Last Updated on: 22nd August 2023, 05:54 pm
Why is Everyone Moving To Dubai?
Dubai has quickly become a business hub that attracts entrepreneurs from all over the world. In fact, according to the Dubai Department of Economic Development (DED), the number of new businesses has increased by 13% each year.
The city’s thriving sectors – from services and finance to retail and real estate – are benefiting remarkably. Its status as one of the most multinational cities in the Middle East cannot be overlooked either.
Thinking about starting a business in Dubai? You will position yourself in one of the most important economic centers in the world. Remarkably, Dubai ranks 15th in global business markets, paving the way for entrepreneurs to realize their ambitions in this “City of Gold”.
While the world offers many places to set up a business, Dubai stands out for its attractive advantages for international investors. Whether you are planning to expand an existing business or launch a new idea, Dubai’s diverse ecosystem is ready to fulfill any entrepreneurial dream.
Overall Standing
When it comes to a business-friendly atmosphere, the UAE ranks among the best in the GCC region. In recognition of its impressive status, the UAE is ranked 26th in the World Bank’s 2015 Doing Business report, beating other GCC countries such as Saudi Arabia at 49th.
It should also be noted that the UAE is ahead of several European countries, with the Netherlands in 27th place and France and Turkey in 31st and 55th place respectively. The UAE is clearly a benchmark for business excellence.
Dubai is also among the top 10 travel destinations worldwide for entrepreneurs looking to start an import or export business, according to a recent report by Germany-based moving company Movinga.
The study examined each city’s business environment, logistics network, and market accessibility for restaurants, technology startups, or import/export companies.
Dubai Expo 2020
Expo 2020 was a six-month event held from October 2021 to March 2022 in Dubai, United Arab Emirates. It was the first World’s Fair to be held in the Middle East and North Africa (MENA) region. The theme of Expo 2020 was “Connect Thinking, Shape the Future”.
The event attracted more than 25 million visitors from more than 200 countries. It was a major financial success for Dubai, generating more than $6 billion in revenue. Expo 2020 also provided a platform for companies to showcase their products and services to a global audience.
Small and medium-sized enterprises (SMEs) were particularly successful at Expo 2020. They were able to access the huge visitor market and generate significant sales. Many companies also used the event to network with potential partners and investors.
Solid Health And Education Frameworks
A fact that is often overlooked: every resident of the United Arab Emirates is required to have health insurance. The country is home to world-renowned healthcare institutions such as the Cleveland Clinic.
In addition, the United Arab Emirates is a beacon in education with a literacy rate of 92.5%. Renowned international universities such as INSEAD, MIT, and NYU have found their home here.
It Depends On The Location
The real estate mantra of “location, location, location” applies to businesses, too. Strategically located between Europe, Asia, and Africa, the United Arab Emirates occupies a large place on the world map.
With approximately 1,000 weekly flights connecting worldwide destinations, accessibility is second to none. On the one hand, China and India offer a wealth of trading opportunities and raw materials. Meanwhile, the European Union, another major trading partner, is on the other side.
First-Class Infrastructure And Facilities
The UAE government has made a significant commitment to ensuring a seamless experience for foreign investors. Their commitment is evident in the impeccable infrastructure and facilities provided, from state-of-the-art business parks to efficient transportation and consistent public services.
The UAE has a strong economy with a low tax rate, making it an attractive destination for companies of all sizes. The government also supports innovation and entrepreneurship by providing funding and resources to help businesses thrive. This has made the United Arab Emirates an important center for international trade and investment.
In addition, the government of the United Arab Emirates has taken measures to make it easier for foreign investors to obtain visas and residence permits. This has made it more attractive for companies to establish themselves in the United Arab Emirates.
In addition, the government has invested heavily in education and healthcare, providing a high quality of life for citizens and residents.
Talent Galore
It is widely recognized that people, whether skilled or unskilled, from different parts of the world, especially Pakistan, India and Southeast Asia, are attracted to the UAE job opportunities to make money.
This ensures entrepreneurs have a diverse and reliable talent pool. In addition, the attractive combination of low taxes and competitive wages promotes a favorable environment for both employers and employees.
Attractive Tax Advantages
Navigating the tax landscape of a foreign country can be a daunting task. However, the UAE makes this easy with its diverse corporate structures and tax classifications. A particular feature of free trade zones is that they offer companies 100% tax breaks.
So if you want to keep your company profits tax-free, you should consider registering with these free zones.
Here are some of the benefits of registering a company in a UAE Free Zone:
- 30% discount on international film and television production costs
- No import or export duties
- 100% foreign ownership
- 100% Profit Repatriation
- Simple and fast registration process
- First class infrastructure and facilities
- Strategic location and access to the main markets
- Seamless connectivity to global corporate networks
- Competitive operating costs
- Highly qualified and experienced workforce
- Business-friendly government policies and regulations
If you are looking to start or grow your business in a favorable tax environment, the UAE is a great option. With its diverse corporate structures and tax classifications, the UAE offers companies a range of benefits including 100% tax breaks.
Extensive Opportunities For Company Participation
Traditionally, foreign direct investment (FDI) restricted foreign investors to own a maximum of 49% of the company’s shares, while the local partner owned 51%. However, some structures in the UAE offer foreign entrepreneurs the opportunity to own 100% of their company.
A Prosperous Economy
The United Arab Emirates has the most advanced business environment in the Gulf region. Over the past four decades, the country has developed a prosperous economy with an open market, high per capita income, and a steady annual trade surplus. Companies from all over the world are aware of this potential and are moving to the United Arab Emirates to start offshore projects.
The business landscape of the UAE is diverse and dynamic, ranging from innovative startups to multi-billion dollar corporations.
The emirate’s financial stability and prosperity act as a magnet, attracting significant foreign investment and further boosting its strong economy.
Transparent Legal Procedures
The UAE government has streamlined its legal framework to attract foreign investors and boost its economy. The penal laws remain the same, but different rules apply to foreigners.
Bureaucratic hurdles have been reduced to a minimum, ensuring fast and efficient legal procedures. Licensing and registration are easy and often require minimal paperwork, making it easy to start a business.
Establishing A Company in Dubai
When considering starting a business in Dubai, it is important to determine the best corporate structure for your needs.
Many experts recommend locating in one of Dubai’s free zones, where foreign investors can enjoy the privilege of 100 percent ownership. However, a Dubai Limited Company (Dubai LLC) limits foreign shareholder ownership to a maximum of 49%, with the remaining 51% being held by a UAE national.
In rare cases, the government may permit a foreign corporation to own an LLC outright.
If you are planning to incorporate a company in a Dubai Free Zone, you must provide the local authorities with the following documents:
A comprehensive business plan that includes:
- An overview of your planned business operations
- A breakdown of your workforce, both by number and by role
- The amount of your investment
- Information about your suppliers
- An overview of the expectations of your target customers
- A lease and proof of your share capital contribution.
If you are short of money, no need to worry as you can also apply for a business loan in Dubai to start your business.
Also Read: Best Home Internet Plan in Dubai