Many Israeli companies are dealing with internal disruption as their R&D teams are located in places like Russia or Ukraine, including surrounding areas such as Belarus. As the region is and will continue to face increasing challenges, the plans for relocation are now on the table to ensure business continuity.

In an interview with the CEO of Herzog Strategic, a Tel Aviv based consulting firm, Ofer Sachs, confirmed that these plans are already materializing among their clients with Eastern European based operations. “This conflict, whether long term or short term, will have a lasting impact so it’s time to act in support of the employed civilians in Eastern Europe, and to maintain business for customers worldwide. That’s why in recent months, we have led numerous conversations with the UAE government departments as well as private institutions, to help companies move there from war torn or unstable areas in Europe.

At first, some companies did encourage their employees to live in remote locations and become digital nomads. However, employees with children do not have that privilege and need more from their relocation as they must consider their families’ safety and future.

As the decision-making process for these companies and their employees is complex and time sensitive, Sachs is sharing how Herzog Strategic walks through considerations with their clients to ensure they make cost effective decisions, maintain profitability, and leverage this crisis to build strong sustainable foundations for all stakeholders.

Aside from the UAE’s sunny weather and beautiful beaches, here are important factors from a corporate perspective and as an expat considering residency in the UAE.

Macro Analysis of the UAE

Located in Asia, the UAE is one of the top trade locations in the Eastern world, divided into seven Emirates – Dubai, Ajman, Raz Al Khaimah (RAK), Sharjah, Umm Al-Quwain, Fujairah, and the capital city – Abu Dhabi. The country has over 200 nationalities and a population of 10.08m people, of which 8.92m are expats!

The main languages used are English, Arabic, Urdu, Malayalam, and Hindi, with Islam as the official religion; however, practice of other religions is allowed. Perhaps most appealing is that workers in the UAE enjoy a  very generous tax bracket and don’t pay income taxes!

Just as inviting is the country’s quality of life, including literacy rates close to 95%, a life expectancy of 77.8 years, a highly ranked healthcare system, low crime rates, high standards of international education, and thriving social opportunities and extracurricular activities.

Working in the UAE

The UAE is considered one of the best places to live and settle for expats with an achievable work-life balance. Most people work 40–48-hour weeks and benefit from modern offices, fast internet speeds, and convenient travel to work via modern public transportation.

Setting Up Business – Which Zone Is Best for You?

First, to relocate employees and set up an office in the UAE, companies must obtain a business license, which will unlock local benefits. Companies must choose which Emirate to set up in, and within each of these are ‘mainland zones’, and ‘freezones’, each adhering to different cost structures, ability to provide foreign working permits/licenses, associated corporate costs, and specified business advantages.

Learn more about how freezones work here>>

These business licenses can range from AED 500 – 2,000+, with a further cost per visa application accounting for around AED 6,000-7,000 per employee.

It should be noted that a company might need a local partner, though not all zones require this. From here, the application itself is straightforward, requiring information such as company name, passports, list of business activities, email, mobile number, and photos of founders.

Office Spaces

To smoothly transition new employees, companies must offer an office space. Dubai is the most expensive option, following this is Abu Dhabi, Sharjah, and RAK, but in areas such as Ajman, offer cheaper rates of around AED 10,000 – 40,000 p/a per 5-7 employees. And the more visas or employees the company wishes to relocate, the more desks/office space they must pay for.

Residential Options

In terms of accommodation, the UAE has very good facilities, again Dubai having luxurious yet expensive options, but places like RAK can be more cost efficient, where employees can find themselves living in a 3-bedroom apartment with access to a pool and gym for around AED 30,000 p/a.

Education

For those relocating with their families and children, education is an important consideration. Emiratis attend school for free and do not study with expats. While expats typically send their children to English speaking institutions, with prices ranging from AED 14,000 – 40,000+ p/a, making it one of the more expensive considerations.

The Process

From start to finish, the full process can take between 4-6 weeks. The first step should entail a visit the UAE to acquire a business license, secure visas for employees, set up a business bank account, and secure office space. From there it will involve helping employees relocate such as securing accommodations, importing their goods, setting them up with HRMC/payroll, and attaining a medical license, car, and other essentials. It is also important to consider the type of business license, office location and size, salary, and economic cost differences, how far employees live from the office, amenities, as well as securing a trustworthy local partner for a successful transition