Investing in Dubai

Posted on August 19, 2011 by worldinvestmentgroups

It is Worthwhile to Invest in Dubai

Dubai is one of the 7 Emirates of the United Arab Emirates. It is the largest by population and second largest in surface area. UAE is bordered with Saudi Arabia and Oman on the Arab Peninsula and has the largest population with the second-largest land territory by area of all the emirates, after Abu Dhabi Dubai and Abu Dhabi are the only two emirates to have veto power over critical matters of national importance in the country’s legislature.

Historically Dubai used to be a port for the past 200 years and gained further importance in the 70’s and 80’s. However after that period Dubai has reduced its importance in international trade and created industry specific “free zones” including Dubai International Finance Centre and Dubai Internet City.

Dubai International Financial Centre

THE Gateway for Capital and Investment, DIFC is an onshore financial center strategically located between the east and west, which provides a secure and efficient platform for business and financial institutions to reach into and out of the emerging markets of the region.

The DIFC is the Middle East’s’ regional financial center. Although in its developing stage it already has established a presence with major investment banks and financial centers. It initially was created to benefit the economic development of Dubai as well as the rest of the UAE. DFIC established in 2004. Types of firms in the DIFC include banking, asset management, brokerage, reinsurance and financial operational services. Typical benefits of starting a business in the center are 100% foreign ownership on all parts of the established business, 0% tax on profits, no restrictions on capital and foreign exchange repatriation and transparent and a highly developed operating environment. Compared to the majority of tax havens, which are offshore, the DFIC is onshore. In terms of the physical structure of the center, the DFIC has developed modern day offices and technology to attract the best companies as well as smaller financial startups.

The main objective of developing the center was because of the large amounts of money that was invested and spent abroad. In terms of high net worth individuals in the Middle East, the size of the asset pools which are invested abroad amounted to over 1.5 trillion USD. The lack of available liquidity and political risk as well as bad banking practices of the region have caused investors to send their funds in foreign institutions. This has been especially true in the past 30 years when oil prices rose rapidly. The development of the center allows for the efficient process of transferring the funds in a local region as well as allowing potential profits to be locked in the emirates, rather than abroad. The increased liquidity, which the center will create, will also reduce the investment risk in the region and create better credit ratings for local banks as they have more efficient funds available.

Many companies in the Middle East are seeking to make themselves public as a means of raising capital. This has been especially true with the growth in privatization, the fact that Dubai is the 3rd biggest re-export center in the world and the increasing amounts of foreign direct investment in the region by foreign multinationals. The IPO market for Middle Eastern countries are flourishing and DFIC is going to attract a lot of IPO’s and PO’s as well as fixed income and money market originations. DFIC will be the Wall Street of the Middle East. It has also established the Dubai International Finance Exchange (DFIX), which will be the regions main exchange where, equities, fixed income, index products; derivatives and Islamic funds will be traded.

 

Dubai Internet City (DIC)

DIC  is an information technology park created by the government of Dubai in 2004 as a free economic zone and a strategic base for companies targeting regional emerging markets. DIC is a member of TECOM Investments.  The economic rules of DIC allow companies to avail themselves of a number of ownership, taxation and custom related benefits, which are guaranteed by law for a period of 50 years. One model of operation includes 100% foreign ownership; similar to those prevailing in other designated economic zones in the United Arab Emirates. These freedoms have led many global information technology firms, such as Microsoft, IBM, Oracle Corporation, Infor Global Solutions, Sun Microsystems, Cisco, HP, Nokia, Cognizant and Siemens, as well as UAE based companies such as i-mate, Acette, to move their regional base to the DIC. DIC is located adjacent to other industrial clusters such as Dubai Media City and Dubai Knowledge Village.

Dubai Media City (DMC)

Dubai Media City is part of Dubi Holding; it has the same tax-free structure that DIC has to offer. It has been built to boost the UAE’s media capabilities and recognitions as the next “Hollywood” of the Middle East. It has been developed as a conventional market where different businesses work together to form a unit. Dubai Media City has many different business segments not limited to broadcasting; media support services filmed entertainment/production and publishing.

Other Benefits that the Dubai Media City has to offer are fully furnished business units; flexible leasing terms, flexible visa and work permit structures to benefit foreign entrepreneurs. Other similar districts include Dubiotech, which target biotech companies with the aim of growing the regions medical and pharmaceutical research capabilities.

Dubai Media City is the hub for the media industry in the GCC and Middle East, with more than 1,300 companies registered under the Free Zone, from where they serve the entire region.

 

Real Estate Developments.

