Dubai has come a long way in establishing itself as the thriving, ambitious and fast-moving economy it is today. In fact, Dubai is now among the world’s top 10 most attractive cities for entrepreneurs. Following recent survey results, consumer confidence in Dubai is ranked much higher than even Tokyo, Paris, London or New York.
So, what exactly makes this city so attractive for start-ups and SMEs across the world? Let's take a look at the top reasons why Dubai is so well-suited for setting up a business in 2020.
5 Reasons Why Dubai is a Great Place to Start a New Business
1. World-Class Infrastructure & Logistics
Dubai has a very well-developed social and economic infrastructure, including, but not limited to their high-quality office and residential accommodation, strong transport links and sophisticated financial and service sector. Ranked among the top three countries for infrastructure investment attractiveness by the Global Infrastructure Investment Index, Dubai’s excellent infrastructure makes setting up your business here easier than ever.
2. Strategic Location – Trading Opportunities are Limitless
Another great advantage Dubai has, is that it’s right in the middle of the world, enabling strong trade links to major cities such as Moscow, Hong Kong, London, Hamburg, etc. As one of the top trading hubs, Dubai has achieved exceptional trade growth over the years, and now hosts over 100 international trade shows annually. As a business in Dubai, participating in these fairs enables you to network with international companies and explore more opportunities without sacrificing your regular operations.
3. Low Taxation & Full Repatriation of Profits
There is absolutely no personal income tax in Dubai. Apart from a very few business sectors, you can still benefit from 0% corporate income tax, and repatriate your profits with no restrictions irrespective of what kind of business entity you set up. It comes as no surprise that this is the reason so many foreigners decide to set up a business in Dubai. Not only is there no tax on earnings but there are lots of leisure options for enjoying the money, making living in Dubai an excellent destination for you.
4. Resilient Economy & Strong Growth in FDI
What better reason for setting up a business in Dubai if not for the attention offered to foreign-invested companies. Dubai has a record of strong growth in FDI, attracting Dh46.6 billion FDI in H1 2019, a 135% increase when compared to the same period last year. Despite economic challenges that have arisen due to COVID-19, Dubai is determined to continue accelerating economic growth this year also. Most recently, Dubai announced $409m for the energy, trade, retail and tourism sectors. Government-related entities have even begun issuing support packages for their business partners and suppliers. Here at DMCC, we are actively supporting our members in maintaining their operations during this difficult time. Applicable as of 1 April 2020, our business support package offers discounts and waivers for DMCC's existing member companies, as well as new companies looking to set up. Dubai's response to economic threats due to COVID-19 reflects its robust and resilient economy.
5. Convenient Visa Policies
Visa regulation in Dubai is very expat-friendly. Setting up a business in one of Dubai’s free zones means you can quickly get a residency visa not just for yourself, but your family members and employees as well. With your visa, you can enjoy additional benefits, such as:
- Ability to open a local bank account
- Leasing housing on a long-term basis
- Freedom of movement
- Efficient visa application for other countries and regions, including Schengen countries
These are just some of the top reasons why Dubai has become one of the most sought-after places for doing business. If you are thinking about where to set up business in Dubai, consider setting up in the worlds #1 Free Zone, DMCC. Located in the heart of Dubai, DMCC offers your business unrivalled benefits and services to help your business succeed – that’s why over 17,000 companies have already set up their business in DMCC. Speak to an advisor today to find out more.