Dubai is a Global Hub with Bold Reforms
The seamless acquisition of the expansive economic status by Dubai has positioned the city as a global hub for investors. Further, Dubai’s expansion of business permits has attracted emigrants worldwide while the commercial real estate of Dubai has been vigorously augmenting in demand.
Dubai has been fragmenting the traditional chains of economy, a chain that was previously integrated within oil-producing states. As an emerging global investing hub, Dubai has brought a Western economic model through the residency-employment linkage.
In other words, Dubai has brought reforms in its rules and regulations for residency to flexibly cater to the expats’ demands. The eligibility criteria for a “Golden” visa have been opened up.
Executives wiped out the system of local employees’ networks and widened it for expats. Also, the government has legalized the living of unwed couples together and altered the working days between Monday and Friday.
Expansion of Business Services
Lawmakers have finally stepped forward to modify the city’s laws to increase the exodus of ex-pats. Ultimately, the change in policies has attracted millions of young job seekers as well as business investors into the city.
Moreover, Bloomberg disclosed in the latest report that an approximately 30% increase has been witnessed in the established business permits. This accounts for 411,802 businesses, which is high as compared to 2022. While comparing the turnaround of 2021 data to 2023, Bloomberg reveals a 75% higher rate in 2023.
Furthermore, Dubai International Financial Center reported a 23% increment of established companies in 2023 as compared to 2022. The analytics have been revealed in a report earlier this month, showing a 15% rise in the employment rate in Dubai. This implies that around 41,600 individuals are being employed in Dubai’s free zone.
The residency rate in Dubai has been continuously rising whereas, the rate has dropped off in other developed cities like New York and London. Alongside this, Dubai is experiencing a scarcity of office space and an increase in rental rates. This demand, however, has been observed specifically in the financial district of Dubai’s DIFC.
A Home with Economic Opportunities
Dubai has gained central attention due to its continuous alterations in economic activities. Nonetheless, various external factors have actively taken part in boosting Dubai’s economy. Asian bankers have been rushing into Dubai to shake off the lockdown.
In addition, Russians are moving to Dubai after the Russia-Ukraine war for a harmonious life. High-net-worth Indians visualize Dubai as a potential investing hub while the arrivals supplement with employment-seeking Europeans.
Further, certain policy variations have enabled expatriates to easily establish business in Dubai, resulting in economic liberalization. This has significantly boosted the commercial real estate. On the other hand, the proclamation of a public transport project worth $5b has reckoned Dubai’s advancement rate.
The influx of tenants has simultaneously driven Dubai’s real estate engagement with an over 44% increase in property purchases. The city may slump slightly in the coming years because of its abolishing rule of tax-free status. However, the policymakers are seeking an advantageous way to maintain the city’s economic growth.
