Setting Up a Business in the UAE vs. Other GCC Countries In 2025
The Gulf Cooperation Council (GCC), comprising the UAE, Saudi Arabia, Qatar, Kuwait, Bahrain, and Oman, is a thriving hub for entrepreneurs and investors. Each country offers unique advantages and challenges when it comes to business setup. However, the UAE has emerged as a top choice due to its business-friendly environment, tax incentives, and world-class infrastructure.
In this guide, we’ll compare the UAE with other GCC countries across key factors such as business regulations, costs, taxation, ownership structures, and ease of doing business to help you make an informed decision.
1. Business Regulations and Legal Framework
United Arab Emirates (UAE)
The UAE offers multiple business structures, including Mainland, Free Zone, and Offshore companies.
100% foreign ownership is allowed in many sectors, especially within Free Zones.
The Dubai International Financial Centre (DIFC) and Abu Dhabi Global Market (ADGM) operate under independent regulatory frameworks aligned with international standards.
Saudi Arabia
Requires local sponsorship for most businesses, but recent reforms under Vision 2030 have eased foreign investment restrictions.
The Saudi Arabian General Investment Authority (SAGIA) streamlines business registration for international investors.
Qatar
Foreigners can own up to 100% in specific sectors, particularly in Free Zones (QFC and QFZA).
Outside of Free Zones, a local Qatari partner is required (51% ownership).
Regulatory approvals can take longer compared to the UAE.
Kuwait
One of the most restrictive countries in the GCC for foreign ownership.
Most businesses require a Kuwaiti national as a majority shareholder.
Investment laws are evolving, but market entry remains complex.
Bahrain
Allows 100% foreign ownership in most sectors, making it attractive for entrepreneurs.
Business setup is relatively straightforward, with Bahrain Economic Development Board (EDB) offering streamlined processes.
Oman
Foreign ownership is capped at 70% unless through Free Zones.
Business setup can take longer compared to the UAE.
The government offers incentives for industries aligned with economic diversification.
2. Cost of Business Setup
UAE: Business setup costs range from $3,000 to $10,000, with varying annual renewal fees.
Saudi Arabia: Costs are higher, between $5,000 and $15,000, due to government fees.
Qatar: Setup expenses range from $7,000 to $20,000, depending on the sector.
Kuwait: Costs exceed $10,000, requiring local partnerships.
Bahrain: More affordable, with expenses between $2,000 and $8,000.
Oman: Setup costs range from $3,000 to $12,000.
The UAE remains cost-competitive, with its wide range of Free Zones offering tailored packages for startups and established businesses.
3. Taxation Policies
UAE: 0% corporate tax (until June 2023), then 9% corporate tax for profits above 375,000 AED.
Saudi Arabia: 20% corporate tax (excluding local companies).
Qatar: 10% corporate tax, VAT at 5%.
Kuwait: 15% corporate tax for foreign businesses.
Bahrain & Oman: No corporate tax for most industries.
The UAE’s low-tax environment remains a significant advantage, attracting international companies and entrepreneurs.
4. Ownership Structures and Market Access
UAE: 100% foreign ownership in Free Zones and selected Mainland businesses.
Saudi Arabia: 100% ownership in select industries under SAGIA.
Qatar: Requires local sponsorship (51%) for most sectors outside Free Zones.
Kuwait: Strictest ownership rules, requiring majority local ownership.
Bahrain & Oman: Offer more flexibility in foreign ownership laws.
5. Ease of Doing Business
According to the World Bank's Ease of Doing Business Index, the UAE consistently ranks highest in the GCC for business setup, regulatory efficiency, and investor-friendly policies.
UAE: Ranks #16 globally, making it the most business-friendly in the GCC.
Saudi Arabia: Ranks #62, with ongoing improvements in regulatory reforms.
Qatar: Ranks #77, facing challenges in business licensing.
Kuwait: Ranks #83, with bureaucratic hurdles for foreign investors.
Bahrain: Ranks #43, offering a simplified setup process.
Oman: Ranks #68, with moderate business registration processes.
The UAE’s one-stop-shop approach via DED (Department of Economic Development) and Free Zones simplifies business registration compared to other GCC nations.
6. Workforce and Visa Regulations
UAE: Streamlined employment visa processes, multiple visa types for investors and employees.
Saudi Arabia: Saudization policy mandates local hiring.
Qatar: Tight labor regulations but competitive salaries.
Kuwait & Oman: Preference for local hiring over expats.
Bahrain: Expats can easily obtain work and investor visas.
The UAE offers the most business-friendly visa system, with Golden Visas and Freelancer Visas attracting global talent.
Final Verdict: Which Country is Best?
Ease of Doing Business: UAE ranks highest for its investor-friendly policies.
Lowest Taxes: Bahrain and the UAE have the most favorable tax conditions.
Foreign Ownership Flexibility: UAE and Bahrain offer the most options for 100% ownership.
Regulatory Efficiency: UAE leads with fast business registration and legal clarity.
Cost of Setup: Bahrain and the UAE offer the most competitive pricing for startups.
Why the UAE Stands Out
Business-Friendly Policies: Quick company registration, low bureaucracy.
Infrastructure: World-class connectivity, advanced logistics.
Tax Advantages: 0% income tax, competitive corporate tax.
Investor Confidence: Strong legal protection, international business environment.
Conclusion
While each GCC country has unique strengths, the UAE remains the top destination for businesses due to its ease of setup, flexible ownership rules, investor-friendly tax policies, and efficient regulatory framework.
For entrepreneurs looking to establish a scalable and globally connected business, Dubai and Abu Dhabi offer the best opportunities.
Need Expert Guidance? If you're considering expanding into the UAE or other GCC countries, consult with Deera Consultancy for business setup service to navigate the process smoothly.
