Advantages of starting a business in Dubai

Advantages of starting a business in Dubai

Starting a business in Dubai or the United Arab Emirates is a very good decision at this time because of different types of advantages. Dubai is the commercial capital of the United Arab Emirates. 40 years ago, Dubai was just a simple local trading community. Now, this is the “city of gold”.

Dubai provides innovative commercial modules and vast business opportunities. Currently, the investor-friendly government has made a few steps to start a business in Dubai in order to make the process easy.

Fast forward 4 decades and Dubai is one of the largest and most exciting cities to be in. It is the business hub of the Middle East and the standard bearer of how proper investments and planning can turn around a city into something amazing. The economy of Dubai is blooming with lots of international companies setting up their companies here.

Business opportunities in Dubai also get perks on investments and tax advantages when compared to other countries. Foreign investors are always on the lookout to invest in something new or establish their own business ideas. 

Entrepreneurs and businessmen are always looking for opportunities, that things we discuss here some of the advantages of starting a business in Dubai. Hope it’s might be helpful for all of the investors:

Diverse and Growing Economy

It is always easier for a foreigner to start a business in an economy which is diverse and growing rapidly. Despite being an oil country, Dubai has developed its economy the most without using the oil power.

The GDP of Dubai in 2011 was mostly contributed by trade, logistics, transportation and tourism. In terms of statistics, Dubai saw an increase in trade revenue of 5.8 percent in the year 2011 as well as an increase in export revenue of a staggering 44.3 percent.

The revenue of hotels and restaurants saw an increase of 13.9 percent. All these were done with the inflation rate rising by a mere 0.5 percent. This just goes to show that investing and this is making profits for everyone including foreigners.

Legal Framework

One of the setbacks that most foreigners face while investing in a different country is the legal framework. There seems to be a lot of complex set of rules and regulations that prevent foreigners from conducting their businesses with ease. This is not the case in Dubai.

The laws here are flexible, the regulations have been relaxed and the government itself is always encouraging foreign direct investments. This makes starting a business in Dubai very easy for foreigners. Furthermore, Dubai became the first emirate of UAE to allow foreign ownership of land inside Dubai and allowed them to purchase stocks as well.

Abundant Manpower

No matter the type of business being set up in Dubai, there will be no shortage of workers in the city. This is one aspect of Dubai that most foreign investors take advantage of. The liberal labor policy of Dubai allows corporations and businesses to recruit workers from any part of the world. This also means that the cost of labor comes down quite a notch meaning the profit margins can be higher. 

The UAE government also has a hand in providing these laborers. They put these workers through extensive training to make them ready for any business that is willing to hire them. In fact, there are around 1.3 million people who are employed in Dubai but only 53000 of them are from Emirates.

General Advantages

Apart from all the points mentioned above, a major advantage that foreigners find while setting up businesses in Dubai are the General Advantages that are offered by the UAE government.  These advantages include the following answers;

  • 0% Taxes which make this the ultimate haven for businessmen.
  • Import duty is extremely low.
  • Double Taxation agreement by UAE
  • Free Trade Agreements of UAE

These entire makes doing business in Dubai a very smooth ride which can be thoroughly enjoyed.

Dubai Free Zones

There are over 20 Free Zones in Dubai. These places offer the perfect spot for numerous industries and businesses to store their products repackage them and then ship them further. In fact, foreign investors can benefit from having 100 percent ownership of their companies, thanks to the free zones.

The absence of income tax for companies registered with the mainland along with the ones registered in the free zones becomes the main reason why foreigners are so keen on establishing their business in Dubai.

Strategic Geographic Location

One of the best parts for foreigners to start their business in Dubai is the geographic location of the city. It is situated between Asia and Europe. It also has easy access to two of the largest markets in the world in the form of China and India. The many free zones in Dubai also allow shipping the products to other countries with quite an ease. It brings down the cost of shipping by a decent margin.


Dubai is the home of two of the largest airlines carries in the world in the form of Emirates Airlines and Fly Dubai. Both these airlines travel up to 120 different destinations each day and carry a massive number of passengers.

On the other hand, Dubai also dominates the cargo and re-exports market. This is largely due to their two massive ports, Port Rashid and Jebel Ali Port. These two ports see a lot of activities each day and remain busy all throughout the month. I guess you may like to ask some more questions about the advantages of starting a business in Dubai.

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Company Registration Expert Since 2012