The Dubai government has worked on making the business climate incredibly attractive to foreign business owners. Dubai has become an important global city and is a world power financially. Its strategic location between Europe, Asia and Africa offers great trading conditions. Here are five of the advantages associated with forming a company in Dubai.
1. Global trade hub
Dubai has a culture of open and free trading and free zones are set up specifically to serve individuals and the needs of foreign investors. These free zones offer various incentives, such as tax and duty exemptions.
Dubai Multi Commodities Center (DMCC) is one of the world’s largest free zones. The DMCC free zone hosts many multinational corporations and DMCC company formation is one of the best ways to register a business in Dubai.
Dubai’s Department of Economic Development (DED) supports the transformation of the Emirates into an innovative, diversified economy to improve productivity. It drives Dubai’s economic agenda and provides essential administration services to domestic and international businesses.
2. Favorable tax framework
Companies in Dubai free zones do not have to pay any corporate or personal income tax. They enjoy a hundred percent repatriation of their profit and capital. Those who set up in other areas only own 49% which is why most foreign companies choose to set up in the free zones.
The absence of income tax for companies and the protection of the interests of foreign business owners is a major incentive of doing business in Dubai.
The authorities want to optimize all business processes and simplify the carrying on of business to the maximum extent for all concerned. This includes simplified financial reporting systems.
3. Easy to recruit employees
Finding the right employees is never a problem in Dubai. The open border policy regarding foreign labor is a bonus for private sector companies who can offer internationally competitive wages to recruit expatriate employees. They can easily recruit employees from all over the world, thanks to these liberal labor policies.
The UAE governments across all seven emirates also continue investing heavily in training the national workforce. They want them to be able to compete in the economy. Skilled and hardworking workers are available, although they are still vastly outnumbered by foreign workers, especially in the free zones.
4. Political stability
Economic growth is reliant on political stability and the UAE is one of the most stable economies in the wider Arab region. It has a constitutional monarchy and is very successful at keeping the status quo. Since it was unified in 1971, the federation has remained stable.
The political system is inflexible and characterized by a lack of political freedom with no political parties allowed. However, there is very little upheaval even though some latent rivalries between the emirates do exist.
The leaders support economic growth and diversity and the federal government continues to improve the business environment in order to encourage foreign investment.
5. High level of infrastructure
Economic progress in the UAE has boosted the construction of commercial, residential and tourist facilities countrywide. There is also ongoing improvement of the infrastructure in terms of the development of ports, malls, airports and free zones.
The Jebel Ali Port is one of the busiest and most modern ports in the world, with 63 berths. Port Rashid is also busy and has 35 berths.
Emirates Airline is the largest airline in the Arab world. Fly Dubai is another growing airline. The tourism infrastructure includes value chain stores, traditional spice and gold souks as well as exclusive boutiques. Business owners will find a wealth of different amenities, including excellent telecommunications.