Global variables have caused many markets to become less certain in recent months.
Although traditionally Dubai has enjoyed an enviable reputation as an attractive spot for business start-ups and the pursuit of entrepreneurial activities, there have been concerns in some quarters that the country's continual success in these areas could be beginning to diminish. The Dubai government remains committed to ensuring the health of the economy, evidenced by a string of initiatives which have been put in place recently, in order to ensure that Dubai retains its place as a focus for business start-up and development. Many of these measures appear to have been successful, with recent figures showing healthy business growth.
Recent figures from the DED indicate that there were more than 24,000 registration and business licensing transactions in just a single month (July 2018). These included around 12,000 renewals (a good indication that businesses are continuing to thrive), as well as around 2,100 initial approvals for businesses. What these figures appear to indicate is the continuation of Dubai's prominence as a centre for entrepreneurial activity.
One of the main aims for the Dubai economy under the current government is to ensure that the country remains a competitive location for businesses to operate in. Several initiatives to keep the competitive edge have been introduced in the past few months, such as positive investment and residency changes, as well as alterations to immigration and employment regulations.
Commentators suggest that one of the most influential governmental changes planned is the move to allow companies to be 100% owned by foreign investors. Previously, outside of free zones, expats or foreign investors were required to enter into a business arrangement with a Dubai national or nationals, who would need to own at least 51% (a controlling interest) in the business. The move towards allowing foreign investors to entirely own a new business is likely to significantly improve the appeal of Dubai as a location for foreign investment and business enterprise.
With so many measures being put in place to make Dubai of particular interest to international entrepreneurs, it is expected that a considerable amount of global talent and entrepreneurship will be attracted to the country. A rise in business start-ups and economic growth not only increases the government's revenue through taxation, it also provides attractive employment opportunities, many of which will command a generous salary. An influx of well-paid workers would contribute greatly to Dubai's economy, supporting industries such as construction and the services sector.
In 2018, the IMD World Competitive Centre released Dubai's competitiveness report, ranking it first in the Arab Nations for economic growth and fourth globally. With continual growth in infrastructure and construction, the country's prudent legislative changes continue to create an attractive investment arena that both engages and retains premium business talent. These policies have helped to secure Dubai's place as a world leader in economic success.
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