The Shift of Global Businesses to Dubai

Dubai isn't just a place famous for buying fancy apartments anymore. Now, people see Dubai as a global hub where new ideas are born, and new technology is welcomed to improve life in all aspects. There was a time when the people of Dubai traded fish oil and pearls. But when oil was discovered, the city became an important business, tourist, and financial centre. Since then, there has been no looking back for Dubai. Even during the pandemic, when foreign investment dropped by 42% worldwide, Dubai stood strong with its stable economy. According to The Emirate's international chamber, Dubai attracted 104 small and medium businesses (SMEs) in the past 12 months to set up business. Of those 104 SEMs, 32% were from the Eurasia and Middle East regions, and 29% were from Australian and Asian countries. 26% of the businesses that moved to Dubai were from Latin America and Europe, and 13% were from African countries. The most popular sectors for these SMEs were trade and logistics at 17%, IT at 13%, and food and agriculture at 10%.

But why are businesses worldwide looking to operate in Dubai? Let's explore.

Business Friendly Policies

Many entrepreneurs who move to Dubai are from places like the United Kingdom, the United States, France, and Switzerland. The taxes are high in these countries, but in Dubai, these entrepreneurs don't have to pay taxes on what they earn. There are 28 free zones in Dubai where businesses can operate without paying taxes on exports and income right from the date of the company's formation. Dubai's tax and regulatory landscape is pre-defined and stays mostly the same. This certainty attracts businesses from around the world.

Government Initiatives

Dubai's current leadership has a great vision for sustaining it as a global hub. Companies from around the world want to be in Dubai because the government provides strong support for SMEs. The Smart City 2021 project is improving government services, encouraging partnerships with private companies, and attracting more businesses in Dubai.

A notable government initiative is the “Projects of the 50”. It is a series of developmental and economic projects to grow the city in the entrepreneurship, technology, economy, space exploration, and digital economy sectors. The project aims to provide training and industry insights to the CEOs of leading technology companies on the latest digital trends.

Some of the other initiatives in different sectors are:

• Smart sensors in traffic lights to monitor the traffic flow.
• Wireless sensors in parking lots to show empty spots.
• New technology to manage water and waste more effectively.
• Healthcare analytics to make services better and cheaper.
• Fast Wi-Fi networks to assist machine-to-machine and IoT communications.

Ease of Residency for Expats

Previously, a company outside the free trade zone had to share a 51% partnership with a local partner. After introducing the Golden Visa, business owners can now enjoy long-term residency without needing a sponsor. These visas are renewable after ten years and offer 100% ownership of the business. The Golden Visa has made Dubai more attractive to business owners and offers favourable opportunities for start-ups.

Ease of Transportation

The Dubai Metro and Bus services are among the world's best public transportation systems. They save commuting time and are the preferred choice for employees when travelling to offices. According to Airports Council International, the Dubai International Airport, one of the world's largest airports, is ranked number one for international travel. It supports over 100 airlines that operate flights to more than 260 destinations worldwide, so business owners who travel frequently can quickly travel to any part of the world.

Best Education and Healthcare System

More than 300,000 students are enrolled in more than 200+ private schools in Dubai. These private schools offer UK National Curriculum, CBSE, NGSS, FBISE, Canadian, Australian, and SWISS curricula and serve almost 90% of the population. So, foreigners can easily teach their children the curriculum of their own country. Students can also get access to university-level education and institutes offering vocational training.

The Ministry of Health and Prevention supervises the healthcare system in Dubai, which is known for its world-class facilities. The city has 53 government and private hospitals, 2,315 specialised outpatient clinics, and 58 day-care surgery centres. Most practitioners here speak Arabic and English. Golden visa holders are eligible for special healthcare and health insurance packages starting from under AED 2,400 up to AED 20,000,000.

Education and healthcare are necessities, and the availability of world-class facilities in these sectors adds to the appeal for entrepreneurs to move to Dubai.

The Happiness Agenda

Dubai has introduced a happiness agenda, the aim of which is to make Dubai one of the happiest places to live and work. The government of Dubai is aware that if people are not happy, they may leave the city. They don’t want to lose the top talent that comes to Dubai in search of a better quality of life. By taking care of what people need, Dubai is committed to retaining the talented workforce that will take the city towards further growth.

Conclusion

Dubai keeps developing new plans and initiatives that make entrepreneurs feel more confident. Many industry giants from around the world like to set up their regional headquarters here. They see Dubai as a City of the Future and a global centre for business. SMEs and start-ups find Dubai a great place to implement their unique ideas and expand their businesses. Dubai’s commitment to excellence will keep on attracting global businesses and make it a stronger global powerhouse in the years ahead.