In the year 2009, Yalchin, a German of Turkish descent, was ready to set up his next company. He had already founded a fashion brand that was very successful in the Europe. He wanted to find a place that replicated that success in the Europe. He thought of many options, but he zeroed in on the Middle East. In the Middles East, the obvious choice of setting up the headquarters was Dubai as it is most of the fast-developing metropolitan cities in the world according to the January 2015 report. Dubai is a famous city which was invented out of a desert.
There are many factors that is favorable to business setup in Dubai:
- Dubai- The Entry Point: The markets in Asia and the Middle East are growing at a rapid rate and the major entry point to access these markets is through Dubai. It is one of the cities that is technologically advanced and ever developing steadily for the past decade. Apart from being the central point for the major developing markets, it also has a trading infrastructure and huge market to compliment. It features a big deep water port, Jebel Ali Port, that supplies the trade to the Gulf, Africa, and Asia. Dubai International Airport is the third busiest airport in the world.
- Low-income tax and diverse economy: Neither the individuals nor companies have to pay the sales or income tax in Dubai. This makes it a natural choice for the entrepreneurs to set up business in Dubai. Dubai is insulated from the declining price of oil, which was between $35 and $40 as of press time. Dubai no longer relies on commodities to power its economic growth. The largest sectors in Dubai are tourism and trade; that account for more than 28 percent of the GDP.
- Free trade policies: Many countries around the world are hindered by the strict trading policies and laws that are implied by the countries. Dubai on the other hand, due to its economic advantage have set up special zones that encourage the foreign investment and favour companies. These lenient laws help the new entrepreneurs and businesses to set up their base in Dubai and develop further in the global market.
Thus, we have seen some factors that are the major reasons on why Dubai is the first choice for companies and entrepreneurs to start their business in the city. Some policies and laws implanted in Dubai are found nowhere in the world.