Dubai is one of the most business-friendly global cities and is thus preferred by start-ups and entrepreneurs alike. Dubai has a tax-friendly system in place along with some of the world’s most strategically located airports and seaports. It links Asia to the rest of the world courtesy its strategic location, thereby enabling ample markets for business growth. Naturally, global trade opportunities attract people from all over the world to Dubai on a regular basis.
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Doing International Business in Dubai- Key Things to Know
The Government of Dubai has trade agreements with multiple countries which enables greater ease of doing business. The Missal 2 system is another game-changer for better business prospects and has been established by the Dubai Customs Department. These services make international trade easier by migrating a majority of processes to the online domain.
The Dubai Customs Office also holds responsibility for the items to be prohibited/allowed for export/import into the UAE. The Dubai Trade Portal has all details on exports and imports along with other necessary information. Some of the key terms to remember include import for re-export, import, export, temporary admission and temporary export.
Why Dubai is a Major Global Trading Hub
Dubai has a population of 9 million citizens as of the year 2014 with GDP of $402 billion (USD) and $44,204 (USD) in per capital income by this period. Naturally, purchasing power of citizens per dollar in comparison to the USA stands at a whopping 149%. Additionally, Dubai has 85% of its population residing in urban areas and its ease of doing business index is ranked at 22 in a scale where 1 is the best rank and 189 is the lowest rank.
All these factors contribute towards firmly establishing Dubai as a hub for international business. The Emirate also has imports like precious metals, gems, machinery, coins and electronic machinery which are ranked on top. It is a major shopping and travel hub along with hosting major festivals and events throughout the year. The real estate and construction industries have also flourished in Dubai along with its hospitality and food and beverages sector.
Dubai has free trade agreements with investors and fastest-growing categories for imports include artificial flowers, feathers, tram and railway equipment, hair, explosives, footwear, aircraft, fireworks, inorganic chemicals, furniture, fittings and fixtures, dairy and eggs, clothing, ceramic products and leather. Foreign companies get benefits of tax exemptions which presents fabulous business opportunities all around.
Major Global Events keep Dubai at the for Front
Dubai is known for several mega events which keep the global investor and business population flocking to the Emirate all year round. One of the most popular tournaments include the Dubai Desert Classic Golf Tournament, the Dubai UAE (Abu Dhabi) Desert Challenge in the F1 cross-country rally, Dubai annual horse race with the highest prize money worldwide ($10 million) and more.
The Government organizes multiple trade fairs for businesses round the year as well, providing infrastructure, details and all necessary services for drawing more foreign investors into the Emirate. The upcoming 2020 World Expo will be a mega event of gargantuan proportions, spanning 6 months and is expected to attract 25 million visitors to the region.