Dubai has quickly developed into a global business centre that attracts entrepreneurs. In fact, the Department of Economic Development (DED) of Dubai reports that the number of startups has increased by a remarkable 13% annually.
The city’s booming industries are reaping significant benefits, from trade and real estate to services and finance. Not to mention, it is one of the most multicultural cities in the Middle East.
Consider opening a business in Dubai. You would be placing yourself in one of the most important business centres on the planet. Impressively, Dubai takes the fifteenth position in the world’s commercial markets, opening the door for businesspeople to realise their goals in this “City of Gold.”
Global Position
In terms of a business-friendly environment, the UAE ranks among the best in the GCC. The World Bank’s 2015 “Doing Business” report ranked the UAE 26th, ahead of other GCC countries like Saudi Arabia, which was ranked 49th, as a nod to its impressive status.
It is also notable that the UAE outperforms a number of European nations, with the Netherlands ranking 27th and France and Turkey following closely behind at 31st and 55th, respectively. It’s obvious that the UAE is leading the way in business excellence.
According to a recent report by the German-based relocation company Movinga, Dubai is also among the top 10 locations in the world for entrepreneurs looking to start an import or export business.
Each city’s business environment, supply chain, and market accessibility for restaurants, tech startups, or import/export companies were examined in the study.
Dubai Expo 2020
From October 2021 to March 2022, Dubai, United Arab Emirates, hosted Expo 2020, a six-month-long event. The Middle East and North Africa (MENA) region hosted its first World Expo during that time period. Expo 2020 had as its slogan “Connecting Minds, Creating the Future.”
More than 25 million people from more than 200 countries attended the event. For Dubai, it was a significant economic success, bringing in over $6 billion. Additionally, Expo 2020 gave companies a stage on which to advertise their goods and services to a global clientele.
At Expo 2020, small and medium-sized businesses (SMEs) had a lot of success. They were able to take advantage of the sizable visitor market and produce sizable sales. A lot of companies also used the occasion to network with prospective investors and partners.
Strong framework for health and education
Every resident of the UAE is required to have health insurance, a fact that is frequently forgotten. The nation is home to renowned medical facilities like the Cleveland Clinic. Additionally, the UAE is a shining example of education, with a 92.5% literacy rate. Prestigious international universities like INSEAD, MIT, and NYU have made this place their home.
Accessibility is unmatched, with about 1,000 flights per week connecting to destinations around the world. On the one hand, raw materials and trade opportunities abound in China and India. On the other flank is the European Union, another significant trading partner.
Outstanding facilities and infrastructure
The UAE government has significantly committed to making sure that foreign investors have a seamless experience. Their dedication is demonstrated by the first-rate infrastructure and amenities offered, including cutting-edge business parks, effective transport, and reliable utilities.
The UAE is a desirable location for businesses of all sizes due to its robust economy and low tax rate. In order to aid businesses in succeeding, the government also supports innovation and entrepreneurship by providing funding and resources. As a result, the UAE has grown to be a significant centre for global trade and investment.
Everything depends on the setting.
For businesses, the real estate maxim “location, location, location” holds true. The UAE is located in a prime location on the world map because of its advantageous location between Europe, Asia, and Africa.
In addition to the aforementioned measures, the UAE government has also taken action to make it simpler for foreign investors to obtain visas and residency permits. Businesses now find it more appealing to establish operations in the UAE as a result of this. The government has also made significant investments in healthcare and education, giving its citizens and residents a high standard of living.
A wealth of talent
It is well known that people from many nations, both skilled and unskilled, are attracted to the lucrative job opportunities in the UAE, particularly those from Pakistan, India, and Southeast Asia.
This guarantees a trustworthy and varied talent pool for business owners. Additionally, the region’s alluring combination of low taxes and high wages creates a situation where both employers and employees benefit.
Enticing tax advantages
It can be difficult to navigate a foreign country’s tax system. With its various business structures and tax classifications, the UAE, though, makes this simpler. In particular, the free zones stand out because they grant businesses complete tax exemptions.
Therefore, take into account registering within these free zones if you’re keen on keeping your business profits tax-free.
Here are some advantages to setting up a company in an Emirati-free zone:
30% off of international production costs for films and TV shows
Duty-free imports and exports
Completely foreign ownership
Repatriation of profits in full
Simple and quick registration procedure
world-class facilities and infrastructure
convenient setting and quick access to important markets
seamless access to international trade networks
affordable operating costs
highly qualified and knowledgeable workforce
government regulations and policies that support business
The UAE is a fantastic option if you’re looking to launch or grow your business in a tax-friendly environment. The UAE provides businesses with a number of benefits, including 100% tax exemptions, thanks to its diverse business structures and tax classifications.
Complete Options for Business Ownership
Historically, foreign investors were only permitted to own up to 49% of the company’s shares under foreign direct investment (FDI), with the local partner owning the remaining 51%. However, certain laws and regulations in the UAE give foreign business owners the chance to own their entire company.
A Successful Economy
The trade environment in the Gulf is most advanced in the UAE. It has created a thriving economy over the previous four decades with an open market, a high per capita income, and an ongoing annual trade surplus. Due to this potential, companies from around the world are moving to the UAE to start offshore ventures.
The business environment in the UAE is varied and vibrant, encompassing both cutting-edge startups and multibillion-dollar corporations.
The emirate’s wealth and financial stability serve as a magnet, drawing substantial foreign investment and bolstering its already robust economy.
Transparency in the legal system
To entice foreign investors and strengthen its economy, the UAE government has simplified its legal system. Criminal laws are unchanged, but there are different rules for visitors.
A minimum amount of bureaucratic red tape ensures quick and effective legal processes. Business startups are made easier by the ease of licencing and registration procedures, which frequently call for little in the way of paperwork.
A Business in Dubai Can Be Started
Choosing the ideal company structure for your requirements is crucial if you’re thinking about starting a business in Dubai.
A lot of experts advise establishing a business in one of Dubai’s free zones, where foreign investors can benefit from 100% ownership. A Dubai Limited Liability Company (Dubai LLC), on the other hand, limits foreign investors to a maximum of 49% ownership, with the remaining 51% being held by a UAE national.
The government may, in exceptional circumstances, allow a foreign entity to fully own an LLC.
The following documentation must be given to the local government authorities if you are thinking about starting a business in a Dubai free zone:
A thorough business plan that includes: A description of your intended business operations
a breakdown of your staff, including their numbers and job titles
Amount of your investment
Information about your suppliers
insights into the expectations of your target market
A copy of the lease and documentation of your share capital deposit.
You don’t have to worry if you lack the money to launch your venture because you can also apply for a business loan in Dubai. To read our comprehensive guide to obtaining a business loan in Dubai, click here.