Dubai is a lucrative destination for investment. Its world-class infrastructure along with a safe living and facilitated business environments make it an ideal place to live and work. Dubai’s population is set to double in the next decade making the demand for Dubai real estate even more viable.

Real estate prices have rapidly risen in the past decade after the government shifted its main revenue sources from oil and trade to services and tourism. There was a major property boom in 2004 to 2006.

Property development in the region is Inland and Offshore. Inland projects include many of the very modern skyscrapers and the world’s tallest buildings. Burj Dubai is the worlds tallest building built by Emaar properties. Dubai Mall next to Burj Dubai is the world’s largest shopping mall. Dubai also has a number of buildings, which are replicates of famous buildings around the globe including the Eiffel Towers. Other original type structures include an underwater hotel and an indoor ski resort.

Offshore developments include Palm Island, which is the world’s largest artificial Island and includes over 30 of the world’s top hotels and 75 kilometers of beaches. Other offshore developments include “The World” which is a group of islands, which form the shape of the globe when looking at it from the sky.

Dubai Metro City

Dubai already has a fully running bus system but to create further accessibility of the above centers and is investing under 4bn USD to develop a high tech transportation system called the “Metro”, which is supposed to be fully operational by 2012.

By: Adma Dababneh

 

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Starting a Business in Jordan

Posted on August 14, 2011 by worldinvestmentgroups

Listed below is a detailed summary of the bureaucratic and legal hurdles an entrepreneur must overcome in order to incorporate and register a new firm, along with their associated time and set-up costs.  It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy’s per-capita gross national income (GNI).

The information appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2010.

No. Procedure Time to Complete Associated Costs
1 1 day JOD 800
2 Open b

compaExecute the company’s formation contract and the memorandum and articles of association.The ny’s formation contract and its memorandum and the articles of association may be executed either before an officer at the Companies Control Directorate (CCD), located at the Ministry of Industry and Trade (MIT), or before a notary public or a licensed Jordanian lawyer. If the documents are executed before the notary public, an additional fee of JOD 15 will apply. The additional fee may range from JOD 500 to JOD 1,500 if done before a licensed Jordanian lawyer.

Bank account; deposit 50% of the capital

 1 day no charge
3 Register the company; obtain registration certificate, and file general assembly first meeting and board of directors’ minutes of meeting at the Ministry of Industry and Trade The promoter can complete the following formalities at the one-stop shop at the Company Registry/ Ministry of TRade and INdustry (albeit at different counters): company registration, tax registration (including obtaining a company tax number for VAT and income tax), registration with the Chamber of Commerce or Chamber of Industry. In addition, the municipality of Amman maintains a counter for license renewal (though the initial license must still be obtained at the municipality).Upon payment of relevant fees, filing for company registration and obtaining the registration certificate is done at the one the company registration at the newly established reception desk. 1 day JOD 10 (Filing Fee), + JOD 10 (Registration Certificate Fee), + 0.02% of Share Capital (Registration Fee), + JOD 15 (Fee For Publication in the Official Gazette)+ JOD 40 File general assembly first meeting and board of directors’ minutes of meeting
* 4 Register for corporate tax, salary withholding tax, and VAT The promoter can register for taxes at the one-stop shop counter at the Company Registry. The company receives a unique tax number. 1 day (simultaneous with previous procedure) no charge
* 5 Register with the chamber of industry or chamber of commerceThe company documents and the respective authorized signatories required to register with the Chamber of Industry or the Chamber of Commerce are:
– Rental contract.
– Formation contract.
– Registration certificate.
– Certificate of authorized signatories.
– Memorandum and articles of incorporation.Annual registration fees levied by the Chamber of Industry or the Chamber of Commerce depend on company capital.		 1 day (simultaneous with previous procedure) JOD 164
6 Obtain a vocational license from the municipalityFirst, an application is filed with the following documents to obtain a vocational license from the municipality:
– planning location map (issued by greater Amman municipality, GAM).
– Occupancy permit (issued by GAM and usually obtained immediately by the landlord upon completing construction).
– A copy of the property deed (usually obtained from the landlord).Second, the GAM officer verifies that the location is situated in the right zoning area and ensures that no property taxes or fees are due. These procedures are performed in the same building. Third, a municipal officer sets up an appointment to inspect the premises for conformance with set requirements. The time before the inspection may vary. Fourth, the property inspection is conducted.Fifth, if the premises are deemed in conformity with the requirements, the file is referred to the competent vocational licenses division. At that point, the following documents are required: (a) the company’s certificate of registration; (b) a certificate of the company’s authorized signatories; (c) the memorandum and articles association; (d) a certificate of registration with either the chamber of commerce or industry; (e) a lease contract (stamped by the GAM); (f) a planning location map (issued by the GAM); and (g) an occupation permit (issued by the GAM).Sixth, for certain occupations, a representative of the Ministry of Health may conduct a health inspection at the company headquarters.Seventh, if the company’s premises is 150 sq. m. or more, or in certain professions requiring civil defense measures, the GAM sends a letter by fax to the Civil Defense Directorate. If all relevant details required to conduct an inspection are included, and if the Directorate does not respond or conduct an inspection within 4 days, the GAM grants the applicant the required vocational license with a caveat: the applicant must agree, in writing, that if the Civil Defense Department approval is not granted, the vocational license renewal may be declined in a subsequent year.		 8 days JOD 200
* 7 Inspection by municipality on safety and health 1 day (simultaneously with previous procedure) no charge
* 8 Register for social security Every business must register with the social security authorities and submit, on a monthly basis, the social security contributions for its employees.Related StoriesMake Money the Easy Way
Start a Business in Dubai
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Start a Business in Dubai

