Why Dubai?
The tax-free income, sophisticated business technological infrastructure, international outreach and the opportunity to establish offshore companies are synonymous with Dubai. While the global economic crisis did effect Dubai in the past year or so, investors will be glad to know that Dubai is already on its recovery path. Trading companies are flourishing and the services industry is back on track, despite the fall in the real estate and construction sectors.
Dubai business licenses are available for both mainland and freezone, but the licensing criteria varies according to the type of company been setup and the range of activities undertaken by that company.
Dubai (mainland) licenses are issued for the following activity types:
- Commercial Trading
- Service Providers and Professional Consultancies
- Tourism and Travel Agencies
- Manufacturing and Processing
- Branch and Regional Offices
Dubai Market Potential
Dubai is the Middle East's trading hub and the meeting point for the Far Eastern and Western commercial worlds. While the oil sector gained quite a reputation for United Arab Emirates in general, Dubai depended more on its non-oil commercial industries, such as imports and exports.
Among the main features of Dubai's market are:
- Noticeable High Revenue – over US$17 billion domestic imports take place every year
- Continued Growth – the imports market has reached beyond expectations by doubling in amount since 1989
- Wealthy – Dubai is strategically located in the centre of the world's wealthiest region
- Diverse – a wide variety of trade, services and manufacturing industries ensure prosperity through diversification
- Easy Access – served by nearly 200 shipping lines and 100 international and regional airlines
- Freedom – no trade barriers, quotas or exchange controls
Dubai Business Environment
Internationally standardized, highly efficient, excellent service quality and advanced infrastructure welcome the entrepreneur in Dubai. As one of the most developed and modern states in the world, Dubai offers a large number of benefits for those who wish to setup their business in Dubai.
The key advantages are:
- Free enterprise system
- Latest telecommunications infrastructure
- Modern public transportation and roads system
- High-end financial and services sectors
- Prime residential property and office premises
- Affordable and reliable utilities such as gas, water and electricity
- Internationally acclaimed education, health and government services
- Urbanized living conditions
Costs in Dubai
A Dubai business setup has several advantages from a cost factor viewpoint. Most benefits are correlated to the type of business been setup, but in general, there are some guaranteed advantages, including:
- No income taxes
- No corporate taxes
- No trade barriers
- No foreign exchange controls
- Competitive energy costs
- Competitive real estate costs
- Competitive labour costs
- Competitive import duties (4% with several exemptions)
Doing Business in Dubai Free Zones
- Special incentives are available for free zone business setups, including the following.
- 100% foreign ownership and control
- Renewable 15-year guarantee of no taxation
- No customs duties
- Flexible investment options
- Efficient transport and distribution facilities
- Full administrative and recruitment support
