For the last four decades, Dubai has progressed itself from being just a local trading community into one of the most remarkable and successful economy of the world. Today it is known as global trading hub and provides investment opportunities to foreign investors in many sectors of its economy such as trading, real-estate, construction, logistics, tourism, hospitality and many more. World’s most leading companies have their offices in Dubai and new business setups are happening every now and then. KWSME specializes in providing best business setup in Dubai for new entrepreneurs. In this article we will shed light on 5 reasons to start business in Dubai.
1. Strategic Location
Dubai is now known as “world’s next door neighbor” due to its key strategic location. It provides access to 2.2 billion consumers of three regions i.e. Middle East, Asia and Africa. It is a city with cosmopolitan culture which provides access to world’s leading economies. 1/3rd of world’s population is within four hours fly time and 2/3rd of world’s population is within 8 hours.
2. Growing and Diverse Economy
In terms of economic performance, Dubai is growing immensely and it has been very successful in the GCC region after reducing the trade of its oil and increasing trade of non-oil high level commodities. Dubai GDP is growing at a steady rate; in 2016 it was recorded as 2.9%. The city also attracted large amount of foreign investment with FDI reaching at AED 25.5 billion in 2016. Also trade is the cornerstone of Dubai’s economy and contributes towards almost 29% of Dubai GDP.
3. Logistics and Infrastructure
Dubai provides world class infrastructure to foreign investors coming to start business in Dubai. Its roads are wide with disciplined traffic having centralized monitoring system by high technological cameras and radar system. Dubai metro is world’s largest driverless train having more than 70 km of magnetic tracks. Government is also working on connectivity with Etihad Railways which will connect trade and industrial zones across UAE and meet freight and passenger needs. Project of GCC railway is also under construction which will connect 6 countries of Gulf Cooperation Council (GCC) making transportation of goods easy.
Along with land, Dubai also provides best air transport and air cargo facilities.
It has two airports; Dubai International Airport and Dubai World Central. Dubai International Airport has world’s largest cargo hub which is called as cargo village. It is used mostly by Asian and African cargos. Dubai World Central is located on south district which is home for expo 2020 site. Expo 2020 is also considered to be source of greatest business opportunity for entrepreneurs all over the world. DWC is functioning but it is also in developing phase. Once complete, it will be world’s largest airport and multi-model logistics hub having capacity of 160 million passengers and 12 million tons cargo per year.
Dubai has three sea ports Jebel Ali port, Port Rashid and Port al-Hamriya. Jebel Ali port is the largest sea port of middle east which is also undergoing expansion after which it will become world’s largest port surpassing ports of shanghai and Singapore. Jebel Ali port is access point for over 90 shipping services which connect 140 ports of the world. It is also connected to Dubai expressway system and DWC cargo village. According to research by arabiansupplychain.com, Jebel Ali port is busiest port of Middle East.
4. Human, Energy and Financial Resources
Human Resource: Dubai has human resource from more than 200 countries. It is quite easy to get work force whether interns or professionals from any area like engineering, information technology, designing, fashion, health care, academics etc. Labors are also available in Dubai quite easily.
Energy Resource: UAE is widely known for its abundance in petroleum, natural gas, oil and petrochemical products which are all available at very economic price in Dubai. For all industrial, manufacturing and services sector, electricity is available. Dubai has never face any power outage.
Financial Resource: Dubai International Financial Center (DIFC) is Gulf’s premier financial market competing with global financial hubs like New York, London and Singapore. DIFC is preferred location for investors, financiers and accountants.
5. International Trade Opportunities
Dubai is a prominent city in terms of import and export business. It provides access to 1.5 billion people within 3000km range. According to Dubai Customs, foreign trade of Dubai in 2016 amounted to AED billion 1,276 thus sustaining the position of trade as cornerstone of Dubai’s economy.
Dubai hosts 4 to 6 trade shows or international exhibitions every month. Participation in these events will provide people with the opportunity to network with global companies and make strong connections.
According to Dubai Chamber of Commerce report, a record number of 26,707 new business licenses have been issued by it. There is 9% increase in year-on-year membership in Dubai Chamber of Commerce. The growing numbers indicate that Dubai is an ideal investment destination for global entrepreneurs.
General Benefits for Businesses
The general business benefits that government regulations provide to businessmen include,
- No corporate taxation
- Low import duty
- Free Trade Agreements of UAE
- Availability of free zones in which investor can form free zone company which grants him complete business ownership
Dubai is home to more than 200 nationalities. It welcomes people from all backgrounds and faiths. The relaxed environment, cosmopolitan lifestyle, minimal crime rate, high quality accommodation and wide range of recreational activities make it an ideal place to live. If you are a foreign investor here with the intent to start new business in Dubai, KWSME will greatly help you fulfill your purpose. We provide all services related to new business formation. Contact our agents for more information.