How the United Arab Emirates turned a desert city, Dubai, into an international trading and business hub is extraordinary. Dubai is a case study for its success, and how UAE was able to bring its vision into life with this amount of success in such a short period. At this very moment, Dubai is hosting all the major companies and brands. Every multinational company is operating in the city one way or another, and every upcoming brand wants to have its presence in the most desired city of the business world. In such a short period, Dubai has established itself as the ambassador of business and tourism with a vast and active location with excellent services, first-rate infrastructure, and a diverse choice of attractions.
Multiple factors are involved in the making of this success story, starting from understanding the potential, UAE government’s vision to the execution of the plan. According to Knight and Frank’s 2015 Hub Study, investment in the financial and commercial services sector, trade logistics, and tourism development have all played a vital influence in Dubai’s emergence as a global hub over the last few decades. All of this has pushed UAE to establish itself as the most convenient place in the world to set up a business. While the business in the other parts of the world was struggling during the early days of the coronavirus pandemic, the UAE government took rapid measures to assist and aid the business community to overcome the challenges presented by the sudden events. This further improves Dubai’s reputation in the Business world and strengthens its claim to the throne, a global business hub.
Dubai is one of the top 5 tourism cities in the world. The city allures millions of tourists early with approximately 16 million international visitors. The emirates transformed the desert city into a modern paradise that basks in the glory of luring people from all over the world. Today, the city is home to some of the world’s most impressive structures and skyscrapers. Dubai has a wide range of entertainment and tourist opportunities. Whether you’re on your honeymoon or on a family vacation, the Emirate welcomes all types of visitors. People are drawn to Dubai because of its development in sync with western technology while maintaining its eastern culture. There are over 100,000 luxury hotels in the city, ranging from five-star luxury to mid-priced budget-friendly options. Since 1999, the current business plan for hotels in Dubai has risen by 17 hotels each year. In the next years, the trend does not appear to be slowing down.
Dubai – The International Business Hub
Dubai has established itself as the go-to place for hosting business conferences, meetings, seminars, exhibits, and sporting events. With a lot of people visiting from around the world, it is the ideal location to host the said events. To facilitate the events, the city offers a vast range of sports facilities meeting the requirements of today’s competitions. And to support the other events, Dubai has developed a strong hospitality framework with hotels, transportation, restaurants, and other service resources to enhance the experience of the visitors. It goes without saying, the emirates have set a benchmark for hospitality for the entire world.
UAE’s location on the world map is one of the vital factors which helped them become the economic hub for Asia, Europe, the Middle East, Russia, and Africa.
Assisting Small Enterprise
Dubai has proven itself to be efficient in aiding businesses of all scales, which translates well because of the hospitality framework that helps businesses of all types and sizes. The city quickly emerged as a hub for new multinationals and business ventures. The service sector makes a big part of Dubai’s GDP and is the fastest expanding industry.
The city has evolved into a major commerce and business hub in the Middle East. As of now, more than 20,000 foreign companies are operating in Dubai, including the 124 Fortune 500 organizations. The government showcased itself as business and investment friendly, with some of the region’s most liberal business policies, such as tax-free zones, the world’s leading physical infrastructure, and easy access to a skilled and qualified workforce.
Dubai is a burgeoning interactive platform that has pledged to provide technical and scientific advancements through a network of colleges and research institutes. Free Zones such as Dubai Healthcare City has been built to house more than 4,000 licensed professionals in two hospitals and more than 120 outpatient medical centers and testing laboratories in the heart of Dubai.
Dubai Internet City and Dubai Silicon Oasis, on the other hand, provide state-of-the-art technology, R&D, and manufacturing facilities, while Dubai Biotechnology and Research Park is the Middle East’s leading life sciences hub.
Development of Dubai Association Centre
The Dubai Association Centre provides a gateway to one of the world’s fastest-growing economies, offering an excellent location for worldwide organizations to flourish within Middle Eastern and international businesses. The Dubai Chamber of Commerce and Industry, the Department of Tourism and Commerce Marketing, and the Dubai World Trade Centre together created the DAC in 2014, and it has succeeded in cementing Dubai’s status as a regional center for organizations.
The Centre is dedicated to assisting and safeguarding the interests of regional and international organizations operating in Dubai. It is also dedicated to ensuring that associations in the emirate receive all of the resources they require to establish, thrive, and grow, as associations have enormous potential to contribute significantly to the UAE’s economy and vision, particularly in the areas of research, education, knowledge sharing, and the development of future industries. International groups looking to expand their impact in the Middle East and beyond are flocking to Dubai in record numbers. The number of organizations licensed by the Dubai Association Centre (DAC) continues to climb year after year, demonstrating this tendency.
The Dubai World Trade Center is also a major section of DAC which helps non-profit, apolitical, and non-religious professional organizations and trading organizations establish themselves in the Emirate of Dubai.
