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The significance of Dubai as a business hub is indisputable. With its reputable status for global aviation and its vast coastline, Dubai has become a key central point for trade and commerce; it is known for its international air cargo and is home to two of the world’s largest ports. Holding a strategic location, Dubai brings together the East & the West both geographically and culturally. Over the past four decades, Dubai has evolved into a leading business destination, nurturing innovators of the future and providing a gateway to fast-growing and emerging markets.
Certainly, the possibility of setting up or taking your business to Dubai is an opportunity on an entirely new international level. Here are the top reasons why you should consider starting business in Dubai:
Strategic Location
By doing business in Dubai, you will have direct access to the markets of the Middle East, Asia, Africa and Europe. Within close reach to the Asian giants, China and India, business owners in Dubai will experience an influx of significant trading opportunities.
With around 1000 weekly flights to countries worldwide, Dubai is strategically connected to the rest of the world with its geographical location making it easier to commence international trade. 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.
Close connections to sea and air transports mean that Dubai relates to all the leading international transport hubs, allowing for the possibility of delivering goods from and into any part of the world.
Pro-Business Governments
The government of Dubai is inclusive and supportive of all sizes of businesses, announcing incentives for types in order to support all sectors.
Dubai’s Department of Economic Development (DED) is known for transforming Dubai’s economic agenda. The department’s vision is to improve the economy and provide support needed to create a holistic investment atmosphere for both international and local investors.
The government’s aim is to drive the economy through foreign investments, revising their legal framework particularly for foreign investors who are willing to start a business. In Dubai, the government has established a climate of support to empower businesses, helping them to succeed and achieve long-term sustainability.
Legislation promotes the following:
- No corporate taxes on the gained profits for legal entities.
- No income taxation for business owners and companies’ employees.
- Simplified financial reporting system – no need to carry out annual audit or the simplified reporting.
- Protection of the interests of the foreign business owners
- 10-year residence to investors
Together with the above, Dubai offers opportunities for further creation and development of the successful business. The minimal taxation, minimal crime rate, minimal crime rate, stability of the current national currency, broad proposals for residential and commercial properties for their purchasing and renting, and the perfectly organised infrastructure – all this makes Dubai very attractive for the setting up of a new business or expanding the existing one.
Infrastructure and amenities
Dubai has one of the best infrastructural facilities in the world, be it the road networks, telecommunications, ports and airports. The government has left no stone unturned in ensuring the foreign investors face absolutely no troubles in running their businesses. This includes business parks, office spaces, warehousing, transportation, e-connectivity and utilities.
Offshore Companies
Registration of offshore companies is also applicable In Dubai. For such companies, they can act as the holders of the local companies and to purchase real estate within the country, and to carry on almost any business outside Dubai. These companies are also characterised favourably by the price of registration and renewal and by the absence of requirements on financial reporting
Manpower availability and workforce
It is known that both skilled and unskilled workers move to Dubai in search of work from all over the world, especially India and other southeastern nations. This is because business owners need not to have to worry about manpower to run their businesses in Dubai. Since the taxes are low and wages are high, it is a very favorable environment for both the employers and the employees.
Incentives for young talent have also been introduced int the form of New five of 10-year student visas being introduced to enable students to stay and find work once they have graduated. Other initiatives include Expo 2020’s Youth Connect scheme, which aims to encourage young people to become ‘the innovators and thought leaders of tomorrow
Local customers and business etiquette
The culture of Dubai is rooted in Islamic tradition, courtesy and hospitality accounting as an important virtue. Business in Dubai is mostly conducted in person, building relationships and mutual trust within any business interaction.
Despite its rapid economic development in recent years, Dubai has remained humble to its heritage, offering a society inclusive for all.
Free Zones Business
To attract foreign investment and empower the economy, Free Zones have been set up in Dubai, that reward foreign nationals with lucrative incentives for setting up their business in Dubai. There are more than 30 Free Zones operating currently in Dubai.
Factors of a Free Zone
- Full tax exemption; no corporate and personal income taxes
- Total absence of the customs, duties and fees.
- Possibility of the 100% foreign participation in the share capital of the company
- Free export of currency from the emirates to other countries (1000% repatriation of periods and capital)
- Availability of the entire required infrastructure – premises, land, connections, roads etc.
