Dubai remains as a preferred investment destination for businesses worldwide to have access to its established and local markets. Year on year increase of over 11% in the growth percentage of Dubai trade reinforces the fact that this city is International Trade Hub of Asia, Africa and Middle East due to its strategic geopolitical location.
Trade contributes approximately 28.4% towards Dubai GDP. According to a Macro Strategy Report by Dubai NBD, it is the “nerve center of trade” in Middle East because of its world class aviation infrastructure and established seaport network. The government also encourages foreign investment by providing competitive business regulatory environment and free economic zones with special benefits in terms of investment and trade.
According to World Bank’s Ease of Doing Business Report, Dubai ranked at 26th position (versus 34th in 2016). This position is supported by the fact that 56% of multinational companies want to have their business presence in Dubai.
Trading market of Dubai is ranked 12th in terms of providing import and export opportunities. Dubai also secured 16th position in Knight Frank’s Global City Wealth Index 2016. Government is always initiating new projects such as Dubai Future Accelerators program which will focus on technological innovation and large scale developmental projects such as Dubai Wholesale City which is expected to attract investment of US 8$ billion.
Top Trade Partners
China was UAE’s largest trade partner in 2016 and it is expected that bilateral trade between China and UAE will rise to US$ 80 billion in 2018. India is the second largest UAE trade partner with non-oil bilateral trade of US$ 25.6 billion. Both these countries are increasing their presence in Dubai by signing more strategic projects to foster trade.
Easy Import/Export Procedures
Import and export procedures in Dubai vary according to the area and the mode used for trade of commodities. Be it free zone or mainland business, Dubai government has made the licensing, registration and approval procedures extremely convenient for entrepreneurs. In order to start this business in Dubai, you must have valid trade license issued by Dubai license issuing authority and be registered in Customs Department.
Trade Opportunities in Dubai
Starting an import/export business in Dubai is a profitable venture. The environment for international trade in Dubai as shown by above figures is growing fast with various opportunities can be undertaken with multiple industries. We have listed down some potential import and export business options for you if you are looking to explore trade sector in Dubai.
- Online importation: For example alibaba.com and aliexpress.com are popular websites who deal with online trading. Make your own website, take orders and payment online and ship product to provided address. The startup capital of this business will be less and the business will be profitable as people all over the world have access to internet and are inclined towards online purchasing.
- Import/export agent: Trade agent can be a person or company who sends and receives products to and from other countries. In order to start this business you must be aware of currency transactions and import and export laws and policies by the government.
- Freight Brokerage Company: It performs as an intermediary between shipping and client companies who needs freight brokerage services. Freight brokerage companies are also known as clearing and forwarding agents. You can make lot of money in this business.
- Import/export of used cars: With technological innovation, new vehicles are being manufactured every now and then so people want to buy new vehicles and need to dispose of their old cars. You can convert this buying and selling into a lucrative business.
- Distribution and Warehousing: Distribution and warehousing companies act as warehouse, shipping and receiving agent for many different companies. You will need huge amount of investment capital and will have to perform lots of research for this venture. Having proper organizational skills, careful planning and execution can help you earn huge amount of profits in a short amount of time. There are various free zones in Dubai where you can setup your business.
Dubai Trade Law
Dubai trade laws and regulations are formulated in a way to provide a conclusive environment for trade, encourage competition as well as to secure the rights and interests of investors. There are numerous tax benefits, open door policy and being a member of GAFTA; trading companies have benefits among GCC countries.
If you want to start import and export business in Dubai and need information regarding trading activities in Dubai, license fee or registration procedure for business setup, contact KWSME business setup. We provide complete business formation services to all industries including setup of trade companies in Dubai and other parts of UAE.