Top 12 Benefits of Starting a Business in Dubai: Dubai has undergone a miraculous transformation in the past 3 to 4 decades. A region that was limited to localized trading activities got transformed into one of the most happening trading hubs of the world in very
At present Dubai is not just a business or trading hub – Dubai has become one of the most preferred tourist destinations too
In this article, we shall go through the top 12 benefits of starting a business in Dubai.
Benefits of Starting a Business in Dubai
Dubai is one of the fastest-growing middle east cities in the world. The following are some of the major benefits of setting up a business in Dubai.
1. The strategic location of Dubai
The strategic geographical location of Dubai is a natural advantage and yes – Dubai took maximum advantage of the same. Dubai serves as a gateway or connecting link between the west and the east. From a western perspective, Dubai is considered as the gateway to both the continents of Africa and Asia.
The strategic location of Dubai, allows it to follow a centralized time zone that merges the business timings of the west and the east. This centralized time zone system – known as the Gulf Standard Time (GST+4) is followed in Dubai. This unique time zone helps Dubai coordinate the trading activities with the west and the east very efficiently.
2. Connectivity and infrastructure
Again, the connectivity factor is linked to the geographical location of Dubai. Dubai is an airport and seaport hub that facilitates the large chunk of trading activities of the Middle East and Asia. In the past decade, Dubai has experienced a huge increase in the flow of both cargo and passengers. During the 1st first half of 2019, passenger flow of 41.3 million was reported in Dubai International Airport – one of the busiest in the world.
All major airlines of the world operate in Dubai due to its unique geographical location. Emirate Airlines, FlyDubai – two major airlines that undertake airline service in Dubai offering world-class service to millions of passengers. Another worth-mentioning aspect related to airline connectivity is that – you get access to the 2/3 of the total world population within 8 hours of fly time.
Dubai has a world-class infrastructure when it comes to seaports. Ports like Jebel Ali, Port Rashid and Al-Hamriya handle the containers, cargo and passenger flow of the region. Jebel Ali port – the largest seaport in the middle east is also the 9th largest container port in the world. The port houses 63 berths and yes it’s really huge.
3. Multicultural, expatriate population
One of the 7 Emirates of the UAE (United Arab Emirates), Dubai is the second largest Emirates next to Abu Dhabi. The Emirate of Dubai is spread around 4,114 square kilometers. Based on the 2016 statistics, the estimated population of Dubai is more than 2.5 million. Even if Abu Dhabi has the largest area, Dubai is the most populous Emirate in the UAE. Expatriates of over 200 nationalities reside in the UAE.
The Emirati population constitutes roughly 20% of the total population of the UAE. This means that 4 out of 5 persons that you meet or interact in the UAE are expats from other countries. Hence Dubai and UAE as a whole is a multicultural society.
4. Political stability
Political stability is one of the most important parameters that promote economic development and growth. UAE is a role model in this aspect. UAE follows a constitutional monarchy since its formation and as a nation, the Emirates is successful in maintaining the status-quo till present. The architects of the UAE firmly believed in virtues like peace and justice. Even now the UAE government believes and propagates the same virtues.
5. Diverse Economy
Dubai is no longer dependent on traditional petroleum or natural gas reserves. The present Dubai is a rich, diversified economy that thrives on multiple sectors like innovation, technology, trade, tourism, transportation, service, logistics
6. Lower crime rates
Being a multicultural society, the UAE officials give prime consideration to the virtue of tolerance. The crime rates are low compared to many other developed countries. Better living standards and infrastructure developments also contribute toward social stability.
7. Ease of Doing Business
The 2019 Ease of Doing Business score of UAE is 81.28. Emirates secures the 11th rank in the Ease of Doing Business world ranking.
8. Free Zones business
In order to facilitate foreign investments, the UAE government has allotted certain geographical regions as Freezones. There are more than 40, full-fledged, business-friendly free zones allotted to the investors that cater to the diverse business requirements. Freezone company formation offers 100% foreign ownership to the investors.
Apart from Freezones, investors can set up businesses in the UAE mainland too. These are regions that are excluded from the free zone regions. Both mainland and free zone companies are exempted from income tax. This tax exemption serves as one of the biggest motivations for business owners.
9. Mainland business
Mainland business provides the investor with the opportunity or right to trade without any geographical barriers. Investors can make use of the mainland business opportunity to do business transactions anywhere in the UAE or abroad.
10. Pro-business government
A pro-business UAE government promotes business endeavours of all types and structure. The Department of Economic Development or DED is in charge of implementing the economic policy of the UAE government. Owing to the ease of doing business in UAE, the Emirates has witnessed a huge number of business ventures in recent years.
11. Manpower obtainability
Investors can take the leverage of liberal UAE labour laws and conduct hassle-free recruitment of workforces from all over the world. The recruitment can be done in an affordable manner too.
12. Open economy
Effective regulatory measures forbid monopolies and