Why Dubai is Preferred Global Destination for Foreign Direct Investment

Foreign Direct Investment in Dubai

Why Dubai is Preferred Global Destination for Foreign Direct Investment

Over the last few years, Dubai has become a major access point for foreign investments and many countries are utilizing this platform to enter the wider region. The reason lies in the strategic location of Dubai which connects the economies of East and West catering to the needs of billions of consumers belonging to Middle East, Asia, Europe and America. Dubai has shown a tremendous amount of development in many sectors. Due to investor-friendly policies and world-class infrastructure, Dubai has earned investor’s confidence in a way that not only they want to enter in the market but most plan to settle there.

Key Economic Indicators:

According to Dubai FDI Monitor Report 2016, Dubai has successfully retained its position of being in the top ten global cities for attracting foreign direct investment. The Emirate ranks seventh by injecting AED 25.5 billion in its foreign direct investment inflows. The leading sources of capital are Canada, UK, France, Spain and United States of America and the top five sectors that drew FDI capital are non-residential building construction, accommodation and food services, scientific research and development services, real estate and retail and wholesale trade. In terms of FDI projects, Dubai has improved its ranking to number three spot, by attracting 247 new investment projects. For FDI projects, the top five sectors are software publishers, administration and support services, finance and insurance, retail and wholesale trade and scientific research and development services. The growth rate of Dubai’s economy is higher than that of Gulf region, increasing by 2.7% in 2016 and it is expected to increase by 3.2% in 2017. These statistics show that Dubai has become a hub for finance, business, trade and tourism and is the most preferred global destination for foreign direct investment.

Why Dubai is most attractive investment destination?

Dubai’s ability to attract investors from around the globe is because of the strength of the local economy and the ease of governmental regulations that it has for entrepreneurs. Apart from holding a unique position in the world map that caters to more than 2.4 billion people within 5 hours of flight, Dubai has diversified its economy in so many sectors that each potential investor has various options for setting up a business. Additionally, the government has spent a lot in providing world-class infrastructure for its inhabitants. Dubai ranks third as the most attractive investment destination for infrastructure investors. Also, due to the presence of various international airports and seaports, Dubai has become a trade hub. There are more than 6500 weekly flights through Dubai airports and 140 airlines directly connecting Dubai to 260 destinations. Also due to international events, trade shows and tourism, Dubai is the fourth most visited destination in 2016 according to the MasterCard 2016 Global Destination Cities Index.

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Benefits for New Business Setups:

If you are looking to set up a business in Dubai, you will have numerous advantages such as,

  • Various options are available to form what kind of company whether Mainland, Free zone or an Offshore company. Each form has its own unique benefits such as Mainland Company allows an investor to go directly in UAE market but restricts ownership to a maximum of 49% whereas Free Zone provides the benefit of 100% ownership of the company.
  • Individuals and corporations are exempted from tax.
  • Complete repatriation of capital and profits.
  • No custom duty or fees.
  • Availability of land, road, electricity and the entire necessary infrastructure to set up your business.
  • The banking sector is safe and profitable.
  • Cheap labor force
  • Healthcare, education and transport system is good.

Moreover, Dubai is preparing to organize an Expo 2020 which will bring together all the creative minds to share their ideas and analyze the opportunities that they can avail to set up their businesses. 25 million people are estimated to visit in Dubai during this event and approximately 70% of them would be foreigners. Expo 2020 is expected to generate a huge inflow of foreign direct investment which will lead to economic growth.

Large-scale industries, as well as small and medium enterprises, have an ideal opportunity to set up their business in Dubai as a result of Expo 2020 as well as the overall benefits the government provides through its policies and infrastructure. In order to simplify the process of setting up your business, KWS-Middle East is the best consultant agency to guide you along the way in a cost-effective manner. KWS-ME has been providing consultancy for over than ten years and its experienced professionals will give you necessary advice which caters to your needs and your business will be set up and running in no time.

We provide Free Consultancy to businesses and take care of all the requirements and processes which can save entrepreneur’s a lot of time, money and effort.

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