• Employment

    The Dubai Business Environment

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    Dubai has emerged as a key business location in global terms, with a rise in multinational companies choosing to use the emirate as a regional base. There are clearly advantages that have enabled the attraction of such businesses, which might be summarised as follows:

    Location

    The difference in time zones between Europe and the Far East can create complications for those businesses that operate in both regions, but the Middle East acts as an important bridging point. As such, Dubai can offer a gateway to both regions, making it easier for international companies to do business.

    There is also a level of accessibility for those dealing in physical products. Transporting goods to regions of the world is assisted by the geographic advantages offered by the region.

    Access to markets

    That bridging role enables access to significant markets within Europe and the nations of the Far East, but Dubai also borders huge local markets, including the Gulf area, central Asia and Africa.

    Increasing prosperity

    There is an undoubted view that Dubai is “on the up” and this is borne out by a wide range of economic factors. It’s evident that businesses are attracted to the emirate and to the wider region by this notion of success. As this growth continues, it’s natural that an increasing number of businesses should wish to be part of that success.

    Stability

    The foundation of growth in Dubai has been the political stability, enabling investors to approach investments with real confidence. Banking and regulatory systems are well developed, with the government having consistently taken an approach that is seen by many as being pro-business.

    Infrastructure

    There has been considerable investment in local infrastructure improvements, with a focus on transport, telecommunications, energy and industry. The establishment of appealing free zones has also been a key driver in attracting inward investment.

    Lifestyle advantages

    The quality of life in Dubai is undoubtedly high, with the combination of impressive infrastructure, low crime rates, excellent provision of leisure facilities and low rates of personal taxation meaning that it is becoming increasingly easy to attract good quality employees within the location. As a result, the available workforce is booming for employers.

    These lifestyle advantages are important in creating an environment in which professionals are able to network and interact more easily too. Businesses will often locate to regions where employees feel safe and happy; looking at Dubai’s beaches and clean environment, it comes as no great surprise that so many businesses are relocating here. 

    A booming manufacturing sector

    It’s tempting to think about Dubai as a haven for the service sector, but there has been considerable growth within manufacturing too within recent years. The growing reputation for the manufacture of good quality products has boosted the export market for goods produced within Dubai. Manufacturers are finding that they can benefit from the excellent opportunities to gain access to local markets, where levels of demand for manufactured products continue to grow.

    Are you considering doing business in Dubai? We believe that this is an excellent location that is well suited to an entrepreneurial approach. If you’d like to learn more about local legislation and opportunities, then our team would be glad to help.

  • Corporate Law/ Employment

    Dubai Economic Security Centre

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    At the end of April, a new law was passed, with the evident intention of seeking to provide additional financial security within Dubai. The establishment of the Dubai Economic Security Centre has a dual role: protecting investments from criminal activity and also ensuring that financial stability is provided.

    The legislation reflects a continuing awareness that Dubai’s economic future is dependent upon having suitable governance and corporate arrangements in place. As the city becomes an increasing focus for inward investment, moves to offer additional protection are likely to be welcomed.

    In this case, a priority has been to offer confidence in the financial markets, with best practices being implemented, reducing levels of risk and reducing opportunities for illegal activity.

    A number of organisations and entities are subject to oversight from the Centre, including local government authorities that receive a guarantee of a minimum profit level from the government. Similarly, organisations that receive government subsidies will be expected to adhere to more stringent guidelines as a result of the introduction of the new law.

    But the law goes much further than simply being applied to local government and other state authorities. Companies that are engaged in any sort of economic activity within Dubai are also covered, together with those operating within Free Zones. Even charities are covered by the new law. As can be seen, this means that the new legislation is far reaching.

    It’s intended that the work of the Centre should be conducted in a transparent manner and periodic reports will be produced, including statistics on the performance of the Dubai economy. There will also be involvement in a multitude of committees that are tasked with examining economic affairs, while the Centre will have responsibility for monitoring criminal cases where there is an intention to fight against those seeking to undermine the local economy.

    The Chairman of the Dubai Executive Council will be responsible for appointing the Executive Director of the Dubai Economic Security Centre.

    Part of the role of the Centre involves co-ordinating activity with relevant authorities, with records being taken of crimes and offences that relate to this law. Those who collaborate with the Centre (including whistle-blowers) are offered protection, ensuring that there is the chance for information to be passed on a confidential basis. Those providing information cannot be subject to any legal action on this matter, unless it is demonstrated that they are passing false information.

    The law includes a number of specific penalties, including fines and the risk of up to one year in prison for those who fail to adhere. The law supercedes previous legislation in this area.

    If you’d like advice on this new law, or on any other legal topics, then the team here at Davidson & Co would be pleased to help.