Spotting UAE – Business talks with INAC Partner Lobo Management in Dubai

Emirate of Dubai: Hardly any other region in the world reflects contrasts like this

Patriarchal structures and visionary thoughts, wealth and poverty, opportunities without equal opportunities. The United Arab Emirates are something like the creative exotic of the region. In the 50 years since it was founded, the small country on the Gulf has worked its way up to become an important regional power and financial center in the Middle East. The Emirati business model – tourism, entertainment industry, finance, logistics and attracting cutting-edge manufacturing industries in free trade zones

Founded in 1833 by Sheikh Al Maktum, with an area of ​​35 km², Dubai is home to well over 3 million inhabitants. Thanks to a decades-long construction boom, Dubai is the city with the highest number of skyscrapers in the world (over 300 meters high) as well as the tallest building in the world (Burj Khalifa, 828 meters).

Dubai is a global trading center and has the world’s third busiest airport by passenger traffic and the tenth busiest port by container throughput. In a ranking of the world’s most important financial centers, Dubai ranked among the top 20. Since the unification of seven emirates to form the UAE 50 years ago, has the country is developing politically and militarily into a major regional power. The UAE now controls the most important ports on the Horn of Africa and the important trade sea routes from the Gulf of Aden to the Suez Canal.

With up to 14 million foreign tourists annually, Dubai is one of the most visited cities in the world. With more than 30 billion US dollars, it also had one of the highest tourism revenues in the world. Dubai is a city and an emirate in the United Arab Emirates. The city is known for luxury shops, ultra-modern architecture and a vibrant nightlife. The Burj Khalifa, a 830 m high skyscraper, dominates the skyscraper skyline. In front of it is the Dubai Fountain, whose jets of water and lights choreograph to the music. Set on artificial islands off the coast is Atlantis, The Palm, a resort with a water park and aquarium.

In 2020, the economy collapsed by 11 percent due to the corona crisis.

The population, which is more than 85 percent foreign, fell 8.4 percent, and house prices hit a record low since the 2008 financial crash. For the coming years again with a significant economic growth

Future projects:

With the Mars probe “Hope” there is a relevant space mission in the UAE. Major companies in the aerospace industry are now based in the Gulf. And with Masdar, the UAE has created a world-leading developer and investor in the field of renewable energy. Indian petrochemical giant Reliance Industries announced plans to build a $2 billion petrochemical plant with Abu Dhabi’s oil company Adnoc.

But with the build-up of military size and economic power, the criticism is also growing: while neighboring Qatar, after displeasure with the conditions for guest workers in construction for the soccer World Cup in November and December, has significantly improved labor laws and conditions, prevail in the UAE still scandalous conditions. The conditions under which millions of taxi drivers, construction workers and cashiers work are inhumane.

Of the 9.8 million UAE residents, just over ten percent have Emirati citizenship. “Expats” are attracted with special measures. 

Many founders, influencers and companies have already been lured to the Gulf with zero percent income taxes and very low corporate levies. But because of the Corona dent, a program with “golden” visas for rich pensioners as well as for founders, freelancers, creative people and specialists has now been launched. Long-term residence rights make it easier for coveted workers and entrepreneurs to move to the Gulf. Foreign companies have also recently been allowed to move Own 100 percent of the company and no longer need an Emirati majority owner.

Which sectors will develop particularly well?

The digitalization of the economy and in particular the health sector should be the focus in the medium term. With the “Innvoation Healthcare” strategy, the Ministry of Health and Prevention intends to strongly promote digitization in the healthcare sector. The accommodation and catering sector will grow strongly again, as will the transport, storage and communication sectors and wholesale and retail trade. However, after the “overheated” construction boom, construction activity will decline.