Dubai has become one of the most rapidly growing economy in the world. The reason is the investor confidence in the government initiative and commitment toward making Dubai most modern and sought after place to be.
Setting-up in Dubai
In the UAE, financial activity is regulated by individual emirates as well as the Federal Government. In Dubai , the authorities are well ordered without being overly restrictive. Dubai offers in service conditions that are among the most tolerant and attractive in the region. There are many opportunities open to international companies in search for a business relationship with Dubai . Apart from forming a trading relationship, for many companies there are unique advantages in being dynamic to research market prospects, create contacts, coordinate with customers, and monitor the details of any transactions and orders secured. Having a presence may influence considerable business advantages in the Middle East .
Businessmen in the region prefer to deal with someone they are acquainted with and trust. Personal relationships are express in doing business in the Arab world than they are in western Europe or . Also, the trade patterns of some countries served by Dubai tend to be volatile, creating a need for first class market intelligence and information.
Administered by the Federal Ministry of Labour and Social Affairs, Labour Law in the UAE is based on the International Labour Organization’s model. UAE Law No. 8 of 1980, as amended by Law No. 12 of 1986 (the “Labour Law”) oversees most aspects of employer/employee relations, such as hours of work, leave, termination rights, medical benefits and repatriation. The Labour Law is protective of employees in general and supersede contradictory contractual provisions agreed under another jurisdiction, unless they are beneficial to the employee.
The Ministry issues a specimen form of labour contract in Arabic which is widely used, but other forms of contract are allowable, provided they comply with the Labour Law. End of contract gratuities are set at 21 days pay for every year of the first five years of service and 30 days for every year thereafter. Total gratuity should not exceed two years’ wages. Employees are entitled to pro-rated amounts for service periods less than a full year, provided they have completed one year in continuous service.
Dubai Free Zones
Dubai ranks as the leading industrial location in the Gulf. In particular, the Jebel Ali Free Zone provides matchless incentives to investors.
100% foreign ownership (N.B. outside the Free Zone, 51% local participation is required unless the business is 100% AGCC owned); Exclusion from all import duties; 100% repatriation of capital and profits; Freedom from corporate taxation, as applied throughout Dubai, with the added bonus of a renewable 15 year guarantee in the Free Zone; Plentiful inexpensive energy; Easy and efficient employment procedures ensuring the availability of a skilled and experienced workforce at competitive cost; A high level of administrative support from the Free Zone Authority; Fast growing domestic demand offers good opportunities for joint venture manufacturing and processing operations outside the Jebel Ali Free Zone. A Free Zone Establishment – or FZE – is an establishment formed and registered in Jebel Ali and regulated solely by the Free Zone Authority.
Dubai is rapidly growing as an international financial services center. The financial services industry in the Emirate continues to increase and in the period between 1990 and 2000 grew at an annual compound rate of over 12%. The sector has been assigned by the Dubai Government as a key growth sector and is expected to grow from 10% of the city’s GDP (a contribution equal to that of oil) to 20% thru the creation of the Dubai International Financial Center (DIFC).
The vision of the Dubai International Financial Centre is to position Dubai as a universally recognized center for institutional finance and as the gateway to the region for capital and investment. DIFC will introduce a fully transparent operating environment complying with global best practice, internationally accepted laws and regulatory processes and a world class independent regulatory agency that will work with major global jurisdictions and their financial regulatory agencies. To attract investment, DIFC will offer tax-free operations, with 100% foreign ownership and no U.A.E. employment laws.
Jebel Ali Airport
Dubai International Airport City project at Jebel Ali announced; work to begin by February
The Airport City project stretches 140 square kilometers and will consist of, not just an airport, but also numerous smaller cities which will provide to the financial, industrial, service and tourism industry needs related to the aviation commerce. The center of the city will be one of the world’s largest airports.
The airport at Jebel Ali will be constructed 40 kms from the existing Dubai International Airport bordering to Jebel Ali Port and Jebel Ali Free Zone. It will be bounded by a strategic road network connecting the airport to the different emirates and some of the GCC countries.
The project will be done in stages. The first stage, will cost US $ 547 million (Dhs 2 billion) includes the Logistics City and one runway. When finished, the airport will have the facility to handle 120 million passengers and 12 million tones’ of shipment annually. All facilities will be operational to handle latest generation aircraft including the A380.
The new airport will consist of a well designed and incorporated ‘city’ that will form the modern core for aviation and business industries, and at the same time provide to the general public and tourist. The urban setting will be structured into ‘cities’ featuring aviation, logistics, commercial, residential, educational, recreational, technology and entertainment facilities. The Dubai International Airport City at Jebel Ali shall comprise of the following.
Dubai Logistics City
This will be the world’s largest comprehensive logistics center for air, sea and road service, located next to Jebel Ali Port and Free Zone.
This will be the economic and business heart of the airport city outlining a spectacular new Dubai skyline. This will be a high rise area of more than 850 towers (50-300 meters in height). It is said to become the future financial and business centre for top companies.
This is predicted to becoming the regional headquarters for leading companies working in the aviation industry, which includes suppliers, maintenance specialists, manufacturers etc.
Science and Technology Park
This will cater to the industrial and technological sector.
There will be a diversity of accommodations from lavish estates and large apartments to inexpensive developments and airport staff lodging. Residents will have commercial and community services.
This is expected to be the region’s largest golf course enclosed by high-rise residential towers as well as villas in a structure of clusters.