16 February, 2020
4 Reasons to Setup your Business in Dubai
The UAE, with its diverse population and vibrant business environment, is a destination for many companies to either set up or expand in the country. Dubai, in particular, is a key market often discussed and explored by companies of various sizes, and across sectors.
In 2019 alone, Dubai witnessed over 16.73 million tourists, and this was an increase of 5.1% over the preceding year. While tourism and hospitality are synonymous with Dubai, the sheer magnitude of the tourist influx is pretty mindboggling. Naturally, this presents many business opportunities for companies around the world. Ignoring a market that is this expansive could prove to be disastrous for a business.
So what is it that attracts businesses to Dubai? Why should businesses continue to look at Dubai as a lucrative option?
1.Ease of Doing Business
UAE is consistently ranked highest in the Middle East region on the global index for “ease of doing business”. Globally, the UAE ranks among the Top 12 countries (in 2019 UAE was ranked 11).
This simply means that getting your business setup, and then continuing to operate in the country is far easier than over 170 other countries around the world. More specifically, certificates of origin have been digitized leading to reduced export time, and certificates of conformity cover multiple shipments leading to reduced costs. Customs fees at 5% are the lowest in the region. Apart from such steps to boost the trade and business environment, the Government regulations are periodically eased (or even done away with in some cases) thereby reducing hassles and paperwork.
2. Social, Cultural and Geographical Advantage
Dubai is geographically at a huge advantage, thanks to its central location between the east and west. While Western nations use Dubai as a hub for the entire region, India uses Dubai as its gateway to the whole world. China utilizes Dubai as a trade hub for penetrating the African markets. Logistics, transportation, and mobility account for nearly 5% of the GDP, and is virtually a safe zone for imports and exports.
Moreover, the crime rate in Dubai is extremely low and the system is one of the best law enforcement systems globally. UAE law takes serious measures protecting intellectual property rights and trademarks and fights racism. All of that adds a sense of safety for investors. Dubai is widely regarded as one of the safest places in the world for locals and expats alike. For a city that works late and has a heavy transient population, this means a great environment for individuals and businesses.
3. Visionary Government
Apart from aiding in establishing a liberal business environment that has many tax-free zones, the Dubai Government is one of the most progressive and visionary among its peers. The Government promotes SMEs and startups through incubation, provides grants for businesses based on activity or size, periodically implements reforms to support the businesses and most importantly, conducts strict checks to maintain a high quality of service delivery. The Government is an early adopter of technology and innovation, often leading the way for many others to follow. The vision is set for the next 50 years, and the Government also has its own portal for innovation!
This gives one of the most positive and vibrant environments for startups, making it a very attractive proposition for investors.
4.Visa and Residency Rules
The Government facilitates many ways by which you may visit Dubai, or become a resident. Short term tourist visas are available through many flight services, while long term visit visas may be obtained through sponsorship by a resident of UAE. Recently, the Government ratified a cabinet resolution to launch a 5-year multiple-entry tourist visa.
Obtaining a resident status is possible through many avenues. One may get a resident visa under the category of employment or as an owner/investor of a business. Purchasing any property that is worth 1 million AED or more grants the owner a residency permit, and the UAE has lately introduced a 10-year residency visa for investors and specialists.
There are many other advantages that make UAE a solid choice for investing, like competitive power prices (Water, Electricity, and Oil) and availability of labor and competitive wages within a regulatory framework that ensures transparency between the employer and the employees. Lastly, the ability to discover new partnerships with local investors or those in the GCC area lend a phenomenal advantage to the market.
With the World Expo 2020 approaching, the Dubai market is expected to grow exponentially, having a major impact on the region and globally.
Do reach out to us for investing in a business, and we will help you with your requirements.