Examples of companies relocating to Dubai include an impressive number of companies leading the way with sophisticated technology, AI, biotech and medicine, solid waste solutions, safe and sustainable food, fintech, and more.
Despite the challenges the world faced in the past year, during which foreign direct investment declined globally by 42 per cent (from $1.5 trillion in 2019 to $859 billion in 2020), Dubai succeeded in attracting high volumes of FDI. This is a testament to our economy’s resilience and stability.
While it’s great news — and no secret — that Dubai’s economy is booming, start-up companies also cite Dubai’s reputation for safety, availability of quality education, ease of transportation, advanced healthcare systems evidenced by its ability to manage the coronavirus pandemic quickly and effectively, and tax structures as key reasons for their decision to relocate.
CIO World Magazine reported in April that,
“The UAE ranked first in the Arab world and the 31st in the world in the ranking of the most-friendly countries for emerging companies according to its annual assessment of the competitiveness of countries and their capabilities in an economy based on science and technology. The UAE scored 62 points on the general index, outperforming Greece, Norway, New Zealand and Indonesia.”
According to Fahad Al Gergawi of Dubai FDI,
“Success is achieved when everyone is moving forward together with the understanding that ‘We are all responsible.’ Our leadership’s constant and proactive focus on FDI has ensured that Dubai and the UAE’s policies and regulations continue to be in line with international best practices that investors appreciate and expect. In turn, increasing FDI flows have improved prosperity and quality of life for all residents and is one of the cornerstones of the country’s economic development. Our policymakers recognized the need for quick action early on during the COVID-19 pandemic and ensured that the strategies implemented to deal with the situation took care of all aspects – from the well-being of our residents as well as the economy. Stimulus measures were identified and announced to enable sustainable business and economic growth. The Dubai Government alone announced stimulus measures worth Dh7.1 billion.”
1. Booming Economy
The economy in the UAE remained strong despite the pandemic. Tourism, for example, was among the fastest in the world to recover.
Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, said:
“The UAE is envisioning the future beyond the Covid-19 crisis and we are working toward doubling our economy by 2030. Apart from benefitting from an array of incentives and latest law amendments related to full foreign ownership, bankruptcy, commercial companies and long-term residencies/citizenship, investors, entrepreneurs and creative minds can also capitalize on the country’s state-of-the-art infrastructure, superior connectivity and its highly evolved ecosystem of incubators, accelerators and investors. And yet, these are only few of the factors that make the UAE the bustling global trade and investment hub that it is today.”
2. Business Friendly Tax + Regulatory Structures
Interestingly, many of the entrepreneurs who select Dubai as home base are expats from the United States, United Kingdom, Switzerland, France, and other high-tax cities and countries. In Dubai, earnings are tax-free although it is essential to understand the tax requirements of every individual’s home country. Many also cite Dubai’s regulatory landscape as being desirable as they tend to prefer self-regulation. There are 38 free zones in the UAE that offer tax exemptions on withholdings, export, corporate and personal income as well as corporate tax exemption for 50 years from the date of the company’s formation.
3. Gateway for innovation
As a gateway for innovation, Dubai meets the needs of aspiring startups, with impressive multinational design centers, high-tech startup hubs, and strategic partnerships.
4. Strong Leadership and government
Dubai’s current position as a global hub is due largely to strong leaders such whose vision led to Dubai’s rise. Today, international businesses are interested in Dubai due to strong government support of SMEs. Specifically, Dubai’s Smart City 2021 initiative is transforming the city, revolutionizing the way government services are delivered, promoting private sector partnerships, increasing happiness, and attracting more interest in the region. Expo Dubai 2021 is another exciting milestone for the UAE that will draw worldwide acclaim as well as boost domestic travel which already expanded during Covid. With 180 nationalities in the UAE, its position as a global melting pot is admirable.
5. Ease of Residence Visas
To make it easier for businesses to relocate to the Emirates, the UAE announced in 2019 the availability of Golden Visas, long-term residence visas that allow business owners and their employees to live and work here without the historical requirement of having a sponsor. These visas are issued to qualified individuals and their families for 5 or 10 years, renew automatically, and offer 100 per cent ownership of one’s business, which differs from the historical requirement that a company outside the free trade zone have a local partner with at least 51 per cent ownership. The intent is to make the UAE more attractive to business professionals, especially start-ups and entrepreneurs.
6. Infrastructure and Transportation
Dubai boasts one of the best public transportation systems in the world, including excellent Metro and Bus options, and the Dubai International Airport (DXB) supports 100+ airlines and 260+ destinations worldwide. DXB is the world’s largest and fastest growing passenger and cargo hubs and the #1 airport for international passengers according to Airports Council International.
7. Quality Educational Options
Dubai has 200+ private schools for ages 6-18 that provide a high quality of education for more than 300,000 students. Private schools serve 90 per cent of the population and include mixed gender classrooms while the public school classrooms are separate for boys and girls. University-level education is free for citizens and there are a number of training and vocational schools as well.
8. Healthcare That Leads the World
Dubai has a great health system that offers a high standard of care in top notch facilities under the supervision of The Ministry of Health and Prevention. Of note are the government’s four hospitals - Dubai, Rashid, Latifa and Hatta; however, there are a total of 40+ hospitals throughout Dubai. Dubai citizens have access to free healthcare and employers are required to provide insurance to their employees.
9. Healthy Lifestyle Options Abound
There is no shortage of ways to maintain a healthy lifestyle in Dubai. Picturesque beaches, fabulous cuisine, bustling streets ideal for walking, and a reputation as a sports mecca all combine to keep Dubai residents and guests fit and in shape. Skiing, polo, soccer, cricket, tennis, cycling golf, basketball, camel riding and football lead the list of popular sports options.
10. The Happiness Factor
An important goal of the Dubai government is to make Dubai the happiest city on earth, which is being accomplished via programmes and innovative intended to meet the needs of visitors and residents on an ongoing basis.
Dubai continues to launch new strategies and policies that further re-enforce investors’ confidence that tap into its unique value proposition as the City of the Future, the gateway to regional markets, and a global hub for trade and investment. It is the preferred location for the regional headquarters of multinational as well as regional corporations. Startups too find Dubai a dynamic and supportive environment in which to test, finance, and expand business models. They benefit from Dubai’s world-class physical, social, and business infrastructure to reach billions of consumers in the Middle East and North Africa, South Asia, and CIS regions.
In summary, Dubai’s prominence as a global powerhouse is strong and will continue to strengthen in the coming years. Stay tuned for more developments as its influence on the world stage expands.
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