A city in the United Arab Emirates (UAE), Dubai has become a global hub for business, trade, tourism, and innovation. With its stable political environment, strong economy, low tax regime, and business-friendly climate, Dubai offers numerous benefits and opportunities for foreign businesses, including asset protection, privacy, diversification, and access to new markets.
Dubai has a vision to become the most innovative and sustainable city in the world soon. To make it possible, Dubai has embarked on a journey to transform its business environment and become the leading place for investors globally. Dubai’s efforts to streamline regulation, support innovation and digitization, provide world-class logistics and infrastructure, and develop human capital have paved the way for its premier position today as the preferred destination for foreign direct investment.
As a business person, you might wonder what the future holds for Dubai as a business hub. What are the trends and developments that will shape Dubai’s business landscape in the coming years? How will Dubai continue to attract companies and investors from around the world? Here are some of the key factors that will most likely determine it:
- Expo 2020: Expo 2020 was a mega-event that showcased Dubai’s achievements and aspirations to the world. Expo 2020 was held from October 2021 to March 2022, under the theme of Connecting Minds, Creating the Future. Expo 2020 featured pavilions from more than 190 countries, as well as exhibitions, events, and activities that will highlight the latest innovations and solutions in various fields, such as mobility, sustainability, and opportunity. Expo 2020 attracted approximately 25 million visitors and generated more than USD 33 billion in economic activity for Dubai. Expo 2020 has laid the foundations for businesses to network, collaborate, and showcase their products and services to a global audience.
- Digital Transformation: Digital transformation is a key driver of innovation and growth in Dubai. Dubai has invested heavily in developing its digital infrastructure and capabilities, such as smart city initiatives, blockchain technology, artificial intelligence (AI), the Internet of Things (IoT), cloud computing, big data analytics, etc. Dubai aims to become a paperless government by 2021, a blockchain-powered city by 2022, and an AI-powered city by 2031. Digital transformation will enable Dubai to enhance its efficiency, productivity, competitiveness, and customer satisfaction. Digital transformation will also create new business models, markets, and opportunities for businesses to leverage the power of technology.
- Diversification: Diversification is a key strategy for Dubai to reduce its dependence on oil revenues and create a more resilient and dynamic economy. Dubai has diversified its economy into various sectors, such as tourism, real estate, construction, trade, finance, logistics, manufacturing, healthcare, education, etc. Dubai also plans to diversify its energy sources and increase its share of renewable energy to 75% by 2050. Diversification will enable Dubai to cope with external shocks, such as oil price fluctuations, geopolitical tensions, or pandemics. Diversification will also enable Dubai to tap into new growth areas, such as green economy, circular economy, creative economy, etc.
- Talent Development: Talent development is a key factor for Dubai to attract and retain the best human capital in the world. Dubai has a diverse and multicultural population that can provide businesses with a large and growing customer base. Dubai also has a skilled and educated workforce that can support businesses with their operations and innovation. Dubai aims to become a global talent hub by providing various incentives and facilities for foreign workers, such as visa reforms, residency schemes, retirement programs, etc. Dubai also aims to develop its local talent by investing in education, training, and entrepreneurship programs. Talent development will enable Dubai to enhance its competitiveness, creativity, and productivity. Talent development will also enable Dubai to foster a culture of innovation and excellence among its people.
- Women-Led Businesses: Reflecting the growing global trend, women-led businesses are on the rise in Dubai. They are a testament to the entrepreneurial spirit and creativity of the female population in the city. Dubai is a place where women can pursue their dreams and passions, and where they can find support and opportunities to grow and thrive. Some examples of successful women-led businesses in Dubai are a fitness studio Leo Tribe Fitness, a bespoke furniture company Smith & Lizzy, a hair salon Locks By LouLou, a flower delivery service Florette, a nail salon Chi Nail Spa, and a communications agency House of Comms.
To move or not to move, that is the question
To become the world’s most innovative and sustainable city in the near future, Dubai has transformed its business environment and become a global leader for investors. Dubai offers many benefits and opportunities for foreign businesses, including easy company setup, no tax, 100% foreign ownership, and world-class infrastructure and connectivity. However, Dubai still has some challenges to overcome, with documentation fees, compliance issues, and cultural and linguistic barriers among them.
Dubai has identified some key factors that will shape its future as a business hub, such as Expo 2020, digital transformation, diversification, and talent development. They will create new trends and developments for businesses to follow. In the coming years, Dubai will continue to attract companies and investors from around the world by providing them with a competitive and conducive environment for doing business.
Considering the almost limitless potential both the city and the emirate boast, it is a small wonder that so many starupers and entrepreneurs are looking to register a company in Dubai. With the above in mind, trying to do it on your own may be a challenge. In this situation, it makes perfect sense to look for expert assistance. At International Wealth, we will help you find the best business structure and services for your goals. We offer free consultations to help you choose the most suitable business form for your situation. Our weathered experts will resolve any issues that may bother you, be it company incorporation, setting up a UAE bank account, or getting a UAE visa. Your business success is our priority and we are here to support you along the way.
