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Business

7 reasons to choose Dubai for business

UAE comprises of 7 emirates and among these Dubai holds global significance as a business hub. Dubai offers a lot of benefits and conveniences to businesses of all kinds. UAE is ranked number 8 in the list of the best worldwide commercial centers according to the GFCI (Global Financial Centers Index).Dubai was ranked fifth in the list of top 10 cities in the world for 2021, according to city rankings website Best Cities. The world bank has ranked Dubai as 1st on the list for starting business in The MENA Region.

Ever since it’s foundation nearly 50 years ago, the country’s economy rapidly shifted its dependence from fishing and pearls to financial and tourism powerhouse. The country is blessed with a good geographic location, therefore almost two thirds of the world’s population is accessible on a seven-hour flight. Efficient road, air and sea connections, high subsidies, a professional environment and the presence of world’s best talent make the UAE an attractive hub. Dubai is ideal for businesses who want a base for their Middle East and North African operations .In addition it is also a good place to further expand your business in an emerging market.

Here are 7 reasons to start business in Dubai.

1. Location

The strategic location of Dubai is a supportive factor for doing business. In other words, Dubai is located midway between the east and the west therefore linking the good of both worlds. It is adequately connected with countries in Europe, Asia, America, and Africa by airways and waterways. The world-class infrastructure of Dubai allows it to handle vast quantities of goods. It has both a seaport and airport therefore making logistics easier. Dubai International Airport (DXB) is ranked as the busiest international airport for six years in succession. Dubai’s largest port, Jebel Ali, is the busiest container port outside of Asia and the tenth-largest in the world. Thus, business related to international trading, import, export, tourism, and logistics can flourish successfully in this region.

2. Simple and easy business setup process

The Ministry of Economy is currently focusing its efforts towards enhancing the business climate in the UAE. In addition to this UAE is also trying to ensure that it meets the needs of the SME which is a key driver of the national economy. The Dubai government has taken businesses seriously .It is providing the right political and economic conditions for a business to survive. The stable political condition and strong government policies are very supportive to businesses running in the Mena region. The government policies are flexible. The policies are pro-business and pro-investment. To start a business in Dubai is quite easy, simple, and clear. The legal framework around company formation in Dubai is very simple and sound.

3. Growing Population and popular tourist destination

UAE has the highest population rate among the Arab countries. UAE population in 2021 was 9.99 Million according to the data provided by the United Nations. The Population Density in the United Arab Emirates is 118 per square kilometer. The Total Expat Population of UAE in 2021 is 8.84 million. Dubai’s Population in 2021 is 2.9 Million (source: World Population Review) amassing almost 50% of it as tourists and expats from all around the world that making it a city to do business.

UAE is home to a wide range of cultural and economic variations. It has a stable and enabling political system. Its capital flows are based on strong revenue streams. Tax environment is friendly and trade laws are highly favorable. UAE in itself is an example of how resilience and commitment can turn a little-known country into an economic, tourist and commercial capital.

4. Various Trading options

The existence of free zones and offshore trade are the supportive factor for starting and expanding international business in Dubai. The free zones in Dubai (FTZs) are special economic zones set up with the objective of offering tax concessions and custom duty benefits to expatriate investors. There are more than 30 free zones operating in Dubai. If you are looking for international trading with no tax or low tax benefits, an offshore company is the right choice for you.

Choose between offshore or free zone

Dubai offshore trade offers the ideal systems for business and wealth management, application of smart international investment strategies, ease and freedom of business operations. There is no income tax in Dubai. Also, there is no sales tax on the majority of goods and services. However few taxes are levied in the UAE such as Value-Added-Tax (5 percent), the Excise Tax for certain commodities (Tobacco, Energy Drinks, etc.), and the Tourism & Municipality Tax for Hotels.

Simple Taxation law

UAE also has a corporate tax only for foreign banks and oil companies. UAE is free from Income tax, tax on capital gains as well as profits, inheritance tax, tax on income from the property sale, etc. The tax-free environment for businesses is attracting investors to start a company in UAE. In conclusion it won’t be wrong to call Dubai a tax-free nation.  In addition to other perks, you get a tax-free residency permit in Dubai if you setup your business here.

5. Safety

Apart from its incredible landscape and infrastructure one of the best parts about living in Dubai is safety. Abu Dhabi and Dubai are the two safest cities to live in the Middle East according to the Economist Intelligence Unit’s Safe Cities Index (SCI,) 2021. Dubai is one of the safest cities in the world.

6. World class transport infrastructure

Dubai is extraordinarily well-positioned. Above all Dubai offers world class air transport capacity, transportation, port infrastructure and ever-expanding digital and telecommunication networks.

Dubai is now home to the world’s third-best ranked transport infrastructure, according to a new report published by respected property analyst Knight Frank. The firm’s Hub Report compared seven major cities worldwide in terms of the performance of their respective infrastructure, logistics and industrial sectors.

Dubai government has invested billions in transforming the city’s transport infrastructure to support overall economic growth and in particular industrial growth.

Ports infrastructure ranked fourth overall, while the city is one of the more affordable for industrial activity. Prime industrial rents priced at $103 per square meter, compared to the cheapest – Shanghai – at $101 per square meter.

“As part of the UAE’s economic diversification plan (UAE Vision 2021) and Dubai’s Industrial Strategy 2030, the development of the industrial sector is seen as strategically important goal for the sustained long-term success of economy,”

7. Continuous support to SMEs and Startup

We are going through a pandemic where most of the businesses are struggling globally. Above all Dubai’s leadership has provided exemplary support to SMEs and start-ups. This has led to an increase in trade and the emergence of many innovative ventures, which is a good response to the pandemic.

Therefore, you should not hesitate to start business in Dubai. First thing you should do is contact an experienced business consultant to get the best advice for all legal requirements. For instance, if you are willing to setup a LLC company in Dubai all you need to contact a consultant agency. They will help you to make the right plan for setting up your business. A consultant will guide you on all the document that you require to setup business. In other words, a business consultant will save your time so that you can focus on your core business activity.

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