Zero taxation and a high standard of living are major attractions for Dubai’s huge foreign workforce.
At the end of 2003, The UAE had a labour force of about 2.2 million, with private sector employment accounting for about 52 per cent of the total. Of this workforce, about 92 per cent were foreign workers, as were 98 per cent of employees in the private sector.
Who moves there?
Traditionally, the British have always had a foothold in Dubai. In the past, businessmen came to the area as part of Britain’s political staff, or as merchants and seamen using the port.
As Dubai moved towards independence in 1971 (the year the United Arab Emirates was formed), British business grew, to the extent that thousands of Dubai companies are British-backed, and still more are run by Britons.The UK expats are by far the largest group of immigrants, but Russians are showing a lot of interest, as are other Europeans – predominantly the French, Swiss, Dutch and German. Germany is potentially a huge market because the Germans already know the place well through their tourist links. Approximately 90 per cent of the Dubai population are people who have relocated there, with 70 per cent of the workforce coming from the subcontinent.The rest are Arabs and
Europeans – most notably British.The city now plays host to 150 nationalities, including large communities of Europeans, South Africans and Australians. Each new wave of migrants brings a new level of business acumen.
Why move there?
Dubai shows an amazing capacity for economic growth and expansion.The economy is currently growing at a rate of ten per cent per annum.The diversification of Dubai’s economy s a major reason for this growth, and the flourishing tourist sector and the retail, wholesale and transport sectors have made the economy buoyant.The business climate is optimistic, and expansion is forecast to continue at ten per cent. Wholesale and retail trade is the largest sector in terms of employment, accounting for 20 per cent of the total workforce, followed by construction at 17 per cent and manufacturing at 14 per cent. Dubai is fast becoming a major attraction for young British professionals, and with the official unemployment rate still at zero per cent, foreigners can easily secure jobs or become self employed. Immigrants come for the beaches, bistros and bars as much as for the business. Dubai is ax-free, the lifestyle is excellent, opportunities for advancement in almost every field are amazing and crime is non-existent. For most Westerners, the ridiculously high standard of living is the real bonus.The freehold property market has added to the stunning array of housing options, and the development of world-class tourist facilities means the lifestyle for expats is sumptuous. Business practice in Dubai is now the most sophisticated in the entire region. Dubai is growing fast, and the market offers fantastic opportunities for skilled workers.The sponsorship system has also changed.Where you once had to have a local UAE national as a partner to do business, the introduction of free zones like Dubai Internet city, Dubai Media City and Jebel Ali Free Zone allows 100 per cent foreign ownership. Indeed, new World Trade Organisation regulationscoming into force in a couple of years will abolish the necessity for local sponsorship outright. Any difficulties found in setting up in Dubai are minimal when compared with most markets in the West. Regulation is limited, taxation is nonexistent, and the number of serious movers and shakers is small. Business relationships can be set up fast, and you can meet everyone of importance, and of any nationality, within a year.