Dubai’s success story in a relatively short period – its transformation from a desert to a global trading hub – is well known. Thanks to its strategic location, business-friendly government policies, open economy and the existence of sector-oriented free zones, Dubai has established itself as the place of choice for international entrepreneurs and companies looking to set up a business. Most entrepreneurs get a lot of benefits by setting up businesses in Dubai. A place like Dubai is conducive to industries ranging from manufacturing, logistics, transportation, aviation and e-commerce to education, research and development, healthcare and tourism.
Dubai is one of the fastest-growing cities in the world. It is located in the emirate of Dubai, one of the seven emirates of the United Arab Emirates. A decade ago, it was just an ordinary city, the main source of income being oil refining and trade. The oil trading sector is an important part of Dubai’s economy and almost all exports are oil and petroleum products. As a result of the government’s actions, the situation in Dubai began to change. The city that was once an ordinary city has become one of the most popular tourist destinations and is the most luxurious city in the world. Together with them, the city has gone through commercial and industrial development, becoming one of the largest shopping centers in the world.
Why Choose Dubai for Starting Business
Thanks to these developments, many people have found their way into the Dubai market. New companies have sprung up in the city of Dubai. Companies in the United Arab Emirates based in other emirates have been moved to the city of Dubai by their owners. A lot of foreign currency has also been provided in the form of capital and investments from investors investing in businesses in Dubai. New free zones were created which encouraged business in the region and motivated international companies to settle in this great metropolis.
Many foreigners have already moved to Dubai’s trading market and set up businesses there. Due to the ease of starting a business in the city of Dubai, these new investors have experienced no inconvenience, which has also helped turn Dubai into a popular shopping center. Since location is one of the most important decisions when setting up a business in Dubai, here are the industries that you think are the most affordable to start a business in Dubai.
Real Estate and Property Business
The real estate industry accounts for more than 20% of Dubai’s GDP. Construction projects are carried out by local and foreign companies, and architects from all over the world work here. These projects are geared towards the needs of international investors and tourists. The legacy of real estate projects in Dubai manifests itself in structures such as the Burj Khalifa, Burj Al Arab, Emirates Tower and the Palm Islands.
Tourism Industry
Dubai is the tourist center of the Middle East. It receives millions of tourists every year. In 2016 alone, more than 14 million international tourists flocked to the city. International traffic has also increased in recent years. It all started in the early 1990s when the then government decided to designate Dubai as an international tourist destination, making the city a world-class tourist destination. This makes travel agents and consultants a very profitable choice. You can set up a tourism business in Dubai to get the most from your business.
Retail Industry
Dubai is known for its retail area (market). With more than 70 shopping centers, the city is known as the trading capital of the Middle East. Merchants from across the city actively participate in the Dubai Shopping Festival (DSF) and Dubai Summer Surprise (DSS). Dubai’s retail business hit $73 billion last year, and while VAT is likely to have an impact on retail sales from 2018 onwards, the city’s long-term retail prospects look promising.
Education
Schools are one of the most important aspects of civilization in any urban community. Currently, it is estimated at 11.5% of Dubai’s school-age population and this number is expected to increase over the years. Dubai will need an additional 77,000 student facilities, which translates to around 50 new schools. The city is a mix of different cultures and will continue to host professionals and their families from all over the world. Therefore, additional investment and skilled manpower are required to build education infrastructure to meet future demand.
Oil Industry
Although oil’s contribution to Dubai’s GDP has declined over the years – to less than 5% now – it remains an important sector because it is an important industry. It is estimated that Dubai produces 240,000 barrels of oil every day. Most of the gas is also extracted from offshore fields.
Final Thoughts
Dubai is a center for industrial and commercial development. It is moving in the future wave to grow in tandem with sustainable development as a low-cost destination for foreign direct investment (FDI). When you decide to start a business in Dubai, even for friendly advice, contact a professional business set up a consultancy firm.