The United Arab Emirates is cutting start-up fees by more than 90 percent

The United Arab Emirates (UAE) will reduce the cost of starting a new business by "more than 90 percent" from Tuesday in an effort to increase the "regional and international competitiveness" of the emirate, which is already a magnet for trade. Authorities in Abu Dhabi, one of the seven emirates that make up the UAE, have stepped up efforts to attract new businesses in recent weeks. At the same time, corporate income taxes are already virtually zero in the UAE, which is trying to diversify its oil-dependent economy. "Fees for setting up a business in the emirate of Abu Dhabi have been reduced to 1,000 dirhams (€ 228.99), a reduction of more than 90 percent," a government media office said in a statement late Sunday night. The plan envisages the abolition of some fees and the reduction of others. "This move will significantly increase the ease of doing business in the emirate and increase Abu Dhabi's regional and international competitiveness," the statement said. According to the Organization for Economic Co-operation and Development (OECD), the United Arab Emirates is a "tax-free or negligible tax jurisdiction". The Emirates have recently launched a series of reforms. From June 1, foreigners can set up a company and maintain control over all capital, which has so far only been possible once in special "free" zones, while outside them they could retain control over a maximum of 49 percent of capital. Abu Dhabi and Dubai, another of the seven emirates, have traditionally competed for the location of regional headquarters of global companies on their territory, and have attracted thousands of them. In June, the Dubai government announced a series of reforms due to take effect in mid-September. Their goal is to reduce business costs and stimulate economic growth. In recent months, however, Saudi Arabia, Arab's largest economy, has also become a major competitor to the emirates, also trying to reduce its dependence on oil. Following the completion of a completely new business district in the capital, Riyadh, Saudi Arabia gave an ultimatum in February to foreign companies that must locate their regional headquarters there by 2024. Otherwise, they risk losing lucrative government contracts.