Every person, who visits the Dubai, Arab Emirate Emirates, for the first time, first of all is impressed by the incredible development of the commercial sector and the extent of range of the modern tourism industry. The United Arab Emirates, in a very short period of time, had transformed from the ordinary Middle East country into the leading and highly-developed economic state. The incredible rates of growth, the right policy of the state and the high standard of living in the country - all these together reveal the secrets why Dubai is developing in almost all vectors. Today, a lot of foreign businessman and investors, who are attracted by the favorable conditions of business on the territory of free trade zones, are working here. The current inflow of the investment assets into the country had long ago exceeded the billions of dollars mark.
What contributes to such a rapid rates of growth, why Dubai is developing and growing, in spite of the all global world difficulties and financial crises. The current government understands that it is impossible to build an economically strong state, using only the resources of raw materials. For this reason, all the income gained from the export of oil, are immediately designated to the development of the existing infrastructure.
Since the 70-ies of the last century, the UAE authorities are implementing the active state policy which is aimed at the attracting of the foreign capital and investments. First of all, the efforts on creation of the modern infrastructure, which had enabled to develop actively the banking sector, to finance and to expand the construction of business centers, hotel complexes, residential premises and etc, was started. This government policy had led to the construction of the modern Free Economic Zones. The preferential customs and tax terms had become the main reason of the growth of the investment attractiveness of the UAE, and it gives a full understanding of why Dubai develops so actively.
The comfortable conditions for carrying on business contribute to the influx of new capital into Dubai and into the other regions of the country. The active business development is observing in all the segments of the market. The modern business thrives in the UAE in its various forms, such as hotels business, tourism, selling of luxury real estate, passenger transportation and freight services, import of household appliances and cars. All this develops and simultaneously brings a steady income for the state.
The shortest payback periods of business projects and full optimization of tax and customs duties attract foreign investors into the UAE. The authorities of the Arab Emirates had chosen the policy which fully corresponds to the concept of the economic development on the basis of the mutually beneficial cooperation with foreign partners. And this policy has already yielded rich rewards – nowadays a lot of foreign investors confidently entrust their financial assets to this country and invest in its development. It allows to understand why Dubai develops with such a rapid paces.
The level of service in Dubai is known worldwide. Here is the perfect balance being in place, when there is no bothersome staff, but at the same time all your wishes and requests are taken into account and satisfied at most. Such attitude is typical for all the sectors regardless of the area of service. The local companies and entrepreneurs adopt the most advanced international experience in the service sector, what also contributes to the development of the city as the modern civilized society.
The policy of optimization of the tax payments and customs duties is among the major factors which contribute to the active development of the country. All this creates all the preconditions for creating a civilized market with far-reaching prospects. The banking sector also develops very actively. The modern banks in Dubai are prepared to consider the option of financing the existing business and can provide businessmen with the most modern tools in the banking sector. All this, in its turn, opens up the new possibilities for growth and matching perspectives for business.
The use of the company, which is registered in the UAE, is the most optimal combination of effective tax planning, profitability and potential for growth. Taking into account all the aforesaid, we can draw only the one conclusion why Dubai develops – all it happens owing to the correctly chosen policy of the country and the great desire to make one’s own environment comfortable and safe.
Formerly the oil industry was the basis of the economy, but as of today the country's economy is heavily diversified whereby the financial transaction, the construction of major facilities, the housing market and the market of modern technologies are the key elements in the economic success.
Summing up our research, why Dubai develops, several key points that contribute to such an active and effective development can be singled out:
- Balanced and right internal state policy;
- Investing the funds and capital in the active development of infrastructure in the various economic sectors;
- Tolerance to the foreign citizen who live and work in the UAE;
- Preferential conditions for business development. The absence of tax and customs fees;
- Inflow of new capital and development of the companies, and as a consequence, the development of the whole country.
Dubai is the business city which provides its residents with all the opportunities for active development, and develops itself together with them.