The Ease of Doing Business in Dubai

doing business in dubai bookWhat makes doing business in Dubai such a compelling destination for company formation and entrepreneurship? One of this jurisdiction’s calling cards is the ease of doing business in Dubai. So, if you’re wondering why you should choose Dubai over everywhere else, we have a list of the advantages, as well as some insight into the opportunities available to you.


Why do business in Dubai?

Dubai is a multicultural city that has two-thirds of the world’s population within reach on flights of eight hours or less, allowing it to serve as a nexus for the East and West, along with being the heart of the Africa-Middle East-Asia triangle. Dubai’s rapid growth, strategic location and favourable business culture have led it to gain the reputation of being an easy place to do business. What numbers support that theory? 

The Doing Business study from the World Bank analyses economic regulations in 190 countries around the world. When examining the UAE, the World Bank used Dubai in its methodology. In the recently released 2020 edition, the UAE had an overall ranking of 17 in the world, and was the #1 economy in the region, outpacing its peer states in the Gulf. Within the criteria from the study, the UAE stood out as being the easiest country to get electricity, the third-best for gaining construction permits, the ninth-best for enforcing contracts and the tenth-best for registering property. 

The country aims to be at the top of these rankings, and many of the “smart” services on offer to UAE-based businesses are working to streamline the process more than ever before. These efforts include putting many bureaucratic procedures on blockchain technology as part of the Emirates Blockchain 2021 Initiative. Easy business set-up is one of the hallmarks of the enterprise culture in the UAE and one of the reasons why our clients come to us at Europe Emirates Group to establish themselves in the emirate. 


The advantages of doing business in Dubai

Among the benefits of the ease of doing business in Dubai are the wealth of options for corporate structure and the rewards that come with them. Companies in Dubai benefit from the following, regardless of the format:

  • A zero-tax regime, meaning no personal or corporate income taxes

  • Safe and robust governance

  • A world-class financial hub 

  • An educated supply of human capital with diverse professional experience hailing from all corners of the globe

  • No capital repatriation restrictions

  • No share capital requirements

  • No physical office requirements

  • Lower set-up costs compared to other onshore jurisdictions

If you’re familiar with the business climate in Dubai, the way corporate structures work in the UAE is that there are three types: Free Zone, Mainland and offshore. How does the ease of doing business correlate to the company type? Here’s what you need to know. 

Doing business in a Dubai Free Zone or on the mainland

Can a Free Zone company do business in Dubai? Free Zone companies generally can only operate within their Free Zones and abroad, not on the Mainland. However, the UAE recently announced changes to the Commercial Companies Law that eliminated the need to have a local agent be the majority owner of onshore, or Mainland, companies, making operations on the Mainland more appealing, especially in sectors like retail. 

How can you tell whether a Free Zone company or a Mainland entity is right for you? You’ll want to figure out where you want to operate. If you’re looking for Dubai to serve as a hub for regional commerce, a Free Zone entity will suit you best. If you want to service Emiratis, a Mainland firm might be a better option. 

Fortunately, working with a group of company formation and corporate services experts like us will ensure you choose the appropriate option to meet your needs. 


What is the cost of doing business in Dubai?

If you’re interested in learning more about how much a Dubai company will cost per your specifications, consult with our Dubai company formation team at Europe Emirates Group. We also suggest you look at our downloadable book about business set-up in the UAE for even more details as you set out on your business journey. Please don’t hesitate to schedule a consultation with our team today.

Written by
Adrian Oton
Adrian Oton
CEO, Europe Emirates Group 


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