MG is an air warrior and a global traveler who loves to visit and explore new places.
Just 100 years back, Dubai was a little more than a fishing village. It was then a Crown colony and the British developed the place. In the mid-50s oil was. struck and the future of the entire region changed. The British left in 1970 and 9 states, known as emirates formed the United Arab Emirates(UAE). All the sheikhdoms are autonomous though overall the laws are the same. Dubai is one of the states that form the UAE but in every way, it is miles ahead of the other sheikhdoms. The important thing to note is that in most other emirates, plenty of oil reserves are available but Dubai is the only one that has practically zero oil, yet it is the most developed.
This is because the rulers of Dubai have positioned the city-state as a business center for innovation and entrepreneurship. They also threw in sops like economic free zones as well as a no-tax regime . These have cemented Dubai's position as
the commercial hub of this Central Asian region as well as a preferred destination for investment and doing business all over the world.
The authorities in Dubai have also set up a fast-track administration as well as a highly efficient infrastructure. All these have paid dividends and many businesses have flocked to Dubai. Foreign capital has steamed into Dubai to take advantage of
these favorable conditions. Thus in Dubai a highly efficient and modern free-
enterprise capitalistic state is created.
Dubai today is one of the most favored destinations for business opportunities in lots of sectors. Dubai has for long been an important business center in this arid region. Its geographical location is to its advantage as the markets of the Middle East, Northern and Southern Africa, the Indian Subcontinent and the CIS countries
are all within easy reach from Dubai. Thus Dubai has expanded and is now a
favored location for businesses in this region. Also, it has watered down Islamic
laws and this has acted as a spur to ex-pats to flock to Dubai.
Dubai presently has State-of-the-art communications infrastructure, modern
hospitals, and upcountry residential areas, and academic institutions. All
these have given a fillip to the lifestyle of the ex-pat who decides to come to
The city also has wonderful entertainment centers, bars. pubs, sandy beaches with no restrictions whatsoever, and you will get the feeling that you have not come to an Islamic country.
However to do business in Dubai certain restrictions apply. These will
have to be accepted. The most important is that you are required by law to
have a local emirate sponsor. Thus you just can’t go on your own and start a
business in Dubai. You will need a local sponsor or partner.
You can search for a partner by exhibiting your wares or goods in the many
exhibitions and trade fairs that are held in Dubai. Once your goods are
available and seen there is a good chance that you will be approached by a
local sponsor. Bear in mind that Dubai business is restricted in the sense that
the entire business is controlled by a few select families. No socialism here!
These families will have to be wooed to set up shop in Dubai.
Selecting a proper sponsor is thus of paramount importance, for a wrong
sponsor could lead you downhill and you might have to say goodbye to any
profits. Alternatively, a wrong sponsor may also see your expansion plans
move very slowly. Thus getting a good sponsor is a vital part of business in
Dubai. Also, ensure that your sponsor is not a party to another similar product
as in that case your only option is the legal remedy and tons of money.
Remember once you have taken a sponsor or agent it is next to impossible
to sack him. So it will be in your interest to visit Dubai as often as possible
to select a good partner.
What I have written above may look forbidding but practically it's an entirely well-oiled process. The rulers of Dubai want investments and businesses to come in because that is the lifeline of Dubai as it has no oil reserves.
However, all said and done Dubai's government has pursued a free and
balanced economic policy. The result is an excellent international reputation
that has encouraged and attracted foreign capital in almost all spheres of
economic activity. To get an idea of the economic prosperity of the country
- United Arab Emirates GDP Per Capita (PPP)reached $59884.
- Its Gross Savings Rate was measured at 46.8 % in Dec 2020.
- These are excellent parameters of the economy
This content is accurate and true to the best of the author’s knowledge and is not meant to substitute for formal and individualized advice from a qualified professional.
© 2021 MG Singh emge