9 Reasons Dubai Is the Perfect Haven For Businesses

 It took Dubai only 50 years to become a financial powerhouse in the Middle East and turn into one of the most prosperous cities worldwide. Aspiring entrepreneurs from all corners of the globe are now flocking to this city, taking up corporate incorporation and company formation offers in an attempt to build Dubai’s next big business. 

Out of the seven cities in the United Arab Emirates, a greater percentage (88%, according to one estimate) of business-savvy individuals prefer to build their startups in Dubai. It is a city that offers a variety of business and pleasure options for employers and employees alike. 

Are you in search of the best location for your startup? The following are a few reasons why foreigners love to set up shop in Dubai.

 1.  Access to Booming Economic Markets

As the economic hub in the Middle East, Dubai offers entrepreneurs opportunities to trade and work with some of the region’s developing markets. Its location in the Arabian peninsula makes it an excellent base for any company that wishes to participate in the economy of emerging markets in the Middle East, Asia, and North Africa.

 Dubai itself is a booming economic market brimming with opportunities for entrepreneurs. It’s traditionally known for its oil exports, but its economy has grown exponentially over time.

The UAE is also making a conscious effort to diversify its economy and focus on non-oil industries. This has encouraged entrepreneurs to engage in a myriad of business activities, most of which are not related to oil. 

2.  Transport Options

Dubai is easily accessible from many parts of the globe. In fact, approximately one-third of the world’s population is within four hours of air travel from Dubai. Double the travel time, and one can reach around two-thirds of the global population. 

Approximately 88 airlines operate in Dubai airport. Meanwhile, around 120 shipping lines have access to its ports. 

The many transport options and well-maintained road network also make traveling in, out and around the city easier. It also makes it easier to transport cargo, a great advantage for businesses involved in trade. 

3.  Access to Qualified Personnel

Dubai is not just for employers. People come to Dubai, UAE to start and build their careers. As a result, Dubai has a continual influx of skilled talent. Consequently, Dubai-based employers have ready access to candidates from around the globe. 

Whether companies need interns, seasoned professionals or managers, they can find what they need in Dubai. There is no limit to the industry or niche either. You can find candidates with experience from a plethora of fields, including engineering, health care, research, and more. 

The local government also makes hiring foreign talent easy for any business. The regulations on obtaining employee work permits and residence visas are clear. This makes it easier to apply, renew and cancel visas and work permits for employers and employees. 

4.  Ease of Doing Business

The UAE ranks 16th worldwide in the World Bank’s Doing Business 2020 rankings. Specifically, it placed 16th among the 190 economies evaluated on ease of doing business.

 Incidentally, Doing Business assessed Dubai to come up with its rating for the UAE. Thus, it’s fair to say the UAE’s Doing Business scores are actually Dubai’s scores. 

The UAE (specifically Dubai) dominated on ease of getting electricity, ranking first overall. It also ranked high in the following variables: 

●     3rd overall in dealing with construction permits or government approvals

●     9th overall in enforcing contracts

●     10th overall in registering property

●     13th overall in protecting minority investors

●     17th overall in starting a business 

5.  Zero to Low Taxes

Foreign entrepreneurs who plan to set up a business in Dubai also benefit from the city’s low taxes. Dubai does not charge personal income tax. 

Corporate income tax is minimal. It’s fixed at 9%, with exceptions for certain business activities, levied on any taxable corporate income above AED 375,000. Up to that threshold, the corporate income tax rate is 0%.

 The UAE has tax agreements with other territories to protect foreign investors from double taxation. It imposes low duties on imports. Free zone and offshore companies in Dubai even enjoy zero customs duties on the import and export of goods. 

6.  Free Zone Options

Foreigners can also set up their business in one of the more than 20 free zones in Dubai, including Dubai Healthcare City, Jebel Ali Free Zone and Dubai International Financial Center, among others. 

Dubai free zones provide many benefits, including highly simplified business set-up procedures and 100% profit and capital repatriation. Free zones are ideal for companies that: 

●     Wish to take advantage of Dubai’s superior logistics infrastructure, strategic location and thriving business environment

●     Want to make Dubai its base of international operations but is not selling to UAE residents and UAE mainland businesses 

7.  100% Foreign Ownership of Business

In most other cities and countries, the typical investment laws allow foreigners to own only up to 49% of a domestic company. It is different in Dubai (and the UAE). 

In Dubai free zones, foreign investors can own up to 100% of their companies. In the UAE and Dubai mainland (non-free zone locations), 100% foreign ownership is also allowed for specific economic activities. 

8.  100% Foreign Ownership of Property

Foreigners can also own property in designated freehold areas in Dubai. This is complete and absolute ownership, so foreigners who are property owners in Dubai can lease, rent or sell their properties at will. 

9.  High Standards of Living

Dubai is under constant development. Here, people can live in some of the most luxurious residential areas. Both aliens and nationals alike have access to internationally recognized educational institutions and recreational facilities. 

Security reports have ranked the city as one of the safest in the world. Local police officers are equipped with the latest technologies to help detect and prevent crime, and foreigners and locals alike can feel safe living and working in Dubai. 

Start a Business in Dubai

With all these benefits, it is not surprising that a growing number of expats and foreign investors have started to call Dubai their home. If you want to follow their example, work with a reputable business consulting company and set up your business in Dubai.