At times, when many international economies are not doing so well, the most popular business hub of the UAE is making strides in the diversification of businesses and foreign investments. Dubai attracts thousands of global businesses every year and continues to do so even during challenging scenarios.

While various big cities across the globe don’t seem safe to travel even in 2021, Dubai is safer to do business now. The huge interest that investors from around the world are showing in Dubai clearly reflects in its positively increasing Business Confidence Index (BCI).

Dubai is continuously moving forward and utilizing technology in every sector and making smart business-friendly decisions to ensure overall progress.

If you are planning to do international business in Dubai, this post will give you a better idea of what you can expect.

Why Choose Dubai to Expand International Business?  

While you will now enjoy a myriad of advantages and benefit from various new reforms, the major reasons why international companies choose to invest in Dubai are as follows:

• Companies that run in Dubai don’t have to deal with corporate tax (except oil companies and foreign banks), withholding tax, and capital gains tax.

• International businesses in Dubai benefit from the double tax treaties signed between the UAE and more than 90 countries, including India, Japan, Austria, Belarus, Belgium, Mauritius, Canada, China, Egypt, Germany, Greece, Hong Kong, Italy, Kenya, Indonesia, Mexico, the Netherlands, New Zealand, Pakistan, Switzerland, South Korea, and Spain.

• In Dubai, there are no currency restrictions, and therefore, international companies are entitled to hold fully convertible offshore or onshore bank accounts in the UAE or overseas in Dirhams or foreign currency.

• Foreign employees and investors who wish to relocate to Dubai will enjoy a multicultural environment and liberal policies. Moreover, now, there is also UAE citizenship program for those who are eligible.

• In the entire Middle East and the Arab region, Dubai ranked first in the World Bank’s Ease of Doing Business report and positioned 16^th worldwide in 2020. So, Dubai is clearly the best choice for international companies planning to expand in the Middle East region.

Free Zones in Dubai

More than 30 free zones in Dubai are operating that come with their unique advantages (and limitations). Most free zones are dedicated to specific industries. Forming a business in any of the free zones in Dubai gives 100% ownership. According to the latest amendments in Dubai’s business laws, full ownership is also available now for mainland foreign businesses.

Free zones in Dubai offer various advantages, including an easy incorporation process, no import or export taxes, world-class infrastructure, fewer restrictions on staff recruitment, full repatriation of capital and profits, full exemption from income and corporate taxes, and low setup costs among others.

Industries that are leading in Dubai

Though almost every kind of business is flourishing these days in Dubai, certain industries are making significant progress, such as:

• Petroleum
• Construction
• Travel and tourism
• Webpreneur
• Clothing/fashion
• Electronics
• Pharmaceutical
• Finance
• Hotel and restaurants
• High-tech software
• Education
• Aerospace

More international companies are approaching Dubai as their preferred destination for expanding their business in Arabian, MENA, and Asian countries. Even though the UAE tops in the region when it comes to ease of doing business, incorporating a new company or branch can be pretty tedious for foreign investors. Seeking the assistance of business consultants and experts will help make the expansion of international business in Dubai easier for you.