Dubai’s success has been largely due to its ability to adjust to changing circumstances. The optimistic view of financial experts is based on the strong pro-business attitude and the entrepreneurial skills of the largely expatriate population.

Dubai’s optimism is obvious to any business visitor to the city, seeing the high level of business activity, continual expansion of an already impressive commerce, residential and leisure infrastructure and the large number of construction projects underway. 

Dubai’s free zones offer an ever-growing list of advantages that has led many MNCs from around the world to move to Dubai:

• No taxation on profits or income
• No foreign exchange controls or restrictions on capital movement
• A stable, freely convertible currency
• Strategic location, bridging time zones between Europe and the Far East
• Efficient and well-developed support services, telecommunications and air links
• High quality, reasonably-priced office accommodation
• Excellent conference and exhibition facilities
• A cosmopolitan lifestyle and tolerant, virtually crime-free environment

Dubai offers incoming business all the advantages of a highly developed economy. Its infrastructure and services match the highest international standards, facilitating efficiency, quality and service. Among the benefits are:

• Free enterprise system.
• Highly developed transport infrastructure.
• State-of-the-art telecommunications.
• Sophisticated financial and services sector.
• Top international exhibition and conference venues.
• High quality office and residential accommodation.
• Reliable power, utilities etc.
• First class hotels, hospitals, schools, shops and sporting venues
• Cosmopolitan lifestyle.

Overseas companies setting up in Dubai can secure cost advantages not generally available internationally. Among the reasons are:

• No corporate taxes.
• No income taxes.
• No foreign exchange controls.
• No trade barriers.
• Competitive import duties (4% with many exemptions).
• Competitive labour costs.
• Competitive energy costs.
• Competitive real estate costs.

Dubai offers foreign companies a wide choice of business options, including:

• Direct trade – selling directly to established dealers and distributors.
• Commercial agency arrangements – appointee must be a UAE national or company; agreement to be registered with Ministry of Economy and Commerce.
• Branch or representative office – 100% foreign ownership permitted; local agent (sponsor) must be appointed; Economic Development Department licence required.
• Limited liability company – foreign ownership restricted to 49%; Economic Development Department licence required.
• Special free zone investment incentives.

Dubai’s highly successful Jebel Ali Free Zone and new Airport Free Zone provide all the advantages available elsewhere in the emirate, with the following additional benefits:

• 100% foreign ownership and control.
• Renewable 15-year guarantee of no taxation.
• No customs duties.
• Flexible investment options
• Efficient transport and distribution facilities.
• Full administrative and recruitment support.

Economy

Dubai has changed dramatically over the last three decades, becoming a major business centre with a more dynamic and diversified economy. Dubai enjoys a strategic location and serves as the biggest re-exporting centre in the Middle East. Its low logistical and operational costs and excellent infrastructure, international outlook and liberal government policies are attracting investors in a big way. Activities such as trade, transport, tourism, industry and finance have shown steady growth and helped the economy to achieve a high degree of expansion and diversification.

Investment

The Dubai economy enjoys a competitive combination of cost, market and environmental advantages that create an ideal and attractive investment climate for local and expatriate businesses alike. In fact, these advantages not only rank Dubai as the Arabian Gulf’s leading multi-purpose business center and regional hub city, but they place it at the forefront of the globe’s, dynamic and emerging market economies. Dubai, with its ancient commercial and seafaring traditions, has long been recognized as the Middle East region’s leading trading hub and has emerged as its key re-export center. In more recent years, the Emirate has become a major venue for a number of growing, profitable industries and activities.

Employment

Labour Law – Administered by the Federal Ministry of Labour and Social Affairs, Labour Law in the UAE is loosely based on the International Labour Organisation’s model. The Labour Law is protective of employees in general and overrides conflicting contractual provisions. End of contract gratuities are equivalent to 21 days pay for every year of the first five years of service and 30 days for every year thereafter. Employees are entitled to pro-rated amounts for service periods less than a full year, provided they have completed one year in continuous service.

Trade unions do not exist. In the case of a dispute between employer and employee, or in interpretation of the Labour Law, the Ministry of Labour and Social Affairs will initially act as an adjudicator.

Working hours and holidays –

The normal maximum working hours are eight per day or 48 per week. As in all Muslim countries, Friday is the weekly day of rest. During the Muslim holy month of Ramadan, normal working hours are reduced by two hours per day.

There are 10 days of public holidays (paid) in any year. In every completed year of service after the first, an employee is entitled to 30 days annual paid leave. This is in addition to public holidays, maternity leave for women and sick leave. Overtime is used extensively and additional pay is required for manual and lower ranking staff.