Why is Dubai a Global Business Village?
In this article, we will uncover top 5 reasons for Dubai’s business-friendly environment and thriving economy.
Dubai is known as the Gulf Tiger, and rightly so. The term tiger economy was coined for booming South Asian countries, but no place can own it the way Dubai does. Over the past 50 years, Dubai‘s economic growth has skyrocketed, leading to the nickname ‘Gulf Tiger.‘ Dubai‘s impressive economic growth is also akined to the Asian Tiger‘s fast-paced trajectory, which further endorses the name.
This is probably one of the biggest reasons behind Dubai‘s entrepreneurial success. The 0% tax on personal income policy of Dubai is why so many entrepreneurs chose Dubai as their business hub.
This means that individuals can enjoy 100% of their earnings without worrying about taxes, unlike other countries.
The 0% personal tax policy does raise many questions. How can a city as advanced as Dubaisurvive without any income taxes? Dubai does not impose any income taxes because of its economic strategy and historical context.
Since the discovery of black gold, i.e. oil reserves in UAE in the mid-1960s, the federal government had no incentives to impose taxes. The local governments receive enough revenue from their Emirate-owned oil companies to fund Dubai‘s advanced infrastructure and public services.
Since businesses don‘t have to pay any taxes, especially on personal income, the profit margin is considerably higher and attracts skilled professionals, investors, and entrepreneurs worldwide. It is one of the biggest benefits Dubai-based businesses can avail of.
Additionally, Dubai has a corporate tax rate of only 9% compared to America‘s 21%. The profits are enough to make anyone think of relocating to Dubai!
Moreover, there are over 30 tax–free zones in Dubai where businesses don’t have to pay taxes. These zones also offer benefits such as exemption from import and export duties,which are particularly beneficial for trading companies.
This way, businesses can enjoy and re-invest their profits, which explains Dubai’s economic growth.
Streamlined Business Processes
The government is about encouraging businesses, which is reflected clearly in its policies.
The registration and licensing procedures are pretty straightforward. This is particularly because of the free zones in the city where sponsors and taxation are not required. This makes the process comparatively simpler.
Not to mention, Dubai is a city that encourages businesses, with numerous advisory services as well as digital government services for business setup and operations. Unlike the US, businesses do not have to undergo extensive approvals from federal, state, and local governing bodies, which reduces the time and cost of business setups.
How can one forget the advantages Dubai enjoys because of its strategic location? Its location, business–friendly policies and incentives attract entrepreneurs and skilled professionals. Located at the crossroads of Europe, Asia, and Africa, this entrepreneurial city has become a prime spot for all international businesses and global interactions. It gives you access to almost 2/3rd of the world so you can stay connected with the world’s topmost manufacturers, producers, traders and consumers—-all from a single port.
Not to forget its exceptional infrastructure, such as state-of-the-art airports, road networks and ports, making it home to seamless connectivity and trade. The location of Dubai also makes exporting and importing from overseas comparatively hassle-free – talk about business opportunities!
What does a business need to thrive? Skilled employees! With low crime rates, a family-friendly atmosphere, and various infrastructural benefits, Dubai has a great quality of life.
This is why individuals from around the world are willing to relocate to Dubai, making hiring people a walk in the park for companies. That, in addition to easy visa procedures, makeshiring in Dubai a breeze.
Businesses in Dubai have 100% Foreign Ownership, meaning you can have 100% business ownership in any of Dubai‘s free zones without being a resident of Dubai. You will be retaining 100% of the company ownership with complete control over all business and financial decisions.
Dubai International Airport and Al Maktoum International Airport are among the most economically essential airports. The airports handle a heavy traffic flow, from cargo to international passengers, making Dubai a critical logistics and transit point.
Coming to ports, Jebel Ali Port is currently one of the largest and busiest ports in the world, enhancing Dubai‘s import-export activities as well as efficiently handling cargo and storage.Road and rail networks are efficient transport options that further aid the cause of being a business hub.
The city‘s robust telecommunications and innovative city initiatives like Smart Dubai aid thecountry’s business-friendliness.
Diverse Consumer Base
Dubai is a multicultural city that has further improved its access to global markets. The large and diverse population broaden the consumer base, facilitating the demand for goods and services.
This also makes room for experimentation, customization, and product differentiation, whichcan attract and meet the unique demands of different consumer segments. The diverse consumer base also allows for targeted marketing and branding efforts to build a loyal and stronger consumer base for a business.
Dubai is all about business. Hence, all of its legal practices are made to protect the well–being of businesses. Business owners in Dubai don’t have to break a sweat on intellectual property rights, contract enforcement, and dispute resolution. Four key entities contribute to this framework:
Furthermore, Dubai emphasizes public-private partnerships, fostering ongoing communication between businesses and authorities. This two-way dialogue ensures that policies are implemented effectively, streamlining the business process in the city.
Everything from Dubai‘s 0% personal tax, tax–free zones, and streamlined company setupprocesses to world-class infrastructure paved the way for economic growth and business opportunities. When these things are taken into consideration, it is no surprise that people, especially investors and entrepreneurs, want to move to Dubai to scale their businesses.
With easy resident visas and easier employee sponsoring, Dubai attracts entrepreneurs and skilled employees alike, making it one of the best business cities in the world. Its large and diverse consumer market is a cherry on top that helps your business thrive as you get free access to global markets.