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8 advantages of company formation in Dubai

Before the year 2000, Dubai was well-known for being a prominent player in the pearl industry and then the oil industry. Now, it has branched out to the business and finance industry, implementing new laws, rules, and regulations to help make the country a better growth environment for young businesses and SMEs.

In only 20 years, Dubai has become an attractive business destination for investors and companies that want to operate in the high-growth markets of the Middle East, Asia and Africa. Here are some of the advantages of company formation in Dubai.

1. Growing Economy

Dubai has been successful in terms of economic growth, and in diversifying away from oil. Sectors such as trade, logistics, transportation, finance, services and tourism account for almost 75% percent of Dubai’s GDP.

The economy is also expected to benefit from next year’s Expo2020. It is the first World Expo to be held in the Middle East, and preparations for the event as well as the aftermath are well on track. Next year we can expect this emirate to be host to thousands or even millions of people from different backgrounds, ethnicities, and nationalities.

Furthermore, the growing tech environment has brought about a multitude of developments across several sectors. The number of underbanked and unbanked people is steadily decreasing due to the number of apps and consumer-oriented services that are available within the emirate.

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2. Favourable Investment Climate

Dubai’s Department of Economic Development (DED) has been instrumental in driving Dubai’s economic agenda. Their initiatives in making doing business in Dubai easier, and strong Government support, have resulted in Dubai being attractive to both local and international investors.

There are so many benefits to setting up in Dubai. Compared to the rest of the world, they have lower taxes, and in the free zones companies can benefit from zero corporate tax.

Furthermore, the emirate is forward-thinking and welcomes development initiatives in the latest technologies. It is doing research on cryptocurrency and blockchain, to help facilitate better fintech transactions.

Dubai is also home to a variety of modern startups that are developing solutions. There are companies that are working to make the whole process of venture capital in real estate work online and there are others that are developing personalized artificial intelligence bots that they can condense into mobile apps so it can provide even the everyday citizen some investment advice.

Finally, on the part of the businesses, rest assured that the climate in Dubai is enhanced by the presence of many investors you can meet through networking to help finance your efforts in moving your business from dreams to reality, from the birth phase to the growth phase, and beyond.

3. Free Zone network

Dubai has more than 22 Free Zones that attract investors from all over the world. These are organized into clusters and provide one-window clearance for business that setup and operate. Investors have 100% ownership of their assets, along with no restrictions on repatriation of profit and capital.

The free zones are constantly developing new rules and regulations that will help with setting up your businesses within their hubs.

4. Tax friendly

There are no personal or corporate income taxes. This enables companies in Dubai to deploy their capital and earnings to expand their businesses, and attract good talent from all parts of the world.

Last January 2018, the UAE started their implementation of Value-Added Tax (VAT). However it is only at 5%, one of the lowest VAT rates in the world. Despite its implementation, the country has still seen a steady influx of businesses and investors from all around the world.

5. Geographic Location

Dubai is located between Asia, Europe and Africa, a gateway to over 2 billion people. This means it is the ideal hub to go and meet people of different cultures and backgrounds, and connect to them for a variety of business as well as lifestyle purposes. This is evident in the multitude of restaurants, businesses, and occupations available within the country.

In terms of time zones, it is also strategically located to bridge the gap between the East and the West. As such, many businesses that want to reach both business days can choose to set up here.

6. Excellent Infrastructure

Dubai has an excellent network of roads and highways, a world-class Metro system and exceptional ports and airport facilities. You don’t need a car to get around the place when you are in such a highly interconnected area. The emirate is also constantly constructing new buildings and hubs for people to go and enjoy or consider business in.

The emirate’s stable access to electricity, water, and internet across the entire area ensures that wherever you decide to set up, you will be provided with the basic necessities required to build on a foundation for your life in Dubai with your business.

Furthermore, the incoming Expo2020 means that there are several new properties that are in the final stages of construction worth considering.

7. Access to a pool of Human Resources

Companies operating in Dubai have access to a multicultural pool of talent from across the world. The local Emirati population is highly educated and seeks more active participation in the private sector.

The job market in Dubai is highly competitive, and you are sure to always have good options if you are looking for partners to help your business grow. From senior management to personnel, there are many talents in the emirate that are just waiting to participate in the growth of your business.

8. Security

The UAE has had a politically stable climate since inception. Dubai is known as one of the most tolerant, prosperous, secure and safe societies in the world and is ranked as the top Middle Eastern city in Mercer’s Quality of Life Index.

This is an impressive feat to pull of considering that the emirate is a melting pot of different cultures from the Middle East and Asia region, and all around the world. The UAE has consistently been successful in uniting different cultures and creating communities of tolerance and coexistence.






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