The economic development of the United Arab Emirates is open to everyone. Dubai is spearheading the drive for financial growth and industrial expansion in the UAE. Therefore, both Emirati nationals and foreigners are establishing a business in Dubai to play their part.
Largely, it is due to the UAE government’s efforts to diversify the economy from the dependency on the oil/gas sector. The public departments in the UAE are undergoing procedural reforms to facilitate this transformation. Changes in the taxation system of the UAE are embracing this corporate advancement.
UAE has been ranked as the first place to start a business back to back for three years. The 2023/2024 Global Entrepreneurship (GEM) survey is behind this tidbit. Also, it is evident from the construction of over 300 skyscrapers in the UAE.
Dubai sits on a strategic location with easy air/sea access to Europe, Asia, and Africa. As a leading financial hub for international businesses, Dubai attracts foreign entrepreneurs, and expatriate investors. Dubai offers various up-dos including presence of a diverse consumer market, with the utmost business-friendly environment.
The city, known for its wealth and giving environment, attracts both local and foreign business owners. Dubai’s rich history and huge consumer market make it an attractive choice for companies to cement their business operations. This post explores the advantages of establishing businesses in Dubai and provides valuable tips for entrepreneurs.
Some interesting facts about Dubai to know
Dubai as a desirable place for business, ranks 18th on the Global Financial Centers Index (GFCI). Several factors are enabling the global prominence of Dubai in the international economic markets. For example, business climate, state-of-the-art infrastructure, corporate competitiveness, rich human capital, financial sector development, etc.
Moreover, political stability, open culture, public sector support, and macroeconomic environment are the change drivers. These factors are turning Dubai top option for companies operating in the Middle East and the North Africa (MENA) region. Here are the amazing facts that make Dubai popular on the international business scene.
- The United Arab Emirates is drawing in foreign businesses and entrepreneurs from all over the world.
- Fully diversified and quickly growing Dubai presents countless chances for business growth, making it a great site to start a business.
- The Emirate of Dubai is the biggest and the most densely populated constituent of the UAE.
- Annually, more foreign visitors arrive at the Dubai International Airport than the ones who depart.
- The bigger Al Maktoum International Airport is serving even more visitors to Dubai, and the UAE.
- Dubai is known as the financial center of the UAE and the Gulf region.
- Burj Khalifa, the tallest structure in the world, and the longest driverless metro line are both highlights of Dubai.
- Many businesses, entrepreneurs, and investors are transforming their great aspirations into profitable reality in Dubai and across the UAE.
Top benefits of the UAE business formation in Dubai
These are the rewards of forming a business in Dubai, UAE.
- Free trade zones
- Global trade and commerce hub
- Luxurious lifestyle
- Tax incentives and strategic location
- International talent pool
- Diverse culture and equal opportunities for all
Let’s dig deeper into the plus points of opening a business in Dubai.
Free trade zones
Dubai has become a notable destination for entrepreneurs and investors, due to its rising number of free zones. These economic trade zones permit foreigners to retain 100% ownership of the company. Likewise, they can repatriate cash and profits, and avoid corporate taxes for up to 15 years.
Operating in a free zone may not feel optimal for everyone, but it is still a great option for many firms. Furthermore, there are no personal income taxes or import/export withholding tax requirements. An expert-level PRO can offer insightful advice to investors to decide wisely while conducting business in the UAE.
Global trade and commerce hub
Residing at the intersection of the important routes, the United Arab Emirates is an international trading hub. It possesses cutting-edge infrastructure, aviation, and maritime logistics facilities. UAE provides access to the commerce markets in the Middle East, Asia, Africa, and Southern/Eastern Europe.
Because of its well-known reputation, Dubai is a great place for businesses to enter these consumer markets. Dubai is a desirable location for European enterprises wishing to grow into the Middle Eastern, South Asian, and African economies. Since, both Dubai and Abu Dhabi warmly accept and encourage companies of all kinds from around the globe.
Luxurious lifestyle
Dubai is a wise choice for both foreign business owners and international workers looking for a good standard of living. Its robust infrastructure, plethora of cultural attractions, and the spiraling towers are crowd pullers. Dubai presents a distinctive opportunity for foreign entrepreneurs, investors, and workforce.
In addition, Dubai’s superior logistical capacity makes it a desirable option for attracting employees. The world’s tallest building, the Burj Khalifa and other skyscrapers make Dubai a popular choice for employee migration. Ease of doing business and high revenues empower companies in retaining workers with handsome salaries.
Tax incentives and strategic location
The advantageous Middle Eastern location and world-class airport make Dubai a top choice for companies seeking global growth. With no personal income tax and a competitive 9% corporate tax rate, Dubai mainland is appealing to multinational enterprises. Dubai features a number of free trade zones that provide taxation breaks to foreign entrepreneurs and investors.
Several economic zones near the Dubai seaport provide exemptions in customs duties to industries. Companies can have 100% foreign ownership, and can take all profits overseas. Considering everything, Dubai’s location and tax holiday in free zones make it desirable for companies doing business in the UAE.
International talent pool
Professionals from 195 countries make up the majority of the UAE’s population, which is diverse and offers a plethora of options. Because of its progressive growth and excellent quality of life, Dubai draws top-level experts from abroad. Businesses having an interest in hiring skillful resources from a wide range of talent pools, flock to Dubai and Abu Dhabi.
Dubai is home to internationally known universities that the Knowledge and Human Development Authority (KHDA) supervises. Also, several leading foreign professional and training institutes have overseas campuses in Dubai. For instance, Rochester Institute of Technology, Wollongong University, London School of Economics, American University, British University, Michigan State University, London School of Business, etc.
Diverse culture and equal opportunities for all
The UAE has a liberal society that is quite tolerant of different lifestyles, and its culture is firmly anchored in Islamic customs. The nation upholds a liberal dress code and permits immigrants to freely practice their faith, making it one of the safest in the world.
Women are not subject to discrimination and are free to work, drive, and travel alone. The UAE has economically grown quickly, yet it hasn’t lost touch with its history. Particularly, successful conversations require establishing rapport and mutual trust with Emirati counterparts and individuals who may arrange meetings.
Conclusion
The UAE offers businesses a diverse consumer market, a business-friendly environment, and tax spurs. However, business formation regulations and residency requirements vary depending on the impact. Furthermore, the idea of the specific business in Dubai has a great say in it.
You can easily navigate this complex process with the help of a professional business consultancy firm like KWS Middle East. With years of experience, their experts can provide you the knowledge and expertise to succeed in the global hub of Dubai. You avail quality business advisory services like UAE company formation, cosmetic product registration, corporate banking support, accounting, tax filing, etc.
