Dubai has emerged as a leading global business hub due to its strategic location, pro-business environment, infrastructure, and lifestyle offerings. This article explores the key factors that make Dubai attractive for companies setting up or expanding operations.

Strategic Location:-

  •     Dubai is strategically located at the crossroads between East and West, providing easy access to lucrative markets across Europe, Africa, the Middle East and Asia Pacific.

  •     It is a central hub connecting these regions with efficient air transport and shipping routes.

  •     The city is only an 8-hour flight away from two-thirds of the world's population. This connectivity facilitates global networking, supply chains, and market expansion.

World-class Infrastructure:-

  •     Dubai offers advanced transport networks, logistics infrastructure and information technology for seamless business operations.

  •     The city's airports collectively handle over 90 million passengers annually. *Jebel Ali Port is one of the largest and busiest container ports between Singapore and Rotterdam.

  •     Dubai has invested over $8 billion in developing Media & Smart cities for technology and media companies.

  •     High bandwidth fiber optic connectivity makes digital services and ecommerce seamless.

Tax Incentives and Business Support:-

  •     Companies benefit from 100% foreign ownership with corporate or personal income tax relaxations.

  •     Minimal import duties and export taxes help boost profitability.

  •     Free zones provide prebuilt office space, flexible visas, and support services.

  •     Government backing for strategic sectors aids significant investments, with $22 billion committed to Expo 2020.

Lifestyle, Culture and Tourism Appeal:-

  •     Dubai offers an exceptional standard of living amidst luxury malls, beaches, restaurants and hotels.

  •     Degree-holding expats can secure long-term UAE residence visas.

  •     It blends global culture alongside Arab heritage for a unique expatriate lifestyle.

  •     With rising luxury tourism, the city attracts over 15 million high-spending visitors annually.

Key Takeaways:-

  •     The strategic crossroads location provides connectivity between the East and the West.

  •     Advanced infrastructure, logistics and IT networks for seamless operations.

  •     A tax-free environment provides financial incentives for businesses and employees.

  •     Supportive government policies towards strategic sectors and significant investments.

  •     Globally acclaimed tourism hub with over 90 million passengers travelling annually.

In summary, Dubai's geographical advantage, pro-enterprise governmental policies, state-of-the-art infrastructure and tourism appeal create a thriving ecosystem for attracting FDI, deploying skills/technology, accessing global markets, and sustaining profitability over the long term.


Frequently asked questions:

What are the benefits of setting up a business in Dubai?

Key benefits include 100% foreign ownership, corporate tax exemptions, import duty exemptions, advanced infrastructure, connectivity to global markets, tourism footfall and a thriving expat culture.

What kind of companies move to Dubai?

All sorts of companies spanning financial services, IT, consultancy, energy, tourism and e-commerce move to Dubai to leverage its strategic location and business ecosystem. Popular free zones cater to technology, media, commodities trading and manufacturing verticals.

What are the most common business activities in Dubai?

Key business activities revolve around trade, tourism, real estate, financial services, professional services, transport and logistics, technology, and media. Dubai serves as the regional headquarters for many Multinational corporations.

Does Dubai have any specific industry focus?

Yes, Dubai prioritizes strategic sectors like logistics, aviation, technology, and tourism, with policies, incentives, and significant development projects geared toward them. Expo 2020 showcases Dubai's capabilities across various next-gen sectors.

What kind of entry options exist for overseas companies?

Overseas firms can set up subsidiary companies, branch offices, and representative offices, or they can get virtual office solutions in one of Dubai's numerous free zones, which are tailored for specific industries and business activities.

What are the popular locations for setting up business in Dubai?

The Dubai International Financial Center focuses on financial services, while the Dubai Multi Commodities Center targets energy and commodities trading. Internet City and Studio City cater to tech and media firms, while Academic City houses R&D centres and startups.

How easy is it to hire foreign talent in Dubai?

Dubai has a skilled expatriate workforce representing over 200 nationalities. Sponsorship visas allow companies to hire foreign talent hassle-free, and free zone setups allow 100% overseas workforce ownership.

Does Dubai offer residence rights and ownership incentives?

Yes, Dubai offers renewable 5- or 10-year residence visas to select professionals and remote workers to retain foreign talent. Expats can also own property in designated zones after meeting specific investment criteria.

What kind of tax incentives are available for businesses in Dubai?

Dubai offers total corporate tax, personal income tax exemption, and zero import duties within free zones. Minimal duties apply to onshore companies. Customs duties are only 5%, reflecting UAE's trade liberalization policies.

How stable and investor-friendly are the UAE's policies?

UAE offers unmatched political and economic stability. Its investor-friendly reforms allow 100% foreign ownership across various sectors, and solid public-private partnerships catalyze growth-focused projects.

Is financing readily available to set up a business in Dubai?

Many international banks operate in Dubai. UAE-based banks offer easy financing options, and government-owned funds also provide financial assistance and loans to support SMEs and developmental projects, enhancing the ease of doing business.

Which sectors contribute the most to Dubai's GDP?

Trade, transportation, tourism, real estate and financial services account for over 65% of economic activity. Re-exports remain integral to Dubai's growth. Non-oil sectors drive future readiness across aviation, maritime, science and technology domains.

Which upcoming projects reinforce Dubai's value proposition?

Flagship projects like the Museum of the Future, Dubai Harbor, and eco-tourism-focused developments signal continued private-public investment. Meanwhile, global events like Expo 2020 accelerate tourism, sustainability, and innovative city capabilities.


In summary, Dubai's rise as the epicentre for regional and global business momentum is underpinned by strategic crossroads positioning, comprehensive infrastructure, attractive government incentives and policies that enable international trade and expansion. For overseas entities, the Emirate offers unparalleled ease, ownership advantages and connectivity to access regional markets and investment potential. Dubai leverages its unique value proposition to continuously rejuvenate high-value sectors spanning logistics, finance, technology, tourism and real estate to sustain long-term GDP growth.