Why Businesses are Choosing Dubai to Expand Globally
Dubai. The City of Gold!
Known for its iconic skylines, luxury shopping, and heart-stopping adventures in the desert, Dubai has something for everyone.
But the city is more than a hub for technology and tourism.
Did you know that Dubai is the top destination for the world's biggest conglomerates?
According to CBRE, more than 50% of the world's top organizations have operating offices in this dynamic city. What was once a dusty town with a local trading community has transformed into a business behemoth, rivaling the world's most popular business cities.
Today, Dubai is the most desirable city for business expansion. Studies show that 138 Fortune 500 companies have offices in this "epic city."
But why is Dubai considered an ideal business destination? We'll look into the top reasons why global businesses are choosing Dubai to expand globally.
1. Tax Benefits
UAE's economy is known to be quite free and diversified.
Dubai applies a No Taxation policy for almost all businesses, except for international banks, hotels, and major oil and gas companies.
Even though the last three years have brought significant changes, such as the introduction of VAT, Dubai's tax benefits are still among the best in the world. Among these, we enumerate the following:
· Dubai does not levy any personal or corporate taxes
· In most cases, the repatriation of profits from Dubai to other countries is free of tax
· Dubai has many free zones. These zones provide 100% import and export tax exemption, in addition to exemption from personal and corporate taxes.
· No employment taxes in Dubai
What's more, UAE has the lowest VAT, standing at only 5%, with some goods and services subject to a 0% rate. This makes Dubai the go-to destination for anyone looking to expand their business in the global market.
2. Safe Place to Live & Work
When moving to a new city/country, it's important to consider the security of your next home or business destination.
Some major cities like Cape Town in South Africa and Rio De Janeiro in Brazil are among the most attractive investment destinations in the world. However, they also rank high among the world's most dangerous cities by murder rate per capita.
In contrast, Dubai is one of the safest places to live in the world.
The city has one of the lowest crime indexes globally, registering 0.5 to 1 crime for each 100,000 population. Compared to the world average of 7 in 100,000 people, it's safe to say that Dubai is one of the safest places to live.
3. Strategic Location
Dubai is strategically located between Europe, Africa, and Asia. This makes it the ideal destination for business owners looking to expand globally.
Moreover, this glorious city is located in the middle of the UAE coast, stretching over 400 miles. This gives it access to the sea and is home to one of the busiest airports in the world: Dubai International Airport.
Dubai's strategic location makes it ideal for business activities in international trade.
4. Vibrant and Growing Economy
UAE is the second-largest economy in the Middle East, next to Saudi Arabia.
Dubai is the most prosperous in economic growth among the seven emirates and has succeeded in diversifying from oil. Instead, sectors such as trade, tourism, and logistics now account for nearly 60% of Dubai's GDP.
The city has a strong economy that continues to grow and diversify, both of which are conducive to domestic and foreign businesses.
While the economy of the UAE contracted 5.8% last year due to COVID-19, economists project it will see a 2.5% growth in 2021.
5. World-Class Infrastructure
The UAE places great importance on infrastructure construction and considers it a vehicle for social and economic development.
Dubai has a world-class infrastructure ideal for business expansion, ranging from roads to commercial development to communication networks.
The city boasts a world-class airport (Dubai International Airport) that has achieved the coveted status of being the world's busiest for international passengers. There's also a busy seaport (Jabal Ali Port) that serves the gulf, Indian subcontinent, and African markets.
In addition, the city has plenty of commercial buildings, shopping malls, and business spaces to suit every investor's needs. And with the recent opening of Souk Al Marfa—a world-class wholesale trading hub, Dubai has cemented its position as a leader in global trade.
6. Long-Term Visas
The UAE continues to enact laws that favor foreign investment.
In May 2018, the UAE cabinet introduced laws that allow long-term visas for those looking to expand their businesses to Dubai.
Today, if you set up a company in Dubai and any other Emirates in general, you can get a residency visa for yourself, your expatriate employees, and your family members. Better still, you might be eligible for long-term visas with validity permits of up to 10 years.
Moreover, the visa will allow you to open a UAE bank account, lease an apartment or equipment, and easily travel to other countries (such as Schengen).
The long-term visa arrangement makes Dubai one of the best destinations for foreign nationals looking to expand globally and settle in a thriving city.
The Final Thoughts
Dubai is a great place to expand your business, thanks to its tax-free business environment and cosmopolitan culture.
With a growing economy, world-class infrastructure, and a gateway to the world, Dubai has sculpted itself into both a convenient and economically efficient business habitat. If you're looking to grow your business, Dubai is the ideal launching pad for your expansion plans.
Make sure to follow us on our social media channels for future posts with advice and tips for growing your business in Dubai. We can provide you with the resources and make the connections you need to expand globally.