The World Bank’s Ease of Doing Business Report was released recently and placed UAE at 21st globally, 5 places ahead of its 26th rank last year. As the decade draws to a close, UAE’s continual business strides are a result of the country's strategy to build an advanced infrastructure and financial system that ensures prosperity, economic diversity, and sustainable development.
This year, the economy of the nation is expected to grow at 3.9%, propelled by the inflow of foreign direct investment (FDI) and growth in travel & tourism. Upcoming megaprojects such as the World Expo 2020, which is being hosted by Dubai, along with UAE’s focus on developing non-oil sectors, have boosted the economy of the nation by leaps and bounds. Furthermore, value added tax (VAT) – introduced in the UAE this year – is expected to be beneficial for the public coffers.
Dubai has been the flag-bearer of UAE’s progress for quite some time now. The paradigm shift in Dubai’s economy this decade, moving from an oil-dominant-GDP nation to an innovation-led business hub, is nothing short of exemplary. Owing to the government’s business-friendly policies and the progressive approach of the city, business setup in Dubai has flourished, making it one of the leading commercial regions in the world. Last year, about 20 thousand new business licenses were issued by the Business Registration & Licensing (BRL) section in Dubai, spanning Commercial (64.3%), Professional (33.8%), Industrial (1.1%) and Tourism (0.9%) sectors. This is largely thanks to the sector-oriented free zones distributed across Dubai.
The World Expo 2020 in Dubai will have a long-term effect on its economy. The projects built in the upcoming years will continue to benefit the city and the economy of the UAE as a whole. Not only will it set up a solid internal infrastructure to foster trade and manufacturing, but also enhance the country’s profile as a hub for commerce. The construction, transportation and storage sectors will benefit from the infrastructure required and the movement of visitors from, to and around Dubai. Dh15 billion is estimated to be spent on road and transportation for projects related to the expo. Expo 2020 is expected to create over a quarter million new jobs to accommodate 25 million visitors arriving in Dubai.
Dubai is riding on the wave of the future to grow as a favorable FDI destination in tandem with sustainable progress. Should you decide to open a business in Dubai, do contact us, even if it’s just for a friendly advice. We at Commitbiz have our team of experts to help you with company formation, registration and tax consultancy.