If you are starting a business, Dubai is undoubtedly the business hub of choice in the Middle East region. There are several reasons why Dubai is ranked among the best cities in the world to launch a startup. And, no, it isn’t just about income tax exemption.
1. Ideal investment climate
Dubai provides an ideal investment climate for local and foreign businesses who can relocate to any of the free zones in the emirate without giving up equity to a resident. Dubai has a free and open economy similar to Western economies and perhaps more liberal than Northern European economies. There are few-er regulations to invest. Government interference in the private sector is minimal. There are no direct taxes on personal income or corporate profits (0 taxation instead of double taxation). Investors don’t have to worry about foreign exchange caps, trade quotas or barriers. Dubai offers low custom duties (4％).
2. Business Incubators and Accelerators
Incubators in Dubai foster a strong spirit of entrepreneurship and provide opportunities for startups to accelerate their growth. The role of these incubators is to help and mentor startup businesses by providing institutional support and resources. Incubators provide funding and a network of resources for early stage startups. In Dubai, starting a business is facilitated mainly through the availability of a competitive set of accelerators that help entrepreneurs to grow and survive in the market. In5 , Silicon Oasis ,SeedStartup ,i360accelerator and Startup Wings the best business incubators in the region.
3. Dubai is a global and regional trading hub
Dubai is one of the leading business and innovation hubs both regionally and globally. In the Middle East, Dubai represents the major export center accommodating the region with products and goods. Globally, Because of its strategic location between East and West, it is an international gateway that connects emerging markets in Africa, the Middle East and Asia. Dubai gained the reputation of the most connected city in the world by providing a business-friendly environment with flexible trading policies. For instance, it has a tax-free and duty-free temporary import of goods up to one year. Also, it provides businesses with an unequivocal infrastructure, banking, logistic facilities and financial services. Jebel Ali Port Dubai international Airport which is ranked as the world’s busiest airport for international traffic in 2015 , and Al Maktoum airport provide easy and accessible transportation of goods by sea , air and road, which represent the major drive for import and export businesses.
“Dubai has some of the world’s leading multi-modal logistics capabilities. By sea, it is situated between more than 150 shipping lanes and is the third-largest hub after Hong Kong and Singapore” said Ahmad Bin Sulayem, executive chairman of the Dubai Multi Commodities Centre Authority (DMCC).
4. Political and economic stability
Dubai enjoys a financially and monetarily sound infrastructure. It favours liberal oriented open market policies. That is, Dubai has an admirable legal system for business and ownership policies as well. The government bolsters admirable public-private business partnerships. Due to its political stability, Dubai benefits from low crime rates and social hegemony. That is why it is described as a “safe haven” especially for foreign investors. Dubai benefits from a dynamic corporate climate and a thriving and cosmopolitan business community.
5. Free Zones
Free Trade Zones (FtZ) are attractive features in Dubai. They have exceptional infrastructure facilities. They are often governed by their own juridical committees. Examples are The Dubai Silicon Oasis, Dubai International Financial District, Internet City Free Zone, Dubai Media City Free Zone, Jebel Ali Free zone , Dubai Airport Free
zone. These zones facilitate foreign businesses and
6. growing economy
Dubai enjoys a successful economic performance and it is classified as the most thriving economy within the region. Dubai’s economic strength lie in its trade, logistics and tourism industry. The government of Dubai has done remarkable efforts to diversity Dubai’s economy to reduce reliance on oil revenues. According to a survey of 300 cities by a leading American think tank “Dubai enters top five ranked fastest growing economies.”