Running Free

Did you know that SMEs account for 86% of employment in the UAE? Dubai is especially attractive because of its free zones, set up to encourage international trade. Businesses in these zones enjoy several perks. For instance, how does tax exemption sound to you?

While you’re in the thick of setting up your business, remember to set up a business banking account. This is important for business transactions within the free zone.

Of course, when you plan a business venture, you need to know where the opportunities lie.
Which activities are flourishing in Dubai?

Dubai has become a real business hub in the last few years. Activities that are really taking off there include:
Business and industrial consultancy
Banking, finance and insurance
ICTs
Transport and distribution
Travel and tourism
Media
Meetings, conferences, and exhibitions.

Where should you set up?
If you can offer products or services in any of these sectors, you should think of setting up in a relevant free zone. These zones are particularly receptive to foreign entrepreneurs who wish to start a business in the UAE. In many of them, rather than go into partnership with a UAE national (who would own at least 51% of the business) as according to Emirati law, they have the freedom to own the whole the business.
More importantly, you’ll be exempt from taxation and also from import and export duties. (Incidentally, exporting is easier because Dubai has the world’s largest man-made harbour, allowing you to ship goods in and out conveniently.) Meanwhile, if you wish to promote your business or recruit more employees and have established your start-up in a free zone, you can do so free of restriction.

What are the main free zones?
Dubai Silicon Oasis — this technology park specializes in microelectronics and semi-conductors. Additionally, it features on-site accommodation, with more than 500 villas.
Dubai International Financial Centre — this free zone is designed to develop the economy of the UAE and the wider region. The zone aims to establish 10,000 jobs in each of the following sectors there: banking, capital markets, asset management, fund registration, reinsurance and Islamic finance.
Internet City — this free zone is the Middle East’s largest technological infrastructure and is particularly good for businesses which are targeting emerging markets from the Middle East to the Indian subcontinent.
Media City — as the name suggests, Media City is an environment for the various media, such as journalism, advertising, publishing and music.
Dubai Airport Zone — this zone is particularly good for exporting high-value, low-volume products. Luxury items, electronics, gadgets, ITs, and jewellery are all ideal products for a business in this zone.

Business Etiquette
Despite this freedom, your business venture should respect the timetable. In Dubai, the working week is from Saturday to Wednesday, from 0800 to 13.00 and 16.00 to 19.00. Since Friday is a day of rest, avoid arranging business meetings or contacting clients or colleagues on this day.

Dubai welcomes foreign entrepreneurs who want to start a business in the UAE. It has even set up special zones to make it easier, offering perks such as tax exemption, import and export duty exemption, and 100% foreign ownership. Combine these benefits with business know-how and you can enjoy both business pleasure and success.

Emirate:  Dubai

Date: Jan 23, 2013

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