Global strategy
There are no corporate, private and income taxes; Dubai's banking system is considered one of the most advanced in the world, and the confidentiality of investments is protected by special legislation. In addition, foreigners who register a company in the emirate can obtain a residence permit.
All these advantages were established by the authorities within the framework of the Dubai Strategic Development Program. Where the future begins" and have already brought their results. The plan provides for a threefold – up to $108 billion – increase in Dubai's GDP by 2015 and an increase in GDP per capita to 41%.
To the glory of the tourist center of Dubai, the title of the center of business life should be added, and for this purpose, the sheikh attracts businessmen and financiers in every possible way, using the strategically successful location of the emirate on the border of the European, Asian, African and Middle Eastern markets.
The creation of free economic zones (FEZ) helped to interest large corporations in Dubai, on the territory of which investors are given the opportunity to register companies with 100% foreign capital under a simplified scheme, while companies are exempt from taxes for a long time. The first of the FEZ in Dubai was The Jebel Ali Free Zone, established in 1985. The success of this initiative (by 2004, more than 2,200 companies from 100 countries of the world were already working here) pushed the authorities to create other free zones in which organizations were already united in areas of activity. So, now there are Dubai Technology, Electronic Commerce and Media Freezone, Dubai Cars and Automotive Zone, Dubai Health Care City, Gold and Diamond Park and other FEZs.
The Dubai Internet City projects, where the offices of the main IT business players - Microsoft, Dell, Siemens, HP, Oracle and IBM – are located, and Dubai Media City, where the offices of such media giants as CNN and Reuters are located, are excellent proof of the growing interest in Dubai from the business side.
The favor of such major international companies encourages residents of the UAE themselves to invest in Dubai, and the stability of Dubai's economy in the face of unclear prospects for many world markets looks very attractive to foreign investors.
Dubai attaches great importance to major business events – conferences, international exhibitions, seminars and educational courses, during which entrepreneurs from different countries get acquainted not only with each other, but also with the emirate, as a result, a kind of business community is created, the center of which is Dubai.
The main exhibition venues are located on the territory of The Dubai International Convention and Exhibition Centre in The Dubai World Trade Centre, which also manages hotels and the airport. More than 60 exhibitions on various topics such as health, oil and gas industry, construction, interior design, tourism and education are held here annually.
Everything for business and for life
According to a report by IFA Hotels & Resorts, due to the steady economic growth of Dubai, over the past five years, the cost of renting commercial space has increased by more than 130%, and despite this, the demand for offices exceeds the supply – especially for premises of the first and second categories. Now all new projects of business centers are being opened, thus it is supposed to solve the problem of shortage of office space. The attention of new investors should switch from existing business centers to new ones, for example, Dubai International Financial Centre (DIFC), Burj Dubai and Business Bay.
The development of the office real estate market is also reflected in the housing market of various classes, because companies need to accommodate their employees and top managers, as well as their families. Projects where you can work, live and relax, with offices and apartments, entire floors of restaurants and boutiques, swimming pools and fitness clubs are in great demand. Around such centers, large landscaped areas with gardens, shady alleys, fountains and reservoirs are usually assumed.
The DIFC District project in the Free Economic Zone was launched in 2005. The complex includes many buildings with offices, apartments, hotels, shops, as well as an art gallery and an art center. Several million square meters of office and retail space are put up for sale here.
The whole world is watching the construction of Burj Dubai: this tower is already the tallest in the world. According to the developer, it will house residential and commercial premises, a hotel, entertainment centers and the world's largest shopping mall Dubai Mall.
The Business Bay Commercial and Business Center will occupy about 60 million square meters. m on the shores of Dubai Creek Bay. All conditions for a comfortable life and work will be created here: the project involves the construction of business centers, hotels, apartment complexes among landscaped gardens, canals and picturesque walking paths.
Dubai ranks second in the world after Moscow in terms of the number of commercial real estate under construction. "The deadline for the completion of most commercial facilities is scheduled for 2008-2010," says Stuart Cassidy, "and the results of auctions for the sale of space demonstrate a huge interest in these projects from international and eastern companies." According to the Dubai Land Department, more and more investors are moving into the commercial real estate sector, due to which the demand for it and its liquidity have remained very high for several years.
According to the company's forecasts, by 2009 the total number of office space will exceed 5 million square meters. By 2025, about 3,000 buildings are planned to be built in Dubai, which will be given over to housing and offices. Dubai is already ranked 8th in the ranking of cities with the most expensive commercial real estate, ahead of New York, which closes the top ten. But for now, offices here are still somewhat cheaper than in Moscow, Paris and Singapore.
The popularity of the projects under construction is evidenced by the auction held this summer by IFA Hotels & Resorts and Nakheel. The remaining 15% of office and residential premises in 10 finished buildings in one of the most prestigious areas of Dubai – The Palm Golden Mile on the "trunk" of The Palm Jumeirah were put up for auction. The Palm Golden Mile includes residential, retail and office spaces that non-residents have the right to purchase on freehold rights. The total amount of transactions concluded as a result of the auction was approximately $81.74 million.
Large companies will also be interested in the large International City project, the completion of which is scheduled for next year. The project, which will center on several office buildings, will consist of four key zones: Central District, Residential District, Lake District and Forbidden City. 11-storey office buildings will be built in the Central District, spacious retail and warehouse premises will be provided on the territory. International City is located in Dubai's Al-Warsan district, on Emirates Road, 12 km from Dubai International Airport and next to the Dubiland Amusement Park under construction.
Another business district of Dubai is Maritime City, which is located near the port of Rashid, next to The Palm Deira. The entire Maritime City, which occupies 22 hectares, is dedicated to commercial activities, one way or another related to shipbuilding, maritime transportation, etc. Here, from the point of view of office space, the Verde project, which includes a 33-storey office tower, is interesting. During the construction, advanced energy-saving and environmentally friendly technologies are used, the latest climate systems have been developed, gardens, gyms and recreational areas are provided for people working on the territory of the center. There is also all the necessary infrastructure for life: wellness centers, a swimming pool, a children's center, restaurants.
Another interesting object under construction is the Dubai Pearl Tower in Dubai Media & Technology Free Zone, right in front of The Palm Jumeirah. Now this project is implementing premium class office space, luxury apartments, penthouses, villas and "heavenly palaces" on the upper floors of the central tower - with private gardens, swimming pools and stunning views of the Persian Gulf. It is planned to build a parking lot for 14,500 parking spaces and several five-star hotels in the complex.
