It took no one by surprise when Dubai’s boom bubble burst just after the global recession kicked into full gear. The real estate and construction industries, which were among Dubai’s primary economic contributors for several years, suddenly found themselves in a dire situation. Businesses went bankrupt and expatriates were quick to leave before things became unbearable.
But, that was in 2008 and early 2009. How is Dubai’s business environment now? Are investors still looking for the silver lining in this gray cloud? Can the remaining entrepreneurs still make it work? What would you do if it were you who had a business in Dubai?
Let’s take some very interesting facts into consideration, before we go creating opinions and deducing.
1. Dubai is still the biggest trading port connecting the world’s East and West.
While some industries went crashing down, the trading sector in Dubai never waived in its strength. Between the early months of 2008 and mid 2009, trading was the same as it was during the booming years. Many investors from countries such as Japan, Kuwait, India, Singapore, Germany and Spain continued to apply for new trading licenses in Dubai. Have they suffered during the recession? Apparently not, because the contribution from the trading sector in 2009 has far exceeded expectations.
2. Professional practices in Dubai are still going strong
Doctors, lawyers, business consultants and IT service providers in Dubai are still earning a good income and maintaining their earlier lifestyles with ease. Some professions, such as marketing consultants, have suffered because people are no longer able to afford high advertising costs, but the overall picture here is a very positive one indeed.
3. Dubai offshore companies are in very high demand
Since the new Swiss regulations came into place earlier this year, the Dubai free zone company formations have increased. This is mostly because of the tax-free status and the 100% repatriation scheme upon business liquidation. Offshore companies in Dubai are mostly setup in Jebel Ali Free Zone and Ras Al Khaimah (RAK) Free Zone, but with new free zones such as Dubai Silicon Oasis, Jumeira Lake Towers and Dubai Investment Park coming into the limelight, the sky is the limit for investors who are looking for the best deal.
Considering the extremely positive outlook provided by the earlier points, it’s easy to understand that Dubai is rising up just in time. The government has changed rules and regulations, making it easier for investors to settle down in Dubai for as long as they need. With the new Dubai Metro public commuting system now in place and the low crime rate still intact, Dubai is now back among global economic giants. So, for all you eager investors out there, here’s a recommendation – start a business in Dubai. You won’t regret it.