Home to one of the most successfully diversified economies in the world, Dubai has managed to cultivate one of the world’s most attractive business environments in recent years.
There are many reasons why Dubai has become an entrepreneur and investor favorite. The city boasts world-class infrastructure, cutting-edge technology, a diverse multicultural talent pool, and numerous business-friendly government initiatives. The list is much longer in reality, but here are the top five reasons why you should invest in Dubai.
One of the most investor-friendly countries in the world, the emirate’s visionary leadership has devised policies and regulations to make it easier for foreign investors to set up a business or invest in Dubai.
One of the city’s most defining initiatives in this regard is the 100% foreign ownership of commercial companies. According to Federal Decree- Law No. 26 of 2020, commercial companies no longer need to have a major Emirati stakeholder or agent, thus providing foreigners with full ownership of onshore companies.
Until this law was enacted in November 2020, foreign business owners needed to have a major Emirati stakeholder in order to own and operate a business in the country.
However, investors of all nationalities can now establish and fully own their own companies.
Dubai has a thriving multicultural hub and is one of the UAE’s major cities, attracting millions of tourists and people looking to do business every year.
A geographical advantage of Dubai is that it is positioned at the nexus of the East and West, making it a global gateway for commerce.
With approximately 2.5 billion people living within a four-hour flight of Dubai, and five billion within an eight-hour flight or less, the city offers unrivalled access to some of the world’s most attractive emerging economies, a key advantage for businesses looking to operate within the entire region, rather than just the emirate itself.
Another key advantage of Dubai would be that it has both a seaport and an airport, making logistics easier. Businesses related to import, export, international trade, tourism, and logistics can flourish.
Perhaps one of the most attractive reasons to do business in Dubai is its pro-business government. With the emirate’s leadership comprising future-focused visionaries with a strong growth mindset who are at the forefront of innovation, the Dubai government has a wide range of initiatives to encourage investors to invest or set up a business in the city.
The government provides an array of initiatives that aim to offer investors and entrepreneurs the business support they need to excel in the city’s burgeoning business environment. Some of these initiatives include Dubai SME, the Hamdan Innovation Incubator (HI2), Dubai Startup Hub, and Skill-Up Academy, as well as several startup incubators, all aiming to bolster the economy and the city’s SME sector.
According to the law, investors are required to specify the value of capital in articles of incorporation and company statutes but do not require a minimum amount for limited liability companies; the key advantage being that it helps facilitate the incorporation of companies and the establishment of new businesses, giving investors additional flexibility in planning their projects.
In addition, the Seed Group, a company of the Private Office of His Highness Sheikh Saeed bin Ahmed Al Maktoum, has formed numerous strategic partnerships with many leading global companies over the last 16 years. The Group aims to create mutually beneficial partnerships with these organisations to help them to enhance their presence and accelerate their sustainable market entry into the Middle Eastern region.
Through our Acceleration Program and Investor Program, we provide companies from abroad looking to set up a base in Dubai with holistic guidance to help them better understand the nuances of the MENA market and turn their venture into a profitable one.
Our work spans across a long list of industries and has helped several companies make it big in the region. We are continually on the look-out for the next most promising venture.
The UAE does not impose an income tax on individuals, a key advantage that has attracted foreign investment for many years. It only levies corporate taxes on oil companies and foreign banks. This means that Dubai has a very favourable tax environment for investors and businessmen, enabling them to gain maximum profit in an almost zero-taxable environment, excluding value-added tax and taxes levied on specific goods that are typically considered harmful to the environment and human health.
Aside from having no corporate tax and no import or export duties, the UAE also offers 100% repatriation of revenues and profits, and up to 50% reductions in more than 1,500 government fees, making it an ideal place for business.
Earlier this year, the UAE was ranked first globally for being “The Most Supportive Environment for Entrepreneurship” by the Global Entrepreneurship Monitor (GEM).
Around 95% of the UAE’s firms are SMEs or startups, employing over 40% of the country’s workforce and accounting for 40% of its GDP. Most of these businesses are based in Dubai and Abu Dhabi, the UAE’s major cities.
Not only is it the best place to do business, but it is also considered among the safest cities in the world. With a low crime rate and a high safety index, Dubai is a great place for investors.
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