UAE stands as one of the most attractive markets for doing business, offering a dynamic and rapidly growing economy. Its strategic location, advanced infrastructure, and pro-business environment make it a global hub for trade, finance, and innovation. Businesses in Dubai can operate in either the mainland, which provides access to the entire UAE market, or within one of its numerous free trade zones, which offer significant incentives like 100% foreign ownership and tax exemptions. This flexibility, combined with Dubai's strong legal framework and world-class logistics, makes it an ideal destination for businesses seeking growth and international reach.

Dubai, part of the United Arab Emirates (UAE), is an attractive business market for several compelling reasons:

1. Prime Location:

Situated at the crossroads of Europe, Asia, and Africa, Dubai serves as a key global trade hub, offering easy access to a wide range of international markets. Its strategic location connects India to other major markets in the Middle East and beyond, facilitating robust trade relationships.

2. Favourable Tax Policies:

Dubai provides a tax-efficient environment, with no personal or corporate income taxes in many sectors. Free zones in Dubai and across the UAE offer full foreign ownership, exemption from customs duties, and simplified business regulations, making the UAE an attractive destination for Indian investments.

3. Top-Notch Infrastructure:

The city is equipped with advanced infrastructure, including world-class ports, airports, and communication networks, ensuring seamless business operations. The UAE’s infrastructure supports its diversified economy, which includes real estate, tourism, finance, energy, and more.

4. Stable Economy and Governance:

Dubai's political stability and diversified economy, beyond oil, provide a secure foundation for business ventures. The UAE as a whole is recognized for its stable governance, which further enhances the country’s attractiveness for foreign investments.

5. Business-Friendly Regulations:

The government has introduced streamlined regulations, simplifying the process of starting and managing businesses. With strong legal protections for foreign investors, Dubai and the UAE foster a business-friendly climate that supports international and local businesses alike.

6. Strong Bilateral Trade with India:

The UAE, as one of India’s largest trading partners, accounts for approximately 10% of Indian exports and around 8% of imports. In the fiscal year 2022-23, the total trade between India and the UAE reached approximately $84.84 billion, underscoring the robust economic ties between the two nations. The UAE offers strategic advantages for Indian companies through its tax-efficient free zones and access to a high-income market.

Key highlights of the trade relationship include:

• Exports: India exports a wide range of products to the UAE, including precious metals, machinery, and chemicals, contributing significantly to India's export revenue.
• Imports: The UAE is a major source of imports for India, particularly in oil and gas, machinery, and electronic goods, supporting domestic industries and meeting demand.
• Investment: The UAE is a significant investor in India, with investments spanning real estate, infrastructure, and technology. Indian investments in the UAE are equally substantial, reflecting mutual interests in fostering economic growth.

ASC’s UAE Business Desk:

With over 30 years of experience in financial, management, and legal consulting, ASC’s UAE Business Desk assists companies in analysing, exploring, and establishing operations in the UAE. Our strong network of reputable contacts enables us to offer comprehensive solutions for company formation, investment execution, and business expansion, ensuring companies and investors can successfully navigate the dynamic UAE market.

For more information, please reach out to us at uaedesk@ascgroup.in.

*Source: India Brand Equity Foundation (August 2024), Dubai Chamber of Commerce, (August 2024)