+971 50 291 4059
+966 56 233 0183
Dubai‘s transformation into a global hub for tourism and business highlights the limitless potential for business in Dubai, attracting investors and entrepreneurs from around the world. In the 18th century, Dubai was a humble fishing village, serving as a tributary to the Bani Yas tribe of Abu Dhabi. Under the visionary leadership of the Maktoum family, particularly Obeid bin Saeed and Maktoum bin Butti, the city began its transformation. Over the last three decades, Dubai has evolved into a global hub for tourism and business, boasting the world’s tallest building, the Burj Khalifa, and the largest mall, the Dubai Mall. Today, millions of expatriates from across the globe call Dubai home, contributing to its vibrant economy. The city is also recognized as one of the safest and cleanest in the world.
The Architect Behind Dubai’s Transformation
Contrary to popular belief, Dubai’s rise to prominence wasn’t solely due to oil wealth. The magic lay in the visionary leadership of Sheikh Rashid bin Saeed Al Maktoum, who ruled from 1958 to 1990. In 1961, following the devaluation of the Indian rupee, Dubai adopted the Gulf Rupee as its currency alongside Qatar, while Abu Dhabi chose the Bahraini Dinar. Oil production in Dubai began only in 1969, but Sheikh Rashid had already laid the groundwork for a diversified economy.
That same year, he initiated the construction of Port Rashid, a 15-berth deep-water port that would establish Dubai as a significant transshipment hub. Sheikh Rashid’s reign also saw the development of key infrastructure projects, including the Al Shindagha Tunnel (1975), Jebel Ali Port (1979), and the iconic Dubai World Trade Centre (1978). These projects paved the way for Dubai’s transformation into a global city.
Continued Growth Under Maktoum and Mohammed bin Rashid
Sheikh Rashid was succeeded by his son, Sheikh Maktoum bin Rashid Al Maktoum, who led Dubai from 1990 to 2006. Since 2006, Sheikh Mohammed bin Rashid Al Maktoum has continued to drive Dubai’s growth, cementing its status as a global metropolis. Today, oil contributes less than 1% to Dubai’s GDP. Instead, real estate, trade, tourism, and financial services are the main pillars of its economy.
Dubai’s tax-friendly environment is a major draw for investors. The city imposes no income tax, and a VAT of only 5% was introduced in 2018, which is still minimal compared to Western economies. Additionally, the absence of property taxes has encouraged foreign real estate developers to build luxurious skyscrapers.
A Global Haven for
Investment
In 2002, Dubai took a groundbreaking step by allowing foreigners, irrespective of religion or nationality, to purchase real estate. This policy triggered a surge in foreign investment, with unprecedented amounts flowing into the real estate sector. Today, approximately 85% of Dubai’s population consists of expatriates, a testament to its inclusivity and appeal.
The ease of doing business is another factor that has attracted global investors. Dubai established Special Economic Zones, offering 100% ownership for businesses both in these zones and on the mainland. These measures have made Dubai a hotspot for entrepreneurs and multinational companies.
Conclusion
Dubai’s tax-friendly environment is a major draw for investors. The city imposes no income tax, and a VAT of only 5% was introduced in 2018, which is still minimal compared to Western economies. Additionally, the absence of property taxes has encouraged foreign real estate developers to build luxurious skyscrapers.
Not sure were to begin ?
Schedule a free consultation with our Senior Business Consultant
Jassim Karadan, Senior Business Consultant
Start your business in Saudi Arabia with J K Management Consultancy. From licensing to setup, we provide expert guidance to help you establish and grow your venture in the Kingdom’s thriving economy. Your success is our priority
WhatsApp
