STRATEGIC REGIONAL LOCATION

STRATEGIC REGIONAL LOCATION

Dubai is a global business hub and gateway to growth markets and through the concerted efforts of the Dubai Government, has become the preeminent global location for fast-growth businesses that transcend geographical barriers. With future-ready infrastructure and a growth-focused mindset Dubai has capitalized on its geographical location advantage, giving businesses that are based here easy access to two-thirds of the world’s most attractive growth markets. Dubai sits at a strategic geographic crossroads, connecting East and West, North and South, providing a natural bridge between producers, manufacturers and consumers of some of the world’s most consumed commodities.

Regionally, a well-earned reputation for stability, reliability and as a low risk environment makes Dubai the perfect gateway to the Middle East, Asia and Africa. The city consistently ranks at the top of the region on government effectiveness, political stability, quality of regulation, and the rule of law, and provides a strong strategic regional location for any company looking to international markets for growth.

A REGIONAL BUSINESS HUB WITH GLOBAL REACH

Dubai is one of the world’s leading business hubs, and with a business-friendly mindset, is the preferred location for the global and regional headquarters of some of the largest corporations in the world. A strong regulatory framework, an economic and social resilience, and a focus on innovation and technology to drive productivity and human well-being make Dubai the hub of an evolving global business firmament.

With its ports and airports serving as some of the most active gateways into the region for business, commerce and tourism, it is the chosen regional headquarters for 70 percent of Fortune 500 companies. Integrated free zones and continuous large infrastructure investments help to keep Dubai as a preferred regional supply chain and distribution gateway.

ACCESS TO GROWTH MARKETS

Strategically positioned between East and West, Dubai is at the epicenter of trade flows as economic activity inexorably shifts eastward, becoming the hub through which the world’s wealth and talent flow. With a geographical position that makes it the center of the physical world, Dubai has built on this advantage by providing efficient connections to key growth markets, regionally as well as globally.

As more and more businesses transcend geographical barriers, Dubai has anticipated and implemented a trade-friendly environment that positions it as the key gateway to the region and a hub for global trade flows. Whether you want to enter the UAE or GCC market itself, or need a gateway to the wider Middle East, South Asia, Africa or Far East, Dubai is the perfect strategic regional location.

• China - The UAE, with excellent diplomatic relations with both the east and west, has become the next gateway for the flow of business to and from China. The country is already home to over 4,000 Chinese companies and in 2019 China was Dubai’s top trading partner with AED 150 Billion of goods being traded between the two countries. Continued port infrastructure development projects are expected to improve connectivity with China’s Belt Road Initiative infrastructure and lead to an increased flow of exports and imports through the UAE across Central Asia, Eastern Europe, South Asia and China.

• Africa - In 2019, Africa accounted for AED 167 Billion of Dubai’s external trade, more than that of North and South America combined. The UAE as a whole is the African continent's second-largest foreign investor after China. Most of the goods in question travel via Jebel Ali Port with DP World, which operates in seven African countries. Africa accounts for 10% of the port giant’s global revenue and this is growing. African companies are attracted to Dubai because of its expertise in areas such as infrastructure and construction. There are 21,000 companies from Africa operating in Dubai, incentivised by tax breaks as well as access to visas and Islamic finance.

• South Asia - South Asia, which includes people from India, Bangladesh, Pakistan, Nepal and Sri Lanka, accounts for almost 60% of the total UAE population, meaning that the UAE is a ready-made market for products from these countries. India was Dubai’s second biggest trading partner in 2019, only behind China, with AED 135 Billion of goods being traded between the two countries. Dubai provides a springboard for companies from South Asia to reach markets further afield in Europe, Africa, the Far East, and wider Middle East.

• UAE -  With a population of almost 10 Million people, the UAE is an attractive market for international businesses in and of itself. Much of the population has a relatively high spending power and the country as a whole has the seventh highest GDP per capita in the world at over $74,000 USD. The UAE was ranked the eighth most attractive market globally for retailers in the Arcadis Retail Operations Index which ranked 50 international markets based on key factors that retailers look for when choosing to enter a market. The UAE was ranked first in the Middle East, with retailers benefiting from the strong infrastructure and ease of operation.

• Middle East - In an environment of increasing geo-political uncertainty, Dubai continues to be the rock of political, economic and social stability in the region, making it the perfect location for any company that wants to access the Middle East market. Out of the 196 Fortune 500 companies that have a dedicated office in the Middle East and Africa to service the region, research company Infomineo found that 138 of them (70 percent) had their MEA headquarters in Dubai. A city built on an ambitious vision of the future is a natural home for companies looking to expand their footprint in the region.

A RE-EXPORT HUB

Dubai has a historical reputation as a trading hub for all kinds of commodities and has emerged as one of the most important centers of re-exports at the regional and global level. In fact, re-exports make up a particularly large amount of trade through the city, over 30% in 2019. It turns out that Dubai is not only a popular stopover for tourists, but also for goods that are in transit on their way to other countries. Billions of dollars of commodities come into Dubai before being traded off to a whole host of countries around the world. From consumer electronics like TVs, smartphones, and computers, to nuts and spices, everything is traded.

Dubai’s prime geographical location makes it a great place to link buyers and sellers from Asia, Europe, Africa, and even further afield. Aside from the central location, Dubai's easy seaport access, favorable government regulations, and tax-free environment have helped establish the city as the leading trade center in the region. For re-exporters of all kinds, Dubai has all the ingredients you need to grow your business in new markets.