Dubai has transformed itself into a global trading hub and ultimate investment destination in many sectors of economy such as trading, import, export, logistics, tourism, hospitality, event management, financial services, construction and so on. There are many reasons why many entrepreneurs prefer or wish to do business in Dubai. Here are Top Ten reasons why one should choose Dubai for doing business.
1. Strategic Location.Being located strategically between Europe, Asia and Africa, Dubai is an ideal place for doing many business activities including international trading, import, export, logistics, tourism, hospitality, event management and so on. Dubai is located in the middle of the U.A.E. coast stretching along 400 miles. It has access both to the sea and has one of the largest airports in the world, through which Dubai facilitates transportation of goods between the East and the West. Thus, Dubai has an access to 2.5 billion consumer markets situated in the Gulf, Africa, Asia, CIS countries and Europe.
2. No Taxation.The UAE’s economy in general is considered to be the most liberal and most diversified in the region. Dubai applies NO TAXATION policy for almost all types of business activities with exception of branches of international banks, hotels and major oil and gas companies. The following taxes are NOT applied in Dubai:
3. Safe Place to Live and Do Business.Safety and well-being is one of the distinguished characters of Dubai as it is one of the safest places in the world. The crime index in Dubai is one of the lowest in the world. The serious crimes such as murder, kidnap, rape and physical assault represent 0.5 to 1 for each 100,000 population, compared to the world average of 6 to 8 for each 100,000. Moreover, the UAE in general is considered to be one of the politically stable countries in the Middle East region. Security and political stability are some of the most major factors that has brought many international investments and businesses into Dubai. Indeed business can grow only in safe environment.
4. Residency Visa. If you setup a company in Dubai and in other Emirates of the UAE in general, you will be eligible to get a UAE Residency Visa for yourself, your family members and for your expatriate employees. Having a UAE Residency Visa will give many benefits such as: you can open a current account in UAE Banks, you can lease an apartment for long-term basis, you can enter/exit to/from UAE multiple times, and you can get visas for other countries including Schengen countries more easily as a resident in the UAE.
5. Dubai Free Zones.Free Zone is a designated tax-free area, where foreigners can set up and do business in Dubai with full ownership and without partnering with a local emirati partner or agent. All Free Zones vary from one to another and offer licenses in various sectors. For example, there is a Free Zone for healthcare providers (Dubai Healthcare City or DHCC); there is a Free Zone for educational and training institutions (Dubai Knowledge Village); there is a Free Zone for media companies (Dubai Media City), there is a Free Zone for financial institutions and services providers (Dubai International Financial Center or DIFC) and many others. There are more than 20 Free Zones currently operating in Dubai itself.
6. Full Repatriation of Capital and Profits.Dubai has no restriction on repatriation of capital and profits. Though many businesses prefer to keep their money in the UAE itself due to its no-taxation policy. Moreover, there is no foreign exchange control and a stable exchange rate exists between the US Dollar and the UAE Dirham (US$1.00=AED 3.678).
7. Infrastructure. If you are starting a business in Dubai, then you don’t need to worry about finding an office, a retail shop, manufacturing unit or a warehouse – everything is ready to move in. New and high standard residential, tourism, industrial and commercial facilities have been built rapidly and on a massive scale during last decades. Moreover, new roads, more convenient public transport system, new airport are being developed. According to Travel and Tourism Competitiveness Report of WEF, the UAE’s infrastructure has been rated as among the best in the world. The country came second in quality of roads, third in quality of air transport, fifth in port infrastructure and eight in ground transport network.
8. Sea Ports and Airports. Dubai has one of the largest seaport (Jabal Ali Port) and the largest airport (Dubai International Airport) in the region. You do not feel any hassle in terms international freight – it is easily possible to bring goods to Dubai from any part of the world and likewise it is accessible to send goods from Dubai to any part of the world through sea, land and air.
9. Multinationals Companies. Many globally renowned multinational companies including Microsoft, LG Electronics, HP, Oracle, Nokia, Sony, Boeing, HSBC, Royal Bank of Scotland, Shell, Emirates Airlines, Proctor & Gamble, Adidas and BBC World have their regional offices in Dubai. Moreover, many internationally recognized universities have campuses located in Dubai, such as the American University, Michigan State University, Rochester Institute of Technology, Wollongong University, London School of Economics, London School of Business and Hult International Business School.
10. Living Standards. Last but not least, why to choose Dubai for business is the high quality of life and living conditions that one can enjoy in the Emirate. The UAE was ranked as the No.1 country with the best quality of life in the MEA region, and 15th in the world out of 160 countries. Moreover, UN Happiness Index has recently ranked the UAE as the 14thhappiest nation in the world. While enjoying high quality of life and living standards you can be more productive and inspired by the positive environment around you.
There are many other reasons of why Dubai has become one of the sought-after places for doing business, working and living. Expatriates make up nearly 90% of the total population in Dubai, who are immigrants from almost 200 countries of the world. Foreigners are attracted, among other reasons, by business and investment opportunities in the Emirate.