Why UAE Businesses Are Choosing Malaysia as Their Principal Hub
As someone who works every day with entrepreneurs navigating new countries, new systems, and new opportunities, I see one trend becoming stronger than ever: Malaysia is quietly becoming the new strategic base for foreign founders especially those coming from the UAE and the wider Arab world.
1. Malaysia offers something rare: stability, affordability, and global access
The UAE and Malaysia have always had a strong, respectful relationship in culture, diplomacy, and business. Trade between the two reached over USD 5.4 billion recently, and it keeps growing.
But what makes Malaysia stand out today is this combination:
- Strategic location in Southeast Asia - positioned in the heart of ASEAN with 680 million people
- Cost structure far more affordable than Dubai or Singapore
- Welcoming environment for Arab entrepreneurs - culturally familiar, peaceful, and supportive
2. The Principal Hub Scheme: the incentive everyone is talking about
One major reason UAE companies are coming here is the Principal Hub (PH) Scheme. This scheme is designed for companies that want to use Malaysia as their regional headquarters.
Corporate tax as low as 0% - 10%
Tax benefits for regional activities
Recognition as a regional command center
3. Malaysia's global agreements give you real power
Malaysia is part of RCEP, CPTPP, and ASEAN Free Trade Network, giving your company instant international reach and access to major global markets.
4. Why this matters for UAE & Arab entrepreneurs
Many Arab entrepreneurs want a second base outside the Gulf to expand. Malaysia provides affordability, high quality, cultural comfort, and long-term growth potential. For many clients, Malaysia becomes the Asia headquarters while Dubai remains the Middle East base.
Ready to explore Malaysia as your strategic hub?
If you are considering establishing presence in Malaysia, I can help you navigate the structure, compliance, and market entry strategy.
Contact Elite KenzaMalaysia is a door. And if you are smart enough to walk through it, it can transform everything.