The UAE (United Arab Emirates) consists of seven emirate. Dubai is one of them. Having a total area of 3,885 square kilometers, it is second to the largest emirate. Its population is approximately 1,029,000 in 2001 (germantravelnetwork.com). Having different race which ranges from 50% Arab and 50% mixed. Arabic and English are the dominant languages.
In terms of the economy, oil is one of the greatest contributors to the gross national product of UAE. But in Dubai, it only constitutes 20 percent of economic production. The main contributors are trading, manufacturing, and services. These include tourism as well as luxury resorts which are available in Dubai. This is the only emirate that relies mostly on tourism instead of oil. This is also considered as the Middle East's shopping capital.
The emirate is strategically located between Asia, Europe, and Africa which makes it a choice for events and business conferences. Dubai is also advanced in terms of technology and finance compared to the other countries surrounding it. 13 percent of Dubai's population consists of expatriate either from UK (United Kingdom) and/ or India. They also import laborers from South East Asian countries like the Philippines ("Introduction to Dubai", 2009).
Aside from petroleum, financing, and banking, there are no income, capital, and withholding taxes in Dubai. It has double tax treaties with high-tax countries. It is often used in international tax planning by major corporations (Rak Incorporation, 2009).
In 2000, the Government constructed Dubai Investment Park, also known as Dubai Internet City (DIC). It has a highly developed technical infrastructure. By 2007, almost 1,000 companies were established in the DIC, including the big names in IT, such as Microsoft, Oracle, HP, IBM, Compaq Dell, Siemens, Canon, Logica, Sony Ericsson, etc. ("Dubai: Executive Summary")
Is it safe - what concerns are there in this country from a safety perspective?
According to dubaiforlife.com, Dubai is a very safe place to go to for tourists, businessmen, and expatriates from all over the world. Dubai is the second most populous emirate, among the seven emirates that constitute the United Arab Emirates, after Abu Dhabi. As of 2007, almost 800 residents set up homes in Dubai every day. An often misconception about it is because it is located in the Middle East Asia where lots of turmoil is happening right now.
It is also safe even for women. In Dubai, they even have Pink Taxis which is only offered to women and/or women with little children. The rate is also the same with the regular taxis. The differences are female drivers and taxis are literally colored pink. But as a non-Western country, women especially tourists should dress appropriately. Casual clothing means no legs and shoulders showing off their clothes. It should be hidden underneath.
Dubai is also an Islam country. Islam virtues and culture is followed strictly. Some of the prohibitions that expats or tourists should follow during this month are not to eat public from sunrise to sunset. They should consume meals inside their hotel or residence (Pinheiro, et. al). Ramadan is the ninth month of the Isalmic lunar calendar. During this blessed month, Muslims all over the world abstain from food, drink, and other physical needs during the daylight hours. Ramadan is much more than just not eating and drinking. It is a time to purify the soul, refocus attention on God, and practice self-sacrifice (Huda, 1998).
In the said country, crime rates are low compared to other countries; petty crimes are still evident. And according to reports, embassy advises all non-resident citizens to take the same security precautions in the UAE that one would practice in their own countries ("Dubai Safety").
What is the region like? Is it stable? What concerns might expat families have?
There are lots of things which need to be considered when moving to Dubai, such as work, accommodation, basic needs, education, health, entertainment, and public services. Their customs and traditions should be strictly followed as well. It is really different from what we usually do in our countries.
An example would be in driving. Driving and pedestrian safety has also been an issue given the different nationalities that share the road. A person should cross the streets using a pedestrian lane with clear markings. Over speeding is common. Rules should be followed to reduce the chances of being knocked over. Driving on the extreme left lane of highways should be avoided to avert being "flashed" and being forced to move a lane over.
Road rage is also starting to become an issue. It also increases traffic jams and caused by poor driving courtesy. If reported, rude hand gestures (i.e. "finger") and profanity (e.g. undressing inside a vehicle) can lead to fines and/ or imprisonment. In general, these gestures and actions might be only slightly offensive in some countries. But it can, at times, be extremely offensive to the Dubai locals. Therefore, using a degree of common sense of what is right and wrong will help you stay out of trouble ("Dubai Safety").