The DAC acts as a support network to help people connect in Dubai. It enables UAE-based professionals to form a member-based association within a traditional organization or industry.
In addition, DAC provides a platform for foreign organizations to build a regional representative office in Dubai to conduct business in the United States and beyond. Organizations have also benefited from economies of scale, operating knowledge, agility, adaptability, purchasing power, and centralized DAC facilities as a result of this.
Dubai has a diverse tourism offering as well as a large intake of corporate travelers. Many economies in the Middle East and abroad have experienced obstructive rules and regulations that prohibit foreign owners and personnel in fast-growing emerging areas.
To boost its economy, Dubai has established special zones in which the regulations allow foreign investment and support specialized businesses. As a result, free trade agreements are being used to gain an advantage over competitors.
Dubai is the ultimate center for new-age investors that rely on current technology to set up their startup due to its low taxes, investor pool, availability of finance, and affordable free zone.
In Dubai, service professionals and businesses, including expats, pay no sales or income taxes. According to a Brookings Institute assessment, the city has distanced itself from dropping oil prices and is not reliant on commodities to promote its economic growth.
Today, trade and tourism account for more than 28% of GDP, industry, and finance for more than 27%, and transportation for about 14%. It transforms the UAE into a global trading and tourism hub.
The founders of Modern Dubai were responsible for Dubai’s transformation from a desert location to one of the world’s fastest-growing hospitality and investment destinations. It was their vision that set a blueprint for what Dubai is today.
The founding fathers of this country intended to create an inventive commercial center that would ensure that assets continued to flow into the city and generate income, much like other big global hubs such as London, New York, and Paris, which have thrived for decades.
Reasons Which make the UAE an Ideal Business Hub
The United Arab Emirates has experienced substantial growth and economic development over the previous decade as a result of its business-friendly environment. UAE is today’s world’s most successful, vibrant, and fast-growing economy, as well as a major regional trading hub for a wide range of businesses, not just oil and gas.
Let’s have a look at the reasons that make UAE a prominent business center.
One of the primary characteristics that make the UAE a popular commercial destination is its strategic location. The country is remarkably well-connected to emerging markets and is strategically located near a global crude oil transit point, making it a well-positioned trading center within easy reach of key global financial cities.
The United Arab Emirates is one of the top ten tax havens in the world, with non-existent or extremely low (personal, business, or professional) taxes. The UAE government imposes no discriminatory taxes on foreign and domestic investors, making establishing a business in the UAE a highly valued prospect. This is one of the major appealing qualities of Dubai for investors, established businesses don’t have to worry about unwanted tax and startups don’t have to be scared of mounting business expenses and long-term liabilities. Because of which investors can expect huge returns on their investments.
Diverse and Skilled Work Force
Finding the appropriate individuals to work with is one of the most difficult aspects of starting a new business. Dubai’s flexible and cost-effective labor regulations, combined with its pleasant working environment, make it simple and – probably most crucially – relatively inexpensive to hire personnel from practically anywhere on the planet. Dubai offers diversity and skill in the workforce, 90% of the workforce is foreign, professionals from different parts of the world move to Dubai to capitalize on the opportunities available. UAE’s immigration and travel laws make it extremely easy for foreigners to travel in and out of the city. It also makes it easy for enterprises to scale up and down their personnel as needed.
Effective Business Policy and Government Support
UAE has implemented export diversification policies or multilateral trade policies that allow people to participate in free trade across all company types to better its position as an expanding economy that encourages foreign trade.
Business organizations need government structures that stimulate business activities and accelerate business operations. Meaning, no economic activity will thrive in a state without a business-friendly administration. The UAE government facilitates and encourages foreign investment by offering a variety of benefits to investors who want to set up shop in the country.
Economic Diversification Accelerating Growth
The UAE has a substantial supply of oil and gas reserves, with the fifth-largest confirmed natural gas reserves and ten percent of the world’s oil reserves. Economic development is at the heart of attaining sustainable development, according to the UAE government.
Even though oil production is the greatest source of revenue, oil exports only account for 30% of the country’s GDP (total gross domestic product). The government made other sectors their main focus of the economy and which have proven to be successful. The UAE’s economy has been rising for a long time, and the government wants to keep up the good work for a longer period.
Keeping up with Changing Times
In barely over three decades, the UAE has progressed from a fishing and agriculture-based nation to a country with world-class infrastructure that has fostered tremendous enterprise achievement. The UAE now embodies modernization, with equal participation of women in business and government, no gender discrimination, job security, advanced health care, enhanced education, and an open legal system, all while remaining true to its history and cultural traditions.
The United Arab Emirates has evolved tremendously over time, becoming a lively, powerful, and rich nation that embraces international trade.
Riz & Mona Consultancy
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