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Setting up a Business in Dubai Requires Investment

by HosamHabib

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Dubai city is ranked as a place with millions of latent and patent opportunities. This place has offered tremendous wealth to so many people. Many of them were those who got an early mover advantage. They settled in Dubai with having nothing initially but then moved on with hard work, commitment and dedication and soon the results were started to produce. In Dubai, the environment for conducting business activities is conducive. The law and order situation is nice and skilled labor can be found easily. The factors of production are not that difficult to find. Where there are a lot of companies working in an industry and the competition is intense, the entry barriers for companies are not that high. The entrants are welcomed by the existing companies. The profit margins for companies are high and the market needs several decades to get saturated. After saturation the problems of maintaining sales revenue would occur but since this time is expected to happen several years in future, the existing players in the industry are at ease and carrying out their businesses effectively and efficiently.


When people land in Dubai they are attracted to the beautiful and elegant properties and building here. For investment purposes, this city offers so many opportunities for getting adequate return. However, a person who is here for the purpose of employment can get multiple opportunities of job. The pays are also commensurate to the level of service required from an employee. On an overall basis the pay levels are fair as compared to the pay levels offered by companies in other Gulf States. UAE is therefore a good place for people who come in here in order to search for jobs.


Business opportunities in Dubai depend upon the economic conditions of the city. The city has witnessed fluctuations but nowadays the business conditions are welcoming for new businesses to establish. The government of Dubai has also allowed people from all over the world to have a permanent business establishment. Usually countries try to protect the local producers and do not appreciate investments offered by foreigners. Further, in some cases foreigners are not allowed to establish a permanent business place or where such foreigners want to start a business they need to involve some local people for the major part of their business capital ownership. The government of Dubai has also offered incentives for new businesses in the form of provision of loan at less than the normal rates of interest. Further, there are some free zones where the commercial and business activities attract no tax percentage and in a nutshell these companies do not need to pay any tax on whatever business and commercial activities performed within such area. The trading partners are also reliable since they work under the strict rules and guidelines that operate in the city. The rules of business are well established and the companies are required to follow them at any cost. In case of non compliance companies are required to pay penalties.

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