Avyanco Featured in Mid-Day: Why European Companies Are Building in the UAE Without Leaving Europe

Avyanco has been featured in Mid-Day in a July 2026 thought-leadership article on why a growing wave of European mid-market companies are opening a UAE base to run their Gulf growth — without leaving Europe. The piece is bylined by Vikas Dhingra, Chief Financial Officer of Avyanco Business Consultancy, and sets out the practical case for what he calls a “second base” strategy.

Read the full article on Mid-Day →

A “second base” — not an exit from Europe

The article's central argument is that most German, French and Dutch companies setting up in the UAE are not relocating away from Europe at all. They are building a second platform — a UAE entity to run Gulf and wider Middle East growth — while their manufacturing, R&D and European client book stay exactly where they are. Done properly, it is a structural decision about which activities sit where, not a nameplate.

What is pushing companies out — and pulling them in

On the push side, the piece points to the weight of European administrative and regulatory burden, and the fact that Brussels' own simplification measures are largely phased in over the coming years — too slow for a company that needs to grow now. On the pull side, it highlights the UAE's record inbound foreign direct investment — ranking it among the world's leading destinations and second globally for greenfield projects in UNCTAD's latest World Investment Report — alongside the fast-growing Gulf market on its doorstep.

Why the UAE structure works

The article is careful about the UAE tax position, and it matches what we advise clients every day:

• 0% corporate tax for a Qualifying Free Zone Person on qualifying income, and a 9% standard rate above the AED 375,000 threshold — among the most competitive regimes in the world.
• No personal income tax in the UAE.
• Substance and transfer pricing matter — a second base only works if the structure reflects where activity and value genuinely sit, and how the two entities price dealings between them.
• 100% foreign ownership in free zones and across most mainland activities.

Build your UAE second base with Avyanco

Avyanco helps European and international companies structure their UAE presence end-to-end — choosing the right free zone or mainland structure, the licence, corporate bank account, tax registration and residency, with corporate-tax and compliance advisory built in. Explore business setup in Dubai or talk to our team.

This article was authored by Avyanco's CFO and published by Mid-Day. This page summarises the coverage; see the original for the full piece.