Alliance-dubai.net - 5 reasons to start a factory / production in Dubai, the UAE

5 reasons to start a factory / production in Dubai, the UAE

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In this analytical overview of possibilities and reasons for starting new production line or transfer of an existing production to Dubai or other Emirate of the UAE, we provide the analysis of the most important reasons and benefits for making such decision.

Any production is always striving to achieve the following objectives

  • Reduction of costs for purchase and servicing of equipment.
  • Saving on energy costs.
  • Reduction of labor costs.
  • Decrease of transportation / logistics costs.
  • Tax optimization.

For all objectives Dubai, the UAE is ideally suited.

1. In terms of purchase and maintenance / servicing of equipment – especially when importing equipment to Free Trade Zone in the UAE intended for the factory, no customs import fees or taxes are charged for the imported equipment and machines. In addition, due to low labor costs, substantial part of production chain can be facilitated without the need of purchasing equipment – by taking advantage of labor force.

2. In terms of energy – Dubai and other Emirates of the UAE offer energy resources at one the most competitive prices in the world.

3. As it has already been mentioned the labor costs are far lower in comparison with other industrialized countries. In addition, there is no taxation of wages and compulsory payroll deductions.

4. Dubai, the UAE is one of the most developed sea and air logistics centers in the world with all its benefits for business in terms of costs and swiftness of delivery of materials, goods and components. This factor has positive effect on efficiency of business development in general, and also saves considerable financial resources of a factory, as financials turnover time decreases significantly thus saving money and making funds available again faster.

5. Tax optimization – from this point of view Dubai is practically unique. Companies and production facilities located in Free Trade Zones are exempt from income tax, VAT and withholding tax.

Our company has genuine practical experience in the region in term of  various projects support and provides full range of supporting services when starting factories / plants / industries in Dubai and other Emirates in the UAE – Sharjah, Ras Al Khaimah, Fujairah, Abu Dhabi, etc.

Within the support of  industrial projects we provide:

  • Analysis of plant / company project from the point of view of its optimal location in the UAE.
  • Selection of ready premises or plots for production facilities.
  • Preparation of all documents for preliminary approvals for construction of production facilities or equipment installation in available premises.
  • Obtaining all permits and approvals for import of equipment.
  • Obtaining permits for installation and commissioning of equipment.
  • Obtaining all final permits for company business.
  • As for company business:
  • Analysis of produced products market.
  • Assistance in selecting suppliers.
  • Assistance in promotion of sales of finished products.

In addition to the aforesaid, the following additional services are provided:

Registration of legal person in the UAE with all necessary permits and licenses.

Procurement of resident visas for owners, directors and employees.

Assistance in preparation of shareholders’ agreements and other documents required for company business as well as launch and operation of businesses.

In some cases, we also provide services involving maintenance by one of our managing directors of production process for particular period upon launch of production or onsite monitoring of company operations.

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