Business and Management
Submitted By longthon1704
\OPEN AND FREE ECONOMIC SYSTEM .
Dubai's open economic policy, minimal government control and private sector regulation have played an instrumental role in attracting vast foreign direct investment (FDI).
In order to further encourage foreign investment, a number of economic free trade zones have been established across the UAE, offering foreign businesses attractive concessions and a number of investment incentives. The main concessions and incentives offered to entities that establish in the free zones include 100 percent foreign ownership (foreign ownership restrictions apply across the UAE outside of the free zones) and the guarantee of zero percent taxes for a specified period of time (usually for 50 years).
Dubai has more than 20 free zones catering to a wide range of business sectors or activities, such as media (Dubai Media City), manufacturing (Jebel Ali Free Zone) and information, communication and technology (Dubai Internet City).
Dubai’s economy has been kept open and free to attract investors and business. Government control and regulation of private sector activities has been kept to a minimum. There are no direct taxes on corporate profits or personal income (except for oil companies that pay a flat rate of 55% and branches of foreign banks that pay a flat rate of 20% on net profit generated within Dubai). Customs duties are low at 4% with many exemptions, 100% repatriation of capital and profits is permitted, there are no foreign exchange controls, trade quotas or barriers and a stable exchange rate exists between the US Dollar and the UAE Dirham (US$1.00=AED 3.678). Liberal visa policies permit easy importation of expatriate labor of various skill levels from almost all over the world.
International companies setting up in Dubai can obtain significant cost advantages not generally available internationally. The major factors are:
• No foreign…...