Posted on May 21, 2011 by worldinvestmentgroups

What do you Need to Start a Business in Dubai?

Obtaining a trade license

A trade license is obtained through the Department of Economic Development. Regardless of what business structure you’ve decided on, you will need a local service agent, also called local partner or a sponsor.

Local Partner or a Sponsor

The law requires that you have a local partner who holds the majority interest and can therefore control the business. The local partner, a company or an individual, doesn’t need to contribute to the start-up investment or participate financially.

Money to Invest

When the business is registered, you must show the Ministry of Commerce that you have a substantial sum of money to invest. The required sum varies and is regarded as a guarantee against liabilities; you may withdraw the money shortly afterwards!

Local knowledge is important, you must also consult a good lawyer. An experienced lawyer will guide you through the registration and to protect your interests. This applies whether you’re opening a modest shop or a major enterprise.

Shared Ownership

Local Partner Since non-GCC nationals are not permitted to be majority share holders outside of free zones in the UAE, a system of shared ownership has been developed in which UAE nationals formally own 51% of the company and the foreign proprietor owns the remaining 49%; details of profit and loss distribution are then agreed upon in a separate contract. Local sponsors can be individuals or locally owned businesses. For the most part, a local sponsor will not have any responsibility towards the business but is obliged to assist with all government related procedures such as obtaining permits, trade license, visas and labor cards. The local agent or sponsor’s signature will be required on most official forms.
• Depending on the legal structure of the business, the Department of Economic Development has certain capital requirements for obtaining a trade license. Those requirements are detailed in the DED’s official explanation of legal business structures on its website.
• Remember that certain businesses require separate approvals from varying government ministries before the trade application can be completed. When applying for a trade name, be sure to enquire about any external approvals that will be needed for the proposed business activity. Do note that ‘Virtual offices’ are not allowed by DED which has advised potential investors that any commercial enterprise in Dubai must have a physical address and an actual office.

Many people have developed successful, highly profitable businesses in Dubai. New operations are encouraged by the government and your local partner might be enthusiastically supportive. Export and manufacturing industries are especially strongly supported by government, particularly as regards the acquisition of land on which to construct a factory. If you set up such a business in a free trade zone, of which there are several in the region, it’s granted exemptions from import and export duties, commercial taxes, building and property license fees, land tax and restrictions on the transfer of capital invested in the zone.

An alternative to starting a new business is to buy a going concern, which is a more straightforward process, as it doesn’t involve lodging capital, obtaining sponsorship or registration; all you have to do is agree a price and transfer the ownership of the business.

Doing Business with Arabs

You will meet with hard but polite bargaining Business people and they are expert at bargaining. You need to be completely confident about the contents of your contractual agreement. Arabs are brilliant at finding and exploiting gaps in the content of your Business contract. Arab businessmen meet their obligations fully. The experience of doing business with Arabs is pleasant and friendly.

Remember that Arabs rarely say a direct ‘no’ to a proposition, if the response is ‘Leave it with me’ or ‘I’ll think about it’, there’s a good chance that the project will go nowhere.

Local Chambers of Commerce can advise about start-ups. Winning the confidence and support of a Chamber of Commerce will help your cause. Contact details are as follows:

Dubai Chamber of Commerce and Industry, PO Box 1457, UAE
(Tel. 971-4-221 181)

Federation of UAE Chambers of Commerce and Industry, PO Box 8886, Dubai, UAE (Tel. 971-4-212 977)

 

Dubai Department of Economic Development (DED)

You can contact Expats in Dubai by visiting this Website http://www.dubai.alloexpat.com

 

By adma Dababneh
More Information on Investing in Dubai

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