Dubai's free zones attract foreign investment.
Dubai's economy, which was once considered reliant on oil, is now diversified, relying on trade, services and finance sectors. Centrally located between European and Asian markets, Dubai has established itself as a hub in global trade. Its free zones attract foreign investment and can have 100 percent foreign ownership, unlike the rest of Dubai, which requires a 51 percent ownership by a United Arab Emirates (UAE) national. Small and medium enterprises are encouraged.
Advantages of Dubai's Business Opportunties
Strategically located in the Middle East, Dubai provides easy access for business trade. Its strong economy makes it attractive for business establishments. The country is soaring further with its modern and sophisticated banking sector that caters to a wealthy expatriate clientele, with privacy often compared to that of Switzerland. Furthermore, because there is no taxation, no accounts need to be filed. There are no public records kept of the directors and shareholders of a corporation and foreigners can send home their income, tax free.
Merchant Considerations
Dubai is labeled as the city of merchants and continues to be a place of trade opportunity for foreign business today. Dubai is politically stable and open to business with all countries of the world, with the exception of Israel. Foreign businesses enjoy Dubai's complete freedom of capital movement. Communication facilities are state-of-the-art and the city has a cosmopolitan lifestyle. You have the option of a regional office location or setting up a plant for manufacturing and distribution operations.
Benefits of Business Opportunities in Manufacturing
The government of Dubai encourages manufacturing operations, particularly if they involve acquisition of land for plant development. If you set up your factory and have a trade license from one of Dubai's free zones, you are exempt from import and export duties, commercial taxes, property license fees, land tax and restrictions on the transfer of capital invested in the zone. See Resources for a list of Dubai free zones. The law requires that you have a local partner who holds majority interest. Culturally, this can work in your favor when it comes to skillful negotiation in the manner that Arabs are accustomed to.
Media Business Opportunties
Businesses in graphic arts, publishing and packaging have the benefit of free zone opportunities through the International Media Production Zone (IMPZ), an initiative of the Dubai government. The IMPZ is interested in collaborating with media production companies around the world to create a media production cluster environment, with Dubai as the media hub. While this is a powerful opportunity, it is not inexpensive. The IMPZ has invested $280 million, and through its program is looking for strong investment partners with combined capital investment of another $280 million. For those that qualify the advantages are irresistible. You enjoy 100 percent ownership and tax exemption from almost all corporate and personal taxes.