Cost of living in Dubai is also higher compared to other countries such as United Kingdom but there is some compensation since there's no personal tax. Costs of food products are high especially in downtown areas as well as water. Middle Eastern countries provide and/or export wine and alcoholic beverages to Dubai. As for meat products, Dubai exports camel and lamb meat. Agriculture and brewery are not the main strengths of the country but there are a few already doing these businesses (Castro, 2009).
What THREE businesses could we make a go at in this country? Why do you think that these businesses would work? Is it because of natural resources, labor costs, or what?
Unlike its fellow emirates, Dubai doesn't depend on oil. Oil revenues only constitute 6% of their gross national product. It built its importance as a port and trade center. It has succeeded in attracting western businesses.
The three businesses that can be invested on in Dubai are luxury resorts, real estate, and telecommunications. Today, Dubai has carved a niche for itself as a luxury tourist destination and continuous development of luxurious resorts and accommodations are likely to make an ongoing trend. Also high tech and media companies are attracted by industry free zones in the country. Some of the investors are IBM, Reuters, CNN, and Microsoft.
Dubai also has a booming real estate market. This is backed by the government's strategy of diversification into the tourist and service industries. Some projects are definitely recognized worldwide, such as Palm Jumeirah and The World developments created entirely on a man-made island. Dubai also has some of the world's tallest sky-scrapers ("Economy of Dubai", 2006).
These businesses worked because it is supported by the government. The government wants to attract more tourists and Western investors to their country. They want it to be a tourist spot in midst of the bad impression seen by people in the Middle East.
What is your recommendation - are you willing to move there for a five year assignment?
Knowing that Dubai is safe to live in, I would recommend to invest business in this country as well as to live in it. The government is taking the initiative to protect their tourists and expatriates in the country. Having a low crime rate, it's a good sign for investors to have their businesses in a district where they could transact freely.
VI. Video link of Dubai
Please see link for a video link: http://www.youtube.com/watch?v=1Ks0jglacZQ
Key Points
Dubai offers the perfect environment for business. It presents businesses with a wide range of opportunities for different activities and operations ("Doing Business in Dubai"). It was also said earlier that no income and withholding taxes are applied. This will definitely help the investors to create more jobs for people as well as have more money for their capital. Some of the benefits a trader or investor or even worker can have in Dubai are:
• Free enterprise system - In terms of manners in investing, Dubai only has several limitations. The government even encourages businesses to be placed in the said country by giving investors assistance which they need in order to start in the said country.
• No Corporate or Income taxes - this is beneficial to workers and / or investors since they can put the money somewhere else. Companies will be more eager to invest In Dubai since their money is circling around the company and their laborers. They don't have to bother much on paying the country in which they invested on.
• Competitive import duties (4% with many exemptions) - As said, Dubai doesn't collect taxes from businesses in which it makes the country a breeding ground for new businesses to be put up.
• No foreign exchange controls or trade barriers - Dubai doesn't have limitations in terms of trades and exchange as well as with export services. They have several laws such as double tax treaties which help traders to do their businesses with ease. Some laws even provide assistance.
• Highly skilled low cost labor force - some of the labor force consists of people coming from South East Asian countries such as the Philippines in which labor costs are minimum wage to average.
• Straightforward legal framework for companies and businesses - the same way Dubai is attracting tourists; they also attract businesses and investors with fast-tracked regulatory and court system.
• World class telecommunications and IT infrastructure - Having investors such as Microsoft and Oracle in Dubai, they were able to negotiate to have good connections in terms of telecommunications, internet, and computer software. They also created a certain hub in which different companies which handles these lines of businesses. There they could expand it and create more jobs for the people.
• Competitive energy and utility costs - Since electricity costs can't be lowered, the government is looking for better energy alternatives as well as cost-saving solutions.
• High quality and competitively price office space - The price of land in Dubai is very expensive. That's the reason why some would prefer to rent office spaces for minimal cost. Some would invest on buildings and infrastructures which can house different offices.
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