Despite the challenging global and regional economic and political environments in Dubai, this top emirate continues to be as one of the top leading centres in relation to the construction industry. According to research by pretenders, approximately 28% of the UAE's construction projects are currently on hold.
Five Reasons to Set up a Construction Company in Dubai
1. The Innovation Game
The construction industry is the most popular, which is famous worldwide. The popularity is for shying away from innovation, and this does mean that there are significant opportunities available to offer a unique proposition as a start-up. Home to some of the world's most ambitious and innovative top-level projects, including the world's tallest building, Burj Khalifa, and also the world's first 3D printed office building. Dubai has always been striving to impress with beautiful architecture as well as a unique, ground-breaking construction technique.
2. Industry Growth
According to most of the research and survey published recently, it has been provided that the construction industry is on a peak of growth. The UAE has recorded the highest construction value by reaching USD 319.1 billion, which accounts for 51.1% of the total construction value on the top 100 projects in the GCC region. As an international business hub, the UAE has pushed forward some of the enormous construction projects in infrastructure and other segments. The extraordinary growth in leading projects such as the USD 7.8bn expansion of Dubai International Airport and the USD 6.8bn in Abu Dhabi International Airport.
3. Tax-free Dubai
It is a popular and well-known fact that Dubai's economy is tax-free, and hence, many business investors are attracted to this emirate due to the beneficial business setup option. The following mentioned are the initiatives and incentives which are to foster the business growth:
- Low VAT, Value Added Tax was recently introduced GCC-wide in 2018. The rate is set at 5% with exemptions on certain food items like Health, education and certain social services.
- There have been no direct taxes on corporate profits or any personal incomes (except on oil companies and branches of foreign banks)
- Meagre customs duties at 4% including many exceptions also Dubai permits 100% capital repatriation of capital as well as profits.
- No trade quotas or barriers, including no foreign exchange controls.
- Natural recruitment of expatriate labour from all over the world due to liberal visa policies.
4. Increase in FDI
The Dubai foreign direct investment will be continuing to invest more and more in the coming year to increase their foreign direct investment by in 2019. Dubai is making every effort to promote investment opportunities as well as for extending and strengthening the ties from major global countries.
In 2018, Dubai received approx. AED 17.76 billion and hence plans the same for the coming year. Similarly, for the forthcoming 2020, Dubai has been preparing for the World Expo and thus allowing every other investor to get benefited from such Expo and hence invest in the earning. Consequently, a large number of construction projects are in process for the same in Dubai.
5. Apt Geographical Location
One of the most thriving business sectors all over the world is the construction sector. Most notably, there is a race in the GCC region in relation to the said sector and Dubai is way ahead in this race. One of the main perquisites of setting up a construction company is its location. A proper location where import-export and the systems are readily available.
The UAE is very correctly located on the world map between the three major continents, Asia, Africa and Europe. There is easy access to the significant GCC countries and the Middle East Market in whole. The UAE and most specifically, Dubai as a whole is surrounded by China and India, which are an important source of raw materials and significant trading opportunities. The other side of the UAE is the European Union, being a critical trading partner.
So if you are planning to set up a construction company in Dubai, then this is the proper time, to begin with. However, in the process of starting a construction company in Dubai, one has been sure about every legal formality to be complied with, but one can never be sure of every aspect to be fulfilled. Hence it is advisable to appoint an expert consultant who can handle every other formality with ease. Our business consultant experts at Commitbiz years of experience are out experts in this field. If you have any type of query in relation to starting a business in Dubai, feel free to contact us. We would be happy to help.