Dubai means lots of shopping, adventure in the desert safaris, and charismatic panoramic views from the deck of the iconic Burj Khalifa. Today we bring you a few exciting facts about the Dubai economy which are not widely known.
Read on. So that next time you are enjoying a delicious meal in the Emirate’s restaurant or attending a business conference, you know exactly what makes it a globally acclaimed city.
The Dubai, UAE Economy
Apart from being a promising commercial and trading hub, United Arab Emirates is a popular tourist destination with one of the best and most strategically located ports in the world and bountiful UAE free trade zones.
Here are a few facts about the Dubai Emirate in UAE that you should know:
1. Non-Oil GDP
It is a well-known fact that Dubai’s economy was built from the Oil industry. Other industries are rising. For example, Tourism contributes to 20% of the GDP.
Aluminum, metal products, clothing and garments, gold and other jewelry, textile, consumer goods, electronics, food products, and non-metallic mineral products are a few of the manufactured foods exported out of Dubai.
2. Strategic Location
Dubai is located strategically between the Far East and Europe on the East-West axis and between the central Americas and Africa on the north-south axis. It is adequately connected with developed countries in Europe, Asia, the Americas, and Africa by airways and waterways.
This gives it advantages in terms of connectivity and foreign trade.
3. Market of Dubai
The market is diversified and caters to developing and established businesses alike. In terms of raw materials and product supply, extensive and cheap energy is available, and vital agricultural export commodities are also readily available.
And above all, there are hardly any quotas, exchange control, or stringent import-export laws.
4. Favorable Political Environment
The political conditions largely decide the economic prosperity of the country or the city. In case the political conditions are stable, then the economy booms. This is because the government policies are stable, the stock market is strong and interested people trust the nation more to conduct business with it.
This is what exactly is working for Dubai.
5. Company Ownership Rules
A large number of foreign companies have either offshore companies or regional branch offices in Dubai. Global conglomerates like Facebook, Google, SAP, and Accenture have established a base in Dubai.
Foreigners can have ownership rights of up to 49% in the case of a Limited Liabilities Company and 100% for professional companies, branches, and free zone companies.
6. World-class Infrastructure and Support System
The Dubai government has invested heavily in transportation or telecommunications, industrial infrastructure, and energy. This world-class international infrastructure has attracted talent from all over the world.
There are exceptional business centers, modern highway systems, state-of-the-art telecommunications and internet connectivity, reliable and reasonable power supply, and utility systems.
7. Pool of Talent
If you are thinking of setting up your business in Dubai or opening a branch or regional office in Dubai. Manpower accumulation will not be a concern for you.
Here’s why, trained professionals from all over the world, like business consultants, marketing professionals, industry experts, medical experts, lawyers, etc., provide support to business owners in Dubai.
8. Lower Cost Structure and Tax Benefits
Did you know that any business within a free zone enjoys tax benefits like 0% corporate tax, 0% professional tax, and no customs duties? In addition, several other costs like those below are also cut because of flexible government policies.
- No trade barriers or quotas
- No foreign exchange controls
- Competitive real estate and labor costs
- Competitive energy costs
- High levels of liquidity and competitive financing costs
- All the above features make the overall cost of doing business very nominal.
9. Amicable Living Conditions
The excellent infrastructure, modern housing amenities, low crime rates, tolerance, cultural diversity, and cosmopolitan lifestyle make Dubai a sought-after destination for settling down. Clean beaches, cozy winters, and delectable Arabic cuisine are added benefits.
In such fertile conditions for business establishment, company incorporation in Dubai seems like a lucrative opportunity. It is advised to consult with international business consultant Commitbiz, who has years of business setup experience.
So, don’t wait anymore, do contact us today.
What does the UAE economic system consist of?
A free market-based economy.
What is the UAE’s GDP per capita?
3.8% worth of DH 1.489 trillion in 2021.
What are the export commodities that boost the economy of the Emirates?
Crude oil (45%), natural gas, re-exports, and fish.
How much does oil contribute to the UAE’s total GDP?
30% of the total GDP.
In which sectors did UAE rank 1st in the world of business?
The UAE ranked 1st in the following sectors:
- Low inflation
- Mobile broadband subscription
- Debt dynamics
- Credit gap.