At present, you’ll struggle to find a better place than Dubai to start a business. The UAE emirate has managed to situate itself as a global trading hub and best-in-class investment destination in many sectors of the economy, including – but not limited to – import, export, logistics, tourism, hospitality, event management, financial services and construction.
Add to this Dubai’s world-class infrastructure, a wide variety of commercial properties and being home to some of the most well-developed corporate facilities in the world, and you have yourself the perfect environment to foster a successful business, whether new or existing.
In this article, we look at the top 10 reasons why you should rent an office and open up a business in Dubai.
1. Ideal location
Dubai is strategically located between Europe, Asia and Africa, making it the perfect place to conduct business in any sector and industry. Its position in the middle of the UAE coast means that the city also has access to the sea, and is home to one of the largest airports in the world – through which Dubai facilitates the transportation of goods between the East and the West.
In addition, Dubai’s location puts it in a convenient time zone and gives the city access to 2.5 billion consumer markets situated in the Gulf, Africa, Asia, Commonwealth of Independent States (CIS) countries and Europe.
2. Little to no taxation
The general economy in the UAE is considered worldwide to be the most liberal and diversified in the region. As such, Dubai places a no taxation policy on almost all types of business activities, except branches of international banks, hotels and major oil and gas companies.
The following taxes are not applied in Dubai:
- Personal income tax
- Capital gains tax
- Value-added tax
- Withholding tax
- Corporate tax
3. A safe place to live and do business
The UAE emirate is one of the safest places in the world, for both living and doing business. Moreover, the UAE is considered to be one of the most politically stable countries in the Middle East.
Dubai’s security and political stability are two of the factors that are attracting so much international investment and business into Dubai. As well all know, a business can only grow and thrive in a safe and stable environment.
4. Residency visas
If you set up a business in any UAE emirate – Dubai included – you will be eligible to get a UAE Residency Visa for yourself, your family members and your expatriate employees.
The latter point is especially important as it allows you to hire and bring over experts or specialists in the field or job role you need to fill with little hassle.
5. Dubai Free Zones
A Free Zone in Dubai is a designated tax-free area where foreigners can set up and do business in the emirate with full ownership and without partnering with a local Emirati partner or agent.
Free Zones vary from one to the next, and each offer licenses in various sectors. For example, Dubai Healthcare City (DHCC) is a Free Zone for healthcare providers, while Dubai Knowledge Village is designated for educational and training institutions, and Dubai International Financial Centre (DIFC) is a Free Zone for media companies. Currently, there are more than 20 Free Zones currently operating in Dubai itself.
6. 100% repatriation of capital and profits
There is no restriction on the repatriation of capital and profits in Dubai. However, most businesses opt to keep their money in the UAE due to the country’s no-taxation policy. In addition, there is no foreign exchange control and a stable exchange rate exists between the US Dollar and the UAE Dirham.
7. World-class infrastructure
One of the great things about opening up your business in or moving your business to Dubai is that everything is ready to move in straight away, no matter the type of commercial space needed – whether it be an office, a retail shop, manufacturing unit or a warehouse.
The last decades have seen new and high-standard residential, tourism, industrial and commercial facilities being built rapidly and on a massive scale. Moreover, new roads, more convenient public transport systems and new airports are constantly being developed.
The UAE’s infrastructure has been rated among the best in the world, with the country coming in second in quality of roads, third in quality of air transport, fifth in port infrastructure and eighth in ground transport network – this according to Travel and Tourism Competitiveness Report of WEF.
8. Seaports and airports available for import, export and re-exporting purposes
Jabal Ali Port is one of the largest seaports in the UAE, while Dubai International Airport is the world’s largest airport in the region. Dealing with international freight is a hassle-free endeavour, making the import of goods from any part of the world to Dubai and vice-versa an easy process – whether through sea, land or air.
9. Home to renowned international brands
Microsoft, LG Electronics, HP, Oracle, Nokia, Sony, Boeing, HSBC, Royal Bank of Scotland. Shell, Emirates Airlines, Proctor & Gamble, Adidas and BBC World are just a few of the globally renowned multinational companies that have their regional offices based in Dubai.
And it doesn’t stop there. The American University, Michigan State University, Rochester Institute of Technology, Wollongong University, London School of Economics, London School of Business and Hult International Business School are all internationally recognised universities that have campuses located in the UAE emirate.
The presence and success of these companies and institutions are undeniable proof that Dubai is an ideal breeding ground for lucrative investments, booming start-ups and unmatched business opportunities.
10. New flexible rent schedules
There is currently an oversupply of commercial properties in Dubai’s real estate market – meaning that landlords are struggling to get new tenants and retain existing ones. This combined with the COVID-19 pandemic’s negative impact on the economy has prompted commercial landlords in the UAE to offer more flexible rent schedules in an attempt to retain tenants and a steady income.
In short, this means that instead of the tight, rigid single block leasehold payments commonly found in the commercial real estate sector, an easy-pay rent schedule will be adopted to benefit both tenant and landlord. Business owners can now pay 12 monthly rental instalments instead of one- or two-time annual rent cheques.
Naturally, this more flexible rental agreement has been celebrated by every business owner in the UAE, as it allows them to benefit from better or increase cash flow that can be used in other aspects of the business – like upgrading an office fit out for increased productivity, better functionality and a more updated look.
More importantly, it allows companies access to prime property around the UAE. Location is everything in the business world. But the better the property, the more rent you’ll have to pay – which has hindered many businesses from being able to occupy spaces in enviable locations around Dubai.
Now that companies no longer have to make one large payment upfront for rent, they can afford bigger and better offices in the emirate.
How can Contractors.Direct assist you?
When you finally find the perfect office to rent in Dubai and want to upgrade and optimise the interior to meet the wants and needs of your business, you’ll need the services of a fit out specialist to help you out.
This is where we come in.
Contractors.Direct offers a curated database of thoroughly vetted, quality contractors, interior designers and interior architects who can bring your vision to life, on time and on budget. Get in touch with us and we’ll be happy to connect you with the right people for the job.
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