North America, Europe, and Asia have traditionally been business powerhouses, with each region boasting hugely successful companies across numerous industries.
However, their place at the top of the tree looks set to be increasingly threatened by several ambitious Middle East nations over the next few years.
The region is ripe for development, with the younger demographic, increased digital adoption, and high-income levels in some countries making it an enticing proposition.
The United Arab Emirates And Kuwait will likely be at the forefront of the growth, particularly with their respective governments reportedly pumping huge resources into business development.
The UAE can be argued to have the edge in this respect, especially when factoring in significant regulatory framework changes in potential growth sectors.
The online gambling industry is a great example of this in action, with many leading brands in this sector now establishing a vibrant presence in the UAE.
The online gambling industry is a great example of this in action, with many leading brands in this sector now establishing a vibrant presence in the Middle East.
Kuwait is also attracting the attention of online casino operators, as the reduction of the minimum capital requirement a few years ago has made the country an attractive destination for start-ups.
Sites such as YYY casino have been steadily growing their footprint in Kuwait by welcoming players from the country and the wider region, and are now well-placed to capitalize on the potential for business growth there.
While Kuwait offers plenty of potential for new enterprises, many respected analysts believe it is easier for businesses to function effectively in the UAE.
The country’s rulers have signed double tax agreements with dozens of nations including the United Kingdom, Ireland, Germany, and many more.
One of the primary hindrances to opening a new business overseas is deciphering the local tax laws and working out how to efficiently leverage them.
The UAE offers several different types of business and tax categories including ‘free zones’ which offer businesses 100 percent tax exemptions.
This allows start-up firms or established brands to establish themselves in the UAE and keep all the profits they generate without paying anything to the government.
Relaxed company ownership laws also make the UAE an attractive proposition for businesses bidding to establish a foothold in the Middle East.
Under typical foreign investment laws, owners are generally forced to team up with a local investor and hand over a 51% share of the enterprise.
However, the UAE has removed that requirement, allowing foreign business owners to enjoy the fruits of their labours in their entirety.
By contrast, private-sector investors have long bemoaned that the political system in Kuwait has been a significant hindrance to their ambitions.
Crown Prince Mishal Al-Ahmad Al-Jaber Al-Sabah vowed last year that things would change to ensure his country could keep pace with other leading Middle East nations.
Despite this, entrepreneurs in numerous sectors claim they struggle to secure investments for business ideas outside of the well-established energy sector.
This has resulted in Kuwait being tipped to suffer from the sharpest drop in the rate of Gross Domestic Product (GDP) increase in the Middle East.
Plans to become a global industry and commerce hub by 2035 remain at the blueprint stage, while most of their neighbors are powering ahead with ambitious plans.
A government moves to implement price controls was a further sign that Kuwait still has some way to go before it becomes a truly welcoming hub for new businesses.
There are no such issues in the UAE, with the country’s younger rulers seemingly more open to operating in ways that make the country attractive to overseas investors.
As mentioned earlier, the younger demographic, increased digital adoption and high-income levels are all factors contributing to economic growth in the UAE.
Small and medium-sized enterprises offering digital solutions are one of the fastest-growing sectors, while retail and gaming are also booming.
Business parks, warehousing, office spaces, transportation, and utilities are other areas that are growing rapidly in the UAE.
The UAE government has worked tirelessly to ensure that foreign investors have no obstacles placed in the way of new businesses getting themselves off the ground.
Geographical location is another factor that makes the UAE an extremely enticing proposition for new businesses across numerous industries.
It is ideally located in easy reach of three continents – Europa, Africa, and Asia – with major airlines regularly flying between each region.
Kuwait also benefits from the same advantage but is unable to capitalize effectively due to the negative elements previously highlighted.
If Kuwait’s rulers are able to follow through on their promise to move with the times, the country has every chance of becoming a welcoming base for new businesses.
However, the UAE is unquestionably ahead of the curve as things stand and looks well-placed to become a major global business player over the next few years.
