Reasons To Start Your Own Business In The UAE
Why Choose Dubai As An Investment Location?
The Dubai economy enjoys a competitive combination of cost, market and environmental advantages that create an ideal and attractive investment climate for local and expatriate businesses alike. In fact, these advantages not only rank Dubai as the Arabian Gulf’s leading multi-purpose business center and regional hub city, but they place it at the forefront of the globe’s, dynamic and emerging market economies.
Dubai, with its ancient commercial and seafaring traditions, has long been recognized as the Middle East region’s leading trading hub and has emerged as its key re-export center. In more recent years, the Emirate has become a major venue for a number of growing, profitable industries and activities .
Political And Economic Stability: Dubai is part of the UAE which is a low-crime and politically-stable country. Also, the UAE enjoys financial and monetary stability. Its well-developed, sophisticated banking system features ,extensive credit facilities and ample liquidity. The Emirate’s emerging capital markets are built on a basis of leading-edge technologies and sound regulatory systems. The government has a long, consistent commitment to pro-business, liberal economic policies including the protection of intellectual property rights. The UAE benefits from stable and harmonious industrial relations. Finally, there is a well defined, sound legal framework for business and a clear set of ownership rules. Foreigners are permitted ownership rights of up to 49% for limited liability companies established within the Emirate of Dubai and up to 100% for professional companies, branches and representative offices of foreign companies and free zones enterprises. All of these factors reflect positively in Dubai’s being assigned an investment grade rating for fixed income investment by Moody’s Investors Service.
Large, available workforce
One of the biggest struggles when starting up any new enterprise is finding the right people to work with. Dubai wins again. Its liberal and cost-effective labour laws, along with its desirable working location, make it both easy and – perhaps most importantly – rather affordable, to recruit employees from almost anywhere in the world. The ease at which expatriate workers – who make up a staggering 90% of the city’s labour force – can enter and exit the UAE also makes it easier for businesses .
Ease of starting your own business
New markets, new consumers, the rise of Internet technology – Dubai is a land of booming opportunities.
A recent survey by HSBC revealed that Dubai is ranked second-best city in the world after Singapore for expats looking to start a business. The survey highlights that the UAE’s entrepreneurial environment, job prospects and better salaries as primary factors attracting expats from across the world.
“Despite the volatility in the global economy and insecurity in job markets, the UAE’s diverse business landscape and its position as a hub in the Middle East means that it continues to be an attractive destination for expats from across the world,” .
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:
- Personal income tax;
- Capital gains tax;
- Value-added tax;
- Withholding tax;
- Corporate tax.
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.
If you have 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
- you can get visas for other countries more easily as a resident in the UAE.
Logistics and Infrastructure
Dubai enjoys the position of a significant player in international trading and transport logistics. It has the advantage of its inherent strategic location on the globe. Dubai is in the middle of far east and Europe and situated at the crossroad of international trade between east and west. Due to its geographical location, Dubai is considered to be the gateway to the world’s most progressive markets, including Africa, India and china.
Dubai offers immense facilities in air transportation and air cargo. Dubai has two airports Dubai international airport and Dubai World Central (Al Maktoum International Airport). Dubai international airport is one of the busiest international airports in the world. It has world’s largest cargo hub known as cargo village, most of the cargos for Asia & Africa are using this cargo village. Dubai world central is operational but it is still in developing phase. DWC is located in Dubai south district which is also future home for expo 2020 site. Once completed and start operation in full capacity it will become world’s largest airport and multi-model logistic hub with the capacity of 160 million passengers and 12 million tons of cargo per year. DWC is an integrated project of six clustered zones Dubai logistic city, commercial city, residential city, aviation city and the golf city. Dubai logistics city is one of the largest industrial submarkets under construction. According to the latest research from cluttons, international real estate consultancy it has already attracted a number of high-profile players including integrated national logistics, emirates, sky cargo, Aramex etc. DWC has one more speciality. It has world’s only 7- star airport terminal for private aviation.
Dubai’s Jebel Ali port is the largest port in the middle east, it is likely to become the biggest container port in the world. The government of Dubai and DP world are working on the expansion plan of Jebel Ali port. According to the official statement, the current plan will multiply the total capacity of Jebel Ali port by seven, making it world’s biggest port, surpassing the ports of shanghai and Singapore. India and china are using it as a logistical hub for their African ventures. Due to its strategic location port is providing market access over 2 billion people across six continents. It is a gateway for over 90 shipping services connecting 140 ports in the world. The strategic geographical location and facilities made it the busiest port in the middle east, according to a research report revealed by arabiansupplychain.com based on statics of 2015. Port Jebel Ali is linked to Dubai’s express-way system and to the Dubai international airport cargo village. The rapid transportation facilities available in Dubai made it possible to achieve ship-air and air-ship connectivity in four hours. Dubai has two more ports Port Rashid and Al hamriya.
Dubai has one of the best road infrastructures in the world. According to world economic forum’s travel and tourism report (2013), the UAE has been rated second best in the quality of roads. Dubai is known for wide roads with disciplined traffic and centralised monitoring system by high-tech cameras and radar. The Dubai metro is world’s largest automated driverless train system, with more than 70 Km of magnetic tracks. The government is working on an extension of the metro route and connecting metro to expo 2020 site. Soon Dubai will enjoy connectivity with 1200 km long Etihad railway network. This network will connect all major population, trade and industrial zones across UAE. This will fulfil freight & passenger needs. Dubai will be connected with GCC rail network also. GCC railway is 2,117 km long rail network this will connect all six countries of gulf corporation counsel. Transportation of goods will become easy for UAE, Saudi Arab, Kuwait, Qatar, Bahrain, Oman. The Dubai government is developing 500 Km road network and 120 multilevel interchanges by investing $ 12 billion. The development work is expected to complete before expo 2020.
Local culture and heritage
Although Arabic is official language; English is the most widely spoken language in business rooms. The company is hospitable and is ranked safe place to work.
You get a chance to enjoy the delectable local cuisine and Arabic culture in forms of art, music and architecture.
Before we conclude, we‘ll do a bonus section on major UAE cities which you can eye for a business setup.
- Dubai: It is the most cosmopolitan city in all of UAE, tourists from all over the world visit Dubai for its shopping experience.
- Abu Dhabi: Home to the richest, it is also the most planned and organized business center in UAE,
- Sharjah: Sharjah airport international freezone is a premier freezone which attracts foreign investors.
- Jebel Ali: It is a freezone on the western side of Dubai. Readymade facilities like business parks, office spaces are available for the customers.
- Fujairah: The Fujairah freezone is an upcoming one and is attracting shipping and transport companies from all over the world.
So, are you excited to start up your own venture in the UAE? If yes, then prep up your business idea and get in touch with international business consultant in UAE ,Namaccountants -who have guided thousands of business owners for successful business setup in this region.
With Namaccountant team’s international business men and local Middle Eastern exposure, you can rest assured that your business setup is taken care of.
Have more questions on how to go about?
Write to us at Info@namaccountants.com