus on fostering innovation and technological advancements harmonizes perfectly with airpay’s mission to offer cutting-edge financial solutions. With the UAE’s robust digital infrastructure and a tech-savvy population, airpay finds itself in a promising market to introduce its innovative payment solutions.

The UAE’s diverse and cosmopolitan population offers an exceptional opportunity for airpay to expand its services to a broader customer base. According to recent statistics, the UAE has a population exceeding 9.9 million people, comprising diverse nationalities and cultures.

Moreover, the country witnesses a high expatriate population, with expats constituting around 88.5 per cent of the total population. This cultural diversity and international demographic structure present airpay with an ideal platform to address a variety of financial needs. By consolidating its operations in this region, airpay aims to leverage this demographic advantage, tapping into various segments, including retail customers, small and medium-sized enterprises, and multinational corporations, to enhance its services and offer tailored financial solutions. As of 2023, the UAE’s smartphone penetration rate reached approximately 96 per cent, signifying the population's high adoption of digital technologies.

airpay’s expansion into the UAE

A Conversation with Founder of airpay Kunal Jhunjhunwala on Fostering Growth in a Business-Friendly Environment

Could you share insights into airpay’s decision to expand its operations into the UAE?

UAE has a rapidly growing digital payments market, fuelled by high smartphone penetration, a young and tech-savvy population, and government initiatives promoting cashless transactions. airpay’s decision to extend its footprint into the UAE was influenced by the region's burgeoning digital payments landscape. The UAE boasts a progressive market driven by robust smartphone usage, a tech-savvy demographic, and government initiatives promoting cashless transactions. This expansion was a strategic move fuelled by airpay's vision to serve dynamic markets. Leveraging the UAE's pro-business environment, characterized by open ownership policies, attractive tax incentives, and cutting-edge infrastructure, airpay saw an opportunity to introduce its innovative financial solutions. This aligns seamlessly with the UAE's hunger for modern financial services and technology-driven solutions. Thus, our entry into the UAE represents more than just expansion; it signifies a strategic alliance to drive Dubai's transformation into a thriving digital economy.

What specific advantages did airpay find in the UAE compared to other markets?

The UAE government’s steadfast commitment to cultivating innovation and embracing technological advancements has significantly influenced our decision at airpay. The country’s proactive approach towards shaping a digital-driven future strongly resonates with our fundamental mission. Moreover, the ease of conducting business, coupled with a diverse and forward-thinking population, has been instrumental. The readiness of consumers to adopt digital services and the overall favourable environment align seamlessly with our expansion objectives at airpay. These standout advantages provide an ideal backdrop for our initiatives and resonate well with our aspirations for growth and innovation.

Could you elaborate on how airpay intends to leverage the business environment in the UAE?

In the UAE, our primary goal at airpay is to introduce pioneering payment solutions designed to address the wide spectrum of financial requirements among consumers and businesses. Leveraging the nation's robust digital infrastructure and tech-oriented population, we aim to provide a range of financial services that are seamless, secure, and innovative. This encompasses initiatives focused on improving digital payment experiences and delivering solutions tailored to different industry sectors. Our commitment lies in offering cutting-edge financial services that cater to the evolving needs of the UAE's diverse marketplace.

What role do you foresee the UAE playing in airpay’s long-term growth strategy?

Expanding our operations in the UAE represents a pivotal move in airpay’s growth trajectory. Our strategy involves not only consolidating our presence but also establishing a robust foundation for extensive growth and customer outreach in the region. The UAE’s diverse and cosmopolitan population offers a fertile ground for us to diversify our customer base. We aim to cater to the diverse financial needs of this dynamic market by leveraging innovative financial solutions. This approach aligns with our commitment to providing tailored services that evolve with the changing needs of our clientele. With a focus on innovation and customer-centricity, we aim to become a preferred choice for a wide spectrum of consumers and businesses in the UAE.