Dubai, the dynamic city home to over half the world’s largest conglomerates, is host to more than half of their offices, according to CBRE. There has been rapid growth in its image and reputation as a dynamic and diverse destination offering quality accommodation, first-class infrastructure, and various attractions. Here are some reasons why Dubai is the business hub.
Dubai has extended its reputation as a meeting, conference, and exhibition, and sports tourism destination over the past few years. As the hospitality infrastructure expands, quality service standards for visitors rise along with transportation, hotels, restaurants, and other facilities.
Dubai’s strategic location between Asia and Europe is one of Dubai’s key characteristics; it becomes a hub for economies in Asia, Africa, Europe, and Russia. Here we have mentioned some reasons that why Dubai is the business hub.
A free-trade zone in Dubai
Providing tax concessions and customs duty benefits to expatriate investors is what the Dubai Free-trade Zone (FTZ) is designed for. The number of Free Zones in Dubai exceeds 30. Free Zone Authorities provide foreign-owned businesses with business licenses.
Licenses are only available to companies within those categories, and each Free Zone is focused around a specific industry category. Dubai’s free zones typically include trading, services, and industrial licenses for investors who wish to establish their businesses.
Establishment of Dubai Association Centre
A gateway to the world’s fastest-growing economies, Dubai Association Centre (DAC) facilitates connections between the two. This is an excellent unique opportunity for global associations to grow within Middle Eastern industries. It aims to help build nonprofit professional associations and trade associations in Dubai that are apolitical and non-religious.
An association wishing to establish itself in Dubai can contact DAC for support. A membership-based association allows practitioners registered in the Emirate to assemble within their given area of expertise.
DAC also facilitates the setting up of regional representative offices in Dubai for international associations to conduct business in the UAE and elsewhere. Therefore, associations can now participate in economies of scale, gain experience in the association marketplace, are able to adapt and change, and have centralized DACs.
High human resources
Due to Dubai’s liberal labor laws, thousands of people from all over the world migrate to Dubai every year. Now, the UAE government is placing more emphasis on training local Emiratis for employment in the booming establishments.
A supportive government
Dubai is the business hub because of its supportive government. In short, this is what Dubai’s Department of Economic Development (DED) and its four agencies do:
- come up with economic strategies
- identifying and supporting strategic industries
- provide various administrative support to foreign and domestic investors.
The economy growth
Dubai has been most successful when compared with other Emirates in terms of business development and economic growth. Nearly 60 percent of Dubai’s GDP is derived from trade, logistics, transportation, and tourism.
An atmosphere of investment
Dubai’s Department of Economic Development (DED) is in charge of Dubai’s economic agenda. In addition to helping to improve the economy, it also contributes to creating an investment environment that’s both domestic and international
Supporting local business
There are a number of business opportunities in Dubai, and the business climate is welcoming to enterprises of all sizes. A growing number of multinational companies and entrepreneurs have recently established their operations in the city. Dubai’s fastest-growing industry is the service sector, which contributes significantly to its GDP. This is another main reason why Dubai is the business hub.
During the past decade, the city has become a center for trade and commerce for Middle Eastern countries and has attracted many companies. Approximately 20,000 foreign companies have offices in Dubai, including 124 Fortune 500 companies.
There are tax-free zones, world-class physical infrastructure, and access to experienced and skilled labor in tax-free zones provided by the government, making it one of the most business-friendly regions in the region.
A number of other facilities such as Dubai Internet City, Dubai Silicon Oasis, and Dubai Biotechnology and Research Park offer state-of-the-art technology, research and development, and industrial facilities, respectively.