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Entrepreneurs from all over the world have been rushing in Dubai for several
years now to invest business in this emirate. This is because the economy and
business in Dubai is one of the most successful in the world. Many factors
affect the economy and business in this part of the United Arab Emirates
including tourism, population, natural resources, ports, and more. Although many
are still thinking twice whether they should place an investment or not in
Dubai, many economists and business experts advised that this is the right time
to do so while the Dubai's economy is at its peak and still flourishing.
Natural resources such as natural gas and petroleum contribute at least sixty
percent of the total gross domestic product in Dubai. On the other hand, the
whole profit gained by the economy and business of Dubai is accountable for
almost twenty-eight percent of the income of the whole United Arab Emirates.
Moreover, the industry of natural gas and petroleum increases every year. In
2006, the said industry had an amazing escalation of more than sixteen percent
from the previous year. On the other hand, in the year 2007 the oil industry
increased by eighteen percent compared to the past year. With these figures, the
economy and business in this emirate is rapidly surging and definitely running
after other powerful countries in the world.
Aside from the oil industry, the tourism industry also plays a big role in the
development of the economy and business in Dubai. As of now, this is one of the
fastest rising sectors in the economy of Dubai. In Dubai’s whole gross domestic
product, the twelve percent of the whole budget is allotted for tourism alone.
This is equal to at least 1.9 billion in US dollars. Since tourism is also an
industry where Dubai rely its economy and business, the government is willing to
spend more than thirty billion US dollars for the next six years in order to
develop new projects that would draw tourists all over the world. Dubai’s local
economy and business establishments which are related in the tourism industry
expects that they will have at least ten million tourists by the year 2010
compared to 2.8 million last 2000.
By 1993, there had been several changes in the business law of United Arab
Emirates, specifically at Dubai. This is another factor that affects the economy
and business rate in the emirate. Such laws include the commercial transactions
and professional company laws. Banks and other financial institutions are very
supportive with all the aspiring entrepreneurs, whether you are a local resident
or foreign investor, who wished to establish a small company or a big firm in
Dubai. Having trademarks, copyright, and patents are also covered by the
business laws of Dubai and the whole United Arab Emirates.
Furthermore, one of the main reasons why many are enthusiastic in investing in
Dubai’s economy and business deals is because of the so-called corporate
tax-free in United Arab Emirates. However, companies who are in the oil industry
as well as foreign bank branches should pay the corporate tax. Experts foresee
that is very unlikely for the emirate to introduce direct taxation in the near
future. It may happen eventually provided that the oil industry and reserves
starts to dwindle.
With all these amazing facts in Dubai’s economy and business, who would not want
to invest in this very fruitful emirate? For sure, many would love to take a few
dollars out of their banks in order to develop something that could give you
more income such as real estate properties, establishments, and others.