Why any multinational ought to be based in Dubai

Dubai's ruling Maktoum family has been offering tax incentives to merchants to relocate to the city since 1901 when it lured businessmen upset by a new tax regime across the Gulf.

But non-existent corporate and income taxes are just one of the many benefits to companies setting up in Dubai. For multinationals the superb logistics of the Dubai International Airport and Emirates Airline, with a myriad of global connections, is compounded by the safety and security of Dubai itself in a troubled region.

Dubai is also hardly standing still, as any visitor will notice. By the end of the year the second airport, Dubai World Central, will have its first runway open. There is a Metro under construction, and the real estate boom offers the prospect of an explosion of accommodation options for staff and commercial premises in free zones.

Realty reality

For with an estimated 50,000 or so residential units due to be delivered this year and next, Dubai has an abundance of good accommodation which will be available by the time a multinational has decided to move to the city. The chances are that the forces of supply and demand will also lower rentals, although these are already not high by global standards.

The standard of living provided in Dubai is also excellent, and likely to attract and retain the best in global staff. A recent survey put happiness at 61 per cent among local residents, despite the current problems with traffic, construction and inflation.

For Dubai has warm winters, a world-class urban environment with excellent leisure facilities and shopping malls, and is already a leading luxury holiday destination with 40,000 hotel rooms.

Multinationals can therefore find the right accommodation for their operations and staff in a city with air connections to the four points of the globe and a top standard telecommunications network. Moreover, the cost of operations is not likely to rise greatly in view of the construction work in progress.

Can-do attitude

Meanwhile, the Dubai Government is arguably the most business friendly in the world. It is always a matter of 'what can we do to assist you in your relocation' and letting companies get on with their business without interference.

The stable politics of the UAE with its federal system which includes an elected representative assembly is a final factor to consider. Visionary leadership and financial strength underpin these political advantages.

So expect to see more multinationals following the example of Halliburton and Standard Chartered this week. Dubai has always been a safe haven for business, but the scale of such activity is set to get much bigger.