Are you thinking about relocating your business or starting a new one in another country? You can conduct business in many places in the world, but seriously consider business setup in a Dubai free zone.
Why consider Dubai, though? The following reasons make Dubai a good option for business startups, entrepreneurs and investors.
1. Strategic Location
The United Arab Emirates is in Asia but close to North Africa and Southern Europe. In fact, Dubai is only four hours of flying time away from one-third of the world’s population. Additionally, two-thirds of the global population live within eight flight hours of Dubai.
Thus, if you run a clothing company that distributes products worldwide, Dubai is an excellent location for your international fulfillment centers. If you’re shipping your products from Dubai, overnight delivery is possible for many of the world’s major cities. Pack orders and ship them out using air freight, and they can be in some locations in eight hours or shorter.
2. Efficient Airport
Dubai International Airport (DXB) was the world’s second busiest airport in 2023, next to Hartsfield-Jackson Atlanta International Airport. In the first quarter of 2024, 23 million passengers arrived at, departed from or passed through DXB. Airport executives forecast DXB will welcome 91 million guests by year’s end.
Despite its record-high passenger and cargo volumes, DXB remains outstandingly efficient. As a case in point, even though the airport’s baggage volume increased 24.6% year-on-year, DXB maintained a baggage-handling success rate of 99.8%. In other words, only 2.4 bags were mishandled out of every 1,000 passengers.
The outstandingly efficient DXB (as well as its competitively priced services) means Dubai does not only bring you within eight hours of more than five billion people in the world. It also means whatever your products – packable wool hats, plastic pipes, or coffee – you can be more than fairly sure your products will be handled efficiently and routed correctly.
3. Strong and Stable Economy
Brand Finance rates the UAE a perfect 10/10 in the “strong and stable economy” criterion. In other words, the UAE is perceived to be the strongest and most stable economy among the economies considered in the Brand Finance ranking. Overall, the UAE ranks 10th in Brand Finance’s Soft Power Index, which ranks world economies according to their soft power branding based on a survey of 170,000 participants from 100 countries.
The UAE’s strong and stable economy goes beyond image, however. The International Monetary Fund (IMF) says the UAE’s overall GDP is expected to grow by approximately 4% in 2024, while inflation is projected to remain low and contained at approximately 2%.
Dubai itself has a robust and thriving economy. The Dubai economy is forecasted to grow by about 5% in 2024.
4. Business-Friendly Policies
Dubai is exceptionally business-friendly. The following items prove this.
Free Zones
Dubai has many free zones. Some free zones have distinct themes (e.g., Dubai Media City) that make it easier for businesses to locate suitable addresses.
Dubai free zones are for businesses that want a Dubai business address and the liberty to do business with other free zone entities but do not wish to engage in economic activities in the UAE mainland (non-free zone areas in the UAE). Thus, free zones are perfect for international companies that provide products and services for other non-UAE mainland business organizations and global markets.
The Best Place to Do Business
The UAE consistently ranks well in global rankings for places to do business.
The Global Entrepreneurship Monitor 2023-2024 ranks the UAE as the best place in the world to start and operate a business. The UAE has been the top economy in the Monitor for three consecutive years, ranking highly in the following indicators:
- The availability of funding for entrepreneurial projects
- Financing access
- Ease of market entry
- Infrastructure
- Research and development
- Knowledge transfer
- Government programs
- Supportive policies
- Taxation
- Education
- Cultural standards
Additionally, the UAE placed 16th in the World Bank Ease of Doing Business 2020 rankings. Incidentally, the rankings used data from the City of Dubai.
Among the remarkable characteristics of the UAE (i.e., Dubai City) that make it a top-ranking country when it comes to doing business is the ease of getting electricity; it ranks first on this criterion. It also ranks third, ninth and 10th, respectively, for ease of dealing with construction permits, enforcing contracts, and registering property.
100% Property Ownership
Speaking of registering property, do you know foreign expatriates can have absolute (100%) property ownership in approved developments in Dubai? This means you can buy and own property in Dubai. Absolute ownership means you can live in it, rent it out, or do whatever you want with it as long as you abide by the existing laws and regulations on property ownership.
Residence Visas
Additionally, if the property you bought is AED 750,000 or greater at the time of purchase, you can use it as your basis to apply for a two-year renewable residence permit (investor residence application or Taskeen). Additionally, if you acquire property (whether off-plan or mortgaged) valued at AED 2 million or greater, you can apply for the Golden Visa, a renewable five- or 10-year investor visa for property owners.
The golden visa provides many privileges, including:
- Sponsorship of family members, regardless of how old they are
- Sponsorship of as many domestic helpers as you need
- Visa not forfeited by staying overseas (outside the UAE) for more than six months
- Sponsored family members able to stay in the UAE for the duration of the residence permit even if the holder of the Golden Visa passes away.
When you apply for an investor visa for property owners, you must present a non-objection certificate (NOC) from the off-plan property developer or the bank holding your mortgage. The NOC must include confirmation of your payment of any amount related to the investment or mortgage. This is a vast improvement to the past requirement that you needed to prove paying at least AED 1 million for your off-plan investment or as a downpayment for your mortgage for your visa application to be considered. Off-plan properties also no longer have a minimum construction requirement; it used to be 50%.
There’s also a green visa option. The green visa is a five-year, renewable residence visa for investors and partners in commercial activities in the UAE. Holders of the green visa don’t require a sponsor.
Residence Visas for Employees
Free zones also make it easier for companies to sponsor visas for employees. The free zone authority processes employee visa applications.
Free zones do limit the number of work visas you can apply for. This typically depends on your office space. The bigger your office capacity, the more visas you’re allowed.
Start a Business in Dubai
The world may be your oyster, but consider Dubai in the UAE when deciding on the location of your business overseas. The above reasons are more than sufficient justification.
