If you’re considering setting up a business in the Middle East, you might be debating between the UAE and Qatar.
The UAE is home to some of the world’s biggest tech hubs – Dubai and Abu Dhabi – whilst Doha is Qatar’s business hub, world-leading in finance and tech.
Whilst both countries are undoubtedly good options – when weighing them up against each other, there are a few things to consider.
We’ve put these side by side to help you make that choice a bit easier.
Setting Up A Business
Before you think about where to set up a business, it’s probably worth considering how easy it is to do so.
UAE: The Emirati government has invested a lot in making it easy for people to set up businesses. This doesn’t just apply for locals, but international entrepreneurs too.
The UAE’s Golden Visa programme for example, allows investors and business people to get a visa for themselves and their families to work and live in the UAE. This, alongside their easy set up processes online (which can set up a business in 1-5 days) make it a good choice for anyone looking for ease.
Qatar: Qatar is also doing its best to make this registration process easier, but it’s not quite as quick as the UAE. Online sources say it can take up to several weeks, depending on how much approval is needed.
Qatar also has a golden visa option, which requires an investment of at least $1,000,000. This is higher than the Emirates, which asks for a minimum of $200,000, making it a slightly higher barrier to entry.
Taxes
Luckily, both of these countries have good tax environments. Let’s compare them:
UAE: The UAE has no corporate tax for businesses that earn less than AED 375,000. Above this, they have to pay 9%.
In the UAE there is no personal income tax, which is a big draw for entrepreneurs looking to convert profits to income.
VAT sits at 5%.
Qatar: Qatar has a corporate tax rate of 10%, which is pretty much on par with that in the UAE.
Income tax is also at 0% for company employees, however self-employed individuals may be subject to 10% tax.
VAT sits at 0%, giving it an edge for companies that deal in goods and services.
Cost of Living
Both of these countries come with a high quality of living, but this does come at a cost.
Like with all countries, it does depend where you live, but here is a general guideline:
UAE: According to Cost of Living, a family of four’s estimated monthly costs are $3,451.9 (12,679.0AED) without rent.
A single person’s estimated monthly costs are $994.6 (3,653.0AED) without rent.
Qatar: The costs are reasonably similar in Qatar, with Cost of Living reporting a family of four estimated monthly costs are $3,162.6 (11,522.9QR) without rent.
A single person’s estimated monthly costs are $886.9 without rent.
Whilst Qatar does have a slightly lower average cost of living, the two are relatively similar – making both choices as good as each other!
Connection To Other Markets
Both the UAE and Qatar have national airlines that are well connected for international travel.
UAE: The UAE is home to the Emirates Airline, which connects Europe, The Middle East and Asia.
The UAE is also a huge hub for international trade, and is perfectly positioned between Europe and Asia time-zone wise. This makes it a solid choice for anyone looking to work internationally.
Qatar: Qatar is home to Qatar Airlines, which also boasts hundreds of connections around Europe, The Middle East and Africa.
Qatar is positioned very close to the UAE, so enjoys the same time-zone benefits for trade.
Culture and Language
Both countries have a big Muslim population, so general culture isn’t that different however:
UAE: The UAE has grown into a more cosmopolitan and liberal country. Women for example do not have to wear modest dress by law, and drinking alcohol is not illegal.
Qatar: Qatar is slightly more traditional, but the country and its laws are constantly evolving.
The Qatari government is making it easier for international entrepreneurs to operate there, so whilst laws are stricter, they are becoming more liberal.
Qatar vs UAE: Which Is Better For Business?
When weighing up which of these countries is best for your business, the choice is entirely personal!
Both have amazing access to international markets and governments that are evolving policies to be more business-friendly.
Either way, both are great choices for any business that is looking to establish itself in the Middle East. Good luck!
