Introduction

Dubai has long been recognized as a major business center in the Middle East region and in recent years has become one of the most important international business centers.

Case studies

During the 1990s Dubai expanded its business activities outside its traditional base as a member country of the Gulf Cooperation Council (UAE, Saudi Arabia, Kuwait, Bahrain, Qatar, Oman and Iran).

Currently, the city offers international companies a gateway to the Middle East, the Asian subcontinent, the East coast of the Mediterranean, the countries of the former Soviet Union (CEI) and Central Asia.

As an example, during the first half of 1996, Dubai’s top 10 export markets were Iran, India, Saudi Arabia, Azerbaijan, Afghanistan, Kuwait, Russia, Turkey, Oman and Pakistan. Now, with the growing number of international companies recognizing the expansion of trade in Dubai, most of the major global markets are covered.

It is true that oil has been a crucial factor in Dubai’s development since the late 1960s, but currently trade and the non-oil sector in general contribute 90% of GDP and the percentage continues to increase.

The industrial, tourism and service sectors are expanding rapidly, favoring the creation of a diversified and balanced economy. However, trade will remain for a long time the backbone of Dubai’s economy.

This traditional trading system, which has earned Dubai the reputation of “Merchant City” of the Middle East, is always important for foreign companies wishing to invest in the region. In fact, Dubai offers not only a regulated, liberal business environment, but also the experience of the local business community and familiarity with international business practices and a cosmopolitan lifestyle.

Dubai is strategically located midway between the Far East and Europe on the east-west trade routes and between the Soviet Union and Africa on the north-south axis. Its airport is ranked as one of the busiest in the world in terms of transit traveler flows and is linked to more than 130 destinations through over 90 airlines. Dubai’s maritime authorities – which manage Port Rashid and Jebel Ali – are incomparable in the entire region in terms of effectiveness and infrastructure.

There are no taxes on profits or income in Dubai and complete freedom of capital transfers is offered. Dubai has a sophisticated financial sector, telecommunications are excellent, and the cost of establishing a business is highly competitive.