Dubai has always been a place to build your financial plans and see it realized. It was always a place making it easy to live and grow your financial portfolio and family lifestyle.
However, with the global economic environment becoming challenging and its related impact on the local economy, as usual, pragmatic decisions were taken and implemented in good time. The spate of announcements starting from long term visa for investors, reduction in fees for labor services, visa related announcements for dependents and relative work permits, only demonstrate the pro-active drive of the country to maintain its premier position as an expat magnet.
How does it make it easy to live and grow for businessmen?
For businessmen, it means a fantastic opportunity to set up business in the gap timezone for east and west. The open economy and ability to freely transact in multiple currency, plus availability of multiple free-zones to set up 100% owned businesses. The cost of setting up and running a business has gone down significantly over the past few years, primarily on account of reduction in rents. This has been further supported by reduction in rates for government services as per recent announcements as highlighted in our last blog – “Boost to Bottomline – over 50 % drop in work permit costs”.
The latest announcement on allowing males to work on relative work-permit is a game-changer. (you can read the related news article on Khaleej Times here. Till recently, only females were allowed to work on relative work permit based on NOC from the spouse being their sponsor. This announcement, now makes it possible for both the male and female to work on relative work-permit. The attraction for relative-work permit is that the cost to employer for hiring a person on relative work-permit is reduced to the extent of 1. Visa costs, 2. Medical tests for visa, 3. Health insurance for Visa and 4. Emirates ID cost. The last three are required for applying for Visa and not work-permit.
How does it make it easy to live and grow for employees?
The previous section has highlighted how the costs of doing business is going down in the region. This is expected to help existing businesses improve their bottom line and grow, while also focusing on making this place attractive for new businesses to set up shop. This translates to more job opportunities. The focus is on skilled labor, consequently, qualified and skilled resources will have significantly better employment opportunities. Plus the cost of recruiting these skilled resources has got reduced for employers both for the work permit and with the relative work permit option for employee visa. This has a two fold benefit for employees to be able to get employment and salary packages as desired.
It needs to be realized that the region is a global player and any global ups and downs has a direct impact on the economy and businesses in the region, though not directly proportional, but as is to be expected, relatively proportional. This requires businesses to think globally, to build a more resilient portfolio of products and services, which are constantly fine tuned to meet the changing global marketplace. There have been rapid changes over the past few years leading up to the Expo 2020. These measures have been implemented at the right time to leverage the opportunities presented by an event like Expo 2020 to the maximum.
The already existing excellent infrastructure and law & order environment is further boosted by the above factors to it an attractive proposition to an expatriate to set up shop or home in this part of the world.