Dubai is one of the fastest developing business destinations in the world. In just over 40 years, the city has been able to transform itself into a leading business, travel, and lifestyle hub. Today, some of the world’s leading companies have offices in Dubai, with new businesses opening up every day.

To realize its vision of building a truly diversified economy, the UAE government has implemented a range of economic and administrative policies. Added to its existing cultural and environmental advantages, this has transformed Dubai into one of the most attractive destinations for budding businesses and made it the second largest recipient of foreign direct investment (FDI) in Western Asia.

We have analyzed some of these policies and factors which has created this favourable economic climate of Dubai. The top 5 reasons are:


Thanks to its excellent strategic location, Dubai offers both large organisations and start-ups the chance to conduct easy and cost-efficient business with three different continents – Asia, Europe and Africa. Its large coastline further eases transportation and reduces industrial development costs significantly.


Dubai offers businesses tons of world-class amenities and commercial facilities like offices, retail stores and manufacturing units. To add to its existing coastline, Dubai has built the world’s largest man-made harbour – Port Jebel Ali. Other man-made islands like The World and Palm islands allow businesses to offer their customers a whole new experience in exclusivity and luxury.

Business-friendly policies

Companies looking to start offices in Dubai are offered a range of support services by the administration and the government. Dubai also has one of the most famous zero taxation policies in the region. Companies registered in Dubai are exempt from most forms of tax like personal income tax, value-added tax, capital gains tax and corporate tax. Additionally, companies operating in Dubai’s many free zones are allowed 100% foreign ownership and very low import duties.

Easy availability of manpower

Thanks to attractive salaries and a high quality of life, Dubai attracts skilled human capital from across the world. The government has also invested in large scale training facilities that help the available workforce become more competent and efficient. This saves businesses a lot of money that would normally be spent on training their employees.

Quality of Life

Dubai is a fast rising cosmopolitan city that’s almost at par with cities like New York, London and Paris. Thanks to an abundance of five star hotels and high-profile malls, Dubai has been gaining reputation as a leading luxury destination in the Middle East. This reputation has attracted a large number of high-spending customers,who have in-turn attracted international luxury brands like Bloomingdales, Gucci, Prada and Marks and Spencer into the region.

With all of these advantages and more, the decision to set up an office in Dubai or in any of its free zones should be an easy one for any business. And if you’re one such enterprise, it might prove helpful to get in touch with a company formation agent to guide you through the entire process.

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