In several sectors of the economy, such as commerce, import, export, logistics, tourism, hospitality, event management, financial services, construction, and so on, the UAE has transformed itself into a worldwide trading hub and ultimate investment destination. Many businesses choose or wish to do business in the United Arab Emirates for a variety of reasons. Here are the top ten reasons why you should do business in Dubai.
Reason Why to Choose Dubai for Business
Here are few reasons why Dubai is a major Business hub: -
Excellent location
Dubai is a good location for numerous business activities, including international trading, import and export, logistics, tourism, hospitality, event management, and so on, due to its strategic location between Europe, Asia, and Africa. Dubai is situated in the midst of the United Arab Emirates' 400-mile-long coast. It has access to both the sea and one of the world's major airports, allowing Dubai to facilitate goods movement between the East and the West. As a result, Dubai has access to 2.5 billion consumers across the Gulf, Africa, Asia, the Commonwealth of Independent States, and Europe.
There is No Taxation
In general, the UAE's economy is thought to be the most free and diverse in the region. With the exception of international bank branches, hotels, and significant oil and gas corporations, practically all forms of business activity in Dubai are tax-free. In Dubai, the following taxes do not apply:
- Personal income tax.
- Capital gains tax.
- Value-added tax.
- Withholding tax.
- Corporate tax.
Secure Environment to live and Conduct business
One of Dubai's distinguishing characteristics is its safety and well-being, as it is one of the safest cities on the planet. Dubai has one of the lowest crime rates in the world. Murder, kidnapping, rape, and physical assault account for 0.5 to 1 for every 100,000 people, compared to the global average of 6 to 8 for every 100,000. Furthermore, the UAE is regarded as one of the most politically stable countries in the Middle East. Security and political stability are two of the most important elements that have attracted a large number of international investments and businesses to the United Arab Emirates.
Visa for Residency
You and your family members, and your expatriate employees will be eligible for a UAE Residency Visa if you establish a business in Dubai or the other Emirates of the UAE in general. You can open a current account in UAE banks, lease an apartment for a long period of time, enter and exit the UAE several times, and receive visas for other countries, including Schengen countries, more easily if you have a UAE residency visa.
Dubai has several free zones
A freezone is a designated tax-free area in Dubai where foreigners can set up shop and conduct business without having to collaborate with a local Emirati partner or agency. Each Free Zone is unique and offers licenses in a variety of industries. There is a Free Zone for healthcare providers (Dubai Healthcare City or DHCC), a Free Zone for educational and training institutions (Dubai Knowledge Village), a Free Zone for media companies (Dubai Media City), a Free Zone for financial institutions and services providers (Dubai International Financial Center or DIFC), and so on. In Dubai alone, there are more than 20 Free Zones in operation.
Capital and Profits are fully Repatriated
The repatriation of cash and profits is unrestricted in Dubai. Many enterprises, however, prefer to keep their money in the UAE due to the country's tax-free status. Furthermore, there is no foreign exchange regulation, and the US Dollar and the UAE Dirham have a steady exchange rate (US$1.00=AED 3.678).
Infrastructure
If you're beginning a business in Dubai, you won't have to worry about finding an office, a retail store, a manufacturing facility, or a warehouse because everything is already set up and ready to go. During the previous few decades, new and high-quality residential, tourism, industrial, and commercial facilities have been created quickly and on a large scale. In addition, new highways, a more convenient public transportation system, and a new airport are being built. According to the World Economic Forum's Travel and Tourism Competitiveness Report, the UAE's infrastructure is among the best in the world. The country was ranked second in terms of road quality, third in terms of air transport quality, sixth in terms of port infrastructure, and eighth in terms of ground transportation network.
Airports and seaports
Dubai is home to the region's largest seaport (Jabal Ali Port) and airport (Dubai International Airport). You won't have any problems with international freight because it's simple to bring goods to Dubai from anywhere in the globe, and it's also simple to transport goods from Dubai to anywhere in the world via sea, land, and air.
Multinational Corporations
Many well-known international corporations maintain regional offices in Dubai, including Microsoft, LG Electronics, HP, Oracle, Nokia, Sony, Boeing, HSBC, Royal Bank of Scotland, Shell, Emirates Airlines, Proctor & Gamble, Adidas, and BBC World. Many internationally renowned universities, including American University, Michigan State University, Rochester Institute of Technology, Wollongong University, London School of Economics, London School of Business, and Hilt International Business School, have campuses in Dubai.
Living Conditions
Last but not least, the great quality of life and living conditions available in Dubai are reasons to pick the Emirate for business. The UAE was named No. 1 in the Middle East and North Africa area for quality of life, and 15th in the world out of 160 countries. Furthermore, the United Nations Happiness Index recently classified the UAE as the world's 14th happiest country. You can be more productive and inspired by the pleasant environment around you while enjoying a good quality of life and living standards.
Conclusion
There are numerous additional reasons why Dubai has become one of the most sought-after locations for business, employment, and residence. Expatriates, who hail from approximately 200 countries throughout the world, account for nearly 90% of Dubai's total population. Foreigners are drawn to the Emirate for a variety of reasons, including business and investment opportunities. If you are planning to start your business in Dubai then Dhanguard can assist you in establishing your business.