Business setup in Dubai brings a sea of opportunities for networking, collaborating and extensive growth in the business. The appealing tax regime and many incentives offered, listed above, make Dubai the most preferred nation by an investor for company formation.
Other Incentives
Free Zones also offer the following Licenses as an incentive to joining:
- General Trading Activities – one can deal with the trading of all types of goods, with an expansion on a few banned products which require special approval with this license
- Trading License – this type of license, if acquired, allows one to carry out trading activities like importing and exporting, buying and selling of a limited number of commodities.
- Industrial License – a company carrying out manufacturing, packaging and processing activities after obtaining this license.
- Service License – companies that want to deal with activities such as accountancy and consulting can acquire this license.
Examples of Free Zones in Dubai
There are many Free Zones that you can choose from which are suited for your needs. With the 10-year residency law and changes to UAE company ownership law coming into effect this year, now is the perfect time for foreign business owners to register and operate as a Free Zone company in the city.
Although the Free Zone is specific to your business needs, we have selected a few notable Free Zones below to give you an idea of what to expect when researching the right fit for you.
Full name
DIFC – Dubai International Financial Centre
Summary
DIFC is an onshore financial centre strategically located providing a secure and efficient platform for businesses and financial institutions to reach into and out of the emerging markets of the region
What can they offer you?
- 100% ownership
- Common Law framework, administered by an independent and highly regarded regulator
- No restriction on capital repatriation and benefit from no currency exchange controls in the US-dollar denominated jurisdiction
- Independent Regulatory Environment – DFSA grants
- licenses and regulates the activities of finance services conducted through DIFC.
- Tax efficiencies – 40-year guarantee of zero taxes on corporate income and profits
Full name
ADGM – Abu Dhabi Global Market
Summary
Abu Dhabi Global Market is award-winning international financial centre and Free Zone strategically located in the capital of the United Arab Emirates, with a mission to promote economic and financial sector growth through a world-class innovative Financial Centre.
What can they offer you?
- Efficient process and procedures
- Fully digital application process
- Support with visas and government services
- Modern infrastructure and global connectivity
- Legislation and regulations
- Legal certainty due to direct applicable of English common law
- An independent jurisdiction with its own civil and commercial laws
- Independent ADGM courts
- Ownership and Tax environment
- 100% ownership
- ADGM is a tax friendly environment, with 0% direct tax
- No restrictions on repatriation of profits
- Growing number of double tax treaties
Full name
DMCC – Dubai Multi Commodities Centre
Summary
DMCC is the dedicated Global Centre for more than 18,000 businesses from a wide range of industries and sectors, as diverse as energy and financial services to diamonds, gold and base metals.
What can they offer you?
- 0% Personal and Corporate Income Tax
- Thriving Business Centre, network with 18,000+ members, from 180+ countries and 20+ business sectors
- Live and work in one vibrant community
- 100% business ownership and capital repatriations
- Strategic Location
- Flexible solutions
- Online portal for all services
Full name
RAKEZ – Ras Al Khaimah
Summary
RAK FTZ offers lower-cost industrial land for construction in a wide range of sizes with close proximity to seaports and airports as well as easy access to Dubai.
What can they offer you?
- Free zone and non-free zone entity formations
- 100 per cent foreign ownership
- Fast and efficient business set up process
- Wide ranging business and industrial facilities
- Provision to build on-site staff and labour accommodations
- One stop shops for all government services
- Self-service client portal
- Accessibility via an internal spread of regional offices
- Easy access to markets across MENA counties (Middle Eastern/North Africa)
- access to high-quality yet affordable housing, shopping malls, premier educational institutions, and advanced medical facilities.
How Berkeley Rowe can assist
If you are considering setting up, moving or expanding your business to Dubai, there is nothing more beneficial than discussing your thoughts with a team that has recently undergone the exact same transition.
Speaking from experience, the decision to open a new office is reflective of our strong growth which has enabled us to begin further expanding our international presence, through the Middle East, a decision that was heavily made with the above in mind.
The new office is in The One Tower, situated near the Palm Jumeirah and we will ensure that our proficient services and expertise are available to you in our offices in London, New York and Dubai.