Growing Opportunities In Different
Business Sectors Of Dubai
Dubai is the business center of entire Middle East and one of the fastest growing economies. Dubai's
economic strength is based on the thriving small businesses in the city. The main revenue comes
from the oil industries, but the city is now diversifying to others sectors like travel and tourism, real
estate, aviation, financial services, and infrastructure projects.
Top four reasons to invest in Dubai
Dubai as a Business Hub- Dubai has attracted a huge number of investors and business dealers due
to its developed economy and support offered by the government to start small business or
industry. Not just the citizens of Dubai but also foreigners can invest in these business opportunities.
The Foreign business provides a major increase in the economy.
Shopping center- Dubai is known as the "shopping center of UAE". The majority of the visitors get
attracted to Dubai for shopping as they can buy articles at a much reasonable rate. It has more than
60 shopping centers and has one of the largest shopping malls in the world.
The government of UAE helps and supports the establishment of businesses thus, starting a business
in Dubai is a very easy and convenient task. The government also encourages the investors and
grants incentives for starting a new business.
The business laws in Dubai are in favor of the investors and provide them with a tax-free
environment.
Given below is an elaborated list of businesses in Dubai.
1. Travel and Tourism
Tourism is one of the booming sectors in the economy of Dubai. Dubai, being the shopping capital,
attracts a large number of tourists. Dubai has many tourist attractions and five-star hotels that cater
to up to 50 million tourists. Dubai is the major hub for importing as well exporting of flowers. There
are many flower shops in Dubai that attract tourist from all over the world and for more info please
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2. Infrastructure and Construction
Dubai has recently developed large construction projects. The city is known for its high-rise buildings
and skyscrapers. Burj Khalifa, the world's tallest building, is situated in Dubai. The property market is
immensely growing, and real estate is now one of the biggest sectors in Dubai. After Oil and Gas
industry, Dubai is known for skyscrapers. Everyday new structure and buildings are being erected.
This has led to the growth of new opportunities for professional builders and engineers, and they are
now investing in the construction sector.
3. Energy sector
Dubai is formerly known as the core of Energy sector. The competition in the energy business sector
is huge; still the opportunity for investment is available to maintain the various generations' facilities
for energy
In Dubai, you are given plenty of opportunities; you get benefits of best economy based on strong
administrative foundations. Authorities of Dubai have divided the city in different economic
jurisdictions. You can start different types of businesses in Dubai bases on type of business and
location; types are divided in three main categories which are Mainland, Free Zones and Offshore.
Another thing to remember is that Dubai welcomes foreign investment but there are rules and
regulations that must be followed. In order for you to enter in Dubai, UAE you need to have sponsor,
a sponsor will take your responsibility.
Importance of a sponsor can be determined by the fact that for any purpose if it is business or you
are just visiting you must have a sponsor. When it comes to start a business in Dubai you are require
having a sponsor, any kind of business needs a sponsor or service agent. In mainland a local resident
or a of United Arab Emirates based company act as a sponsor, for professional service you need
service agent as sponsor and for setting up a free zone business you also need a sponsor, in this case
free zone acts as your sponsor.
Business setup in Dubai mainland requires you to have a valid license issued by the administrative
authority. The name of the authority is Dubai Economic Development (DED); it is a government
agency responsible for issuing the business licenses. Renewal of the license, cancellation and upgradation are also handled by Dubai Economic Development (DED).
To ease the investors Dubai Economic Development (DED) operates for different localities, thought
scrutiny process of the application is strict but department ensures the quick application processing.
In Dubai mainland, Dubai Economic Development (DED) issues four types of licenses, commercial,
professional service, Branch office and industrial license.
To setup your business in Dubai mainland under commercial license you are by law mandated to
have the help from local UAE resident which is also called local sponsor. Local sponsor is by law hold
the 51% shares of your business and you will hold only 49% of shares. However you are given full
administrative rights. You can draw contracts with local sponsor and allocate a yearly fee for being a
sponsor. Local sponsor sometimes work as silent partners. Local sponsor can be an individual or it
can be a UAE based company or group.
However, if you are setting up a business which involve professional services you don't need to have
a local sponsor, in that case you only need a service agent. Service agent works on your behalf and
helps you deal with the local administrative authorities to start your business. You are allowed to
hold 100% of your professional business and service agent will only be paid once for the service he
offered.
Free zones are special economic zones in Dubai which are specially designed to attract the foreign
investment. Free zone based business are fully owned by the investor and there are plenty of
options to choose with. Every free zone in Dubai has a governing authority or free zone authority.
For business setup in Dubai you would need deal with the free zone authority. You may be asked by
the authority to provide different legal documents before you finally give the go ahead in form of
license by that authority.
Free zone offers different attractive options for foreign investors such as you are given 100% of
ownership of your business. There are many options free of tax you can avail like no personal
income tax, corporate tax exemptions. There are different types of business setup options in Dubai
free zones like you can start of your business enterprise as a limited liability company or service
provider organizations, there are different licensing options. Business setups in free zones are
allowed to perform international trades. When time comes you can easily wind your business. There
is less paper work involved when it comes to end your business from a free zone.