If you are looking to relocate or grow your business, you should expand your business to Dubai. A lot of moving companies in Kuwait now offer services that will ease your growth or transit to Dubai. A couple of decades ago, Dubai was just a hot sandy desert, but the country is now experiencing perhaps the fastest overnight development in history. A report by the Global Financial Centres Index places Dubai as the eighth-best financial center in the world. Dubai has become one of the most attractive business locations for investors. Dubai’s economy is very strong and continues to grow and diversify all the time, making it very conducive to domestic and foreign businesses alike.
Why you should expand your business to Dubai?
The economy in Dubai keeps on growing. As part of its vision, the emirate aims to move its economy towards a future dominated by technological and research-based sectors. As a local trading outpost, Dubai has grown into one of the world’s busiest business destinations despite its relatively small size. Here are some reasons to expand to this Persian golf gem:
- A tax-free zone is the number 1 reason to expand your business to Dubai
- An incentive for foreign investment
- A Strategic Geographic Location
- Small and mid-size businesses support
Tax-free zone and foreign investment
There is no doubt that Dubai’s economy is very strong. It is growing and diversifying all the time, which naturally makes it a very conducive place for foreign and domestic business. It is the no-tax zone that makes Dubai the preferred work destination for both labor and businesses. Companies in Dubai have to pay corporate taxes only if they are hotels, oil companies, and banks. Companies in other countries have to pay huge taxes, which is why foreign investors and businesses are so excited to set up shop in the United Arab Emirates. Dubai does not impose any taxes on personal income, capital gains, corporate earnings, withholding, or value-added.
The investment opportunities in Dubai are numerous. Over three billion people live in the Middle East, Africa, and South Asia (MEASA) region, which has increased levels of mobile connectivity and increased trade and investment. During the worst of the pandemic, Dubai received over $6.7 billion in foreign direct investment, creating over 18,325 new jobs.
Geographic location
Dubai enjoys a strategic advantage due to its location. It enjoys the best of both worlds because it is situated between the East and the West. It is also one of the busiest airports in the world due to the large number of flights between Eastern and Western countries that pass through Dubai. Besides its major airline, it has one of the world’s busiest ports. Business people interested in doing business in the emirate can greatly benefit from the city’s extensive network of corporations. If you are shipping from Kuwait to Dubai, you will defiantly get a sense of how important the location itself is. Due to the country’s enabling base for land, sea, and air, businesses find it easy to do business there.
Expand your business to Dubai if you are a small or medium business
The UAE Government places special emphasis on small and medium Enterprises (SMEs). They are important for economic growth and diversification, and they also contribute to building the country’s human capital. Businesses are supported by numerous programs, business-friendly policies, and much more. As a result of COVID-19, the entire world was shut down. But Dubai offered one of the best economic packages to businesses.
Through small and medium enterprises, the UAE believes that businesses enable locals to unlock their potential and contribute to the country’s economic development. Educators and universities are encouraged to create an entrepreneurial culture to develop generations who are creative, responsible, and ambitious. The UAE will be among the best in the world in terms of ease of doing business, innovation, and research and development indicators.
Challenges of expanding your business to Dubai
The infrastructure system in Dubai is one of the best in the world. Businesses find it easy to do business because of the country’s land, sea, and air infrastructure. Still, there are some challenges to overcome if you wish to relocate or expand your business to Dubai.
Free zone restrictions
Many business people in Dubai continue to find free zones to be very attractive. But they come with a lot of restrictions. An important point to note is that any company located within a free zone can only conduct business within that zone. Their activities must also be limited to the type of business described in their free zone license. You will be reliant on a local compliance advisor who can charge high fees because each free zone has its own bureaucracy. Business owners who are unhappy with these restrictions should consider getting a mainland license in Dubai, which will allow them to retain their tax while lowering their costs. If you are relocating from Kuwait to Dubai, we recommend using a truck transport companies Kuwait and asking for more advice on free zone restrictions.
Cultural differences
Dubai has one of the most diverse cultures in the world. Over 200 nationalities call it home. It is the law that everyone should treat each other equally, despite their cultural differences. As such, if you start a business in Dubai, you can employ a diverse and skilled workforce. They can come from around the globe. But, there are strict rules regarding certain types of behavior and ethics. It is considered impolite to eat in public during Ramadan. It’s also impolite to wear immodest clothing and display affection publicly during this fasting month. Foreign workers may violate local laws without even knowing it.
Dubai offers many aspects that make doing business or staying for good there a unique experience, but it also has potential benefits. Businesses that can embrace and navigate these differences will find great success. Business movers Kuwait can help you if wish to expand your business to Dubai.