From just a desert to the business capital of the Middle East, Dubai has come a long way. It is a prosperous city with a high standard of living. It has now become the centre of attention in the business community. Strict government schemes and tax breaks have helped Dubai become what it is today.
Policies that made Dubai, Dubai!
The growth in financial and business services, trade and logistics, and tourism activity, over the last couple of decades, has played an important role in fuelling Dubai's emergence as a global hub, showed Knight Frank in its 2015 'The Hub Report'.
Dubai has attracted entrepreneurs and investors from all over the world due to one particular policy, which is the taxation policy. Companies and individuals do not have to pay taxes like sales tax and income tax. This policy is considered as a “way forward” for foreigners and they take advantage of this policy. Hence attracting technology influenced entrepreneurs, which have resulted in Dubai being seen as a “tech hub”.
But this policy alone isn’t enough to justify the eye gazing of the foreign investors on Dubai. The other reason is it geographical location. Dubai basically connects the Western Markets with the Eastern. According to Mustafa Abdel-Wadood, chairman of the executive committee, Abraaj Group,” Asia, the Middle East and Africa are markets growing at double the rates of the developed world, and the hub for accessing these markets is Dubai”
These simple facts alone must have got you thinking and wondering about How to start a business in Dubai. While you plan about investing in Dubai, there are few other things that need to be considered which are briefly explained in this article.
There is one thing that needs an investor’s attention and that is that the investor cannot own the business completely in the heart of Dubai city and must have a local partner. But a business can be owned completely if established in the economic free zone.
Jafza is an example of such a free zone. It is one of the most competitive zones to establish and grow a business. Every fragment of this economic free zone has been designed to meet and satisfy the requirements of foreign investors. Some of the advantages of investing in Jafza are:
100% foreign ownership.
0% corporate tax for 50 years
0% import or re-export duties.
0% personal income tax.
No currency restrictions.
No restriction on foreign talent or employees.
Does Dubai offer assistance in establishing a business?
Yes it does. Dubai Association Centre has been set up as a support system for associations to establish themselves in Dubai. The DAC has been established by the Dubai Chamber of Commerce & Industry, the Department of Tourism and Commerce Marketing. It basically provides an access route to the emerging economies, and allows organizations and firms to expand their business across the Middle East. If you want t o start a business in the economic free zone and not sure about the procedure, Business Consultants in Dubai can be of great assistance.
Dubai is now considered one of the hottest destinations for tourism and investment. The living cost is not as exorbitant as popular opinion would have you believe. With Hi tech integrated medical facilities, well serviced local and international financing and banking institutions and all types of entertainment options suited for all cultures and people from all over the world, Dubai has excelled as a destination for living, working and investing.