Dubai has positioned itself in recent times as a global business hub and luxurious destination, and it has been able to attract companies from all parts of the world, mostly a stream of New York-based businesses. This can be attributed to advantages related to tax and infrastructural excellence, with a well-regulated business-friendly framework in Dubai. The article delves deep into why New York-based companies are finding Dubai business setup as their new home and what benefits they gain from it.

1. Tax Advantage: The Final Game Changer for U.S. Companies

One of the most motivating factors of this relocation is the tax-friendly aspect of Dubai. In the United States, corporate taxes can be as high as 21% with additional charges from state taxes; whereas in Dubai, it is quite a more viable alternative:

Corporate Tax: In case a firm qualifies under the free zones of Dubai, it is allowed to carry on business with a 0% corporate tax rate.

Personal Income Tax: There is no personal income tax in the UAE; hence, more profits go back into the pocket of business owners or pockets of workers. In comparison, US resident pay personal tax in the USA upto whooping 37%.

2. Convenient Location and Quality Infrastructure

Dubai, strategically located in the middle of Europe, Asia, and Africa, makes business access key markets unmatched elsewhere. The infrastructure present here is ultra-modern; this includes the following:

Dubai International Airport (DXB): A main international hub through which international travels can be performed very easily

Jebel Ali Port: The world’s largest and busier port. The trade operations through it are suitable for global requirements.

It offers any business that wants to grow from New York to the rest of the world unbeatable connectivity and efficiency.

3. Increasing Numbers of U.S. Companies Moving to Dubai

The trend among U.S. businesses moving to Dubai is seen in the numbers:

The DMCC free zone witnessed a 10% year-over-year growth in American companies signing up, taking the total number of U.S. firms to 679.

Several large US firms have already set significant footprints in Dubai, including IBM, Citibank, Johnson & Johnson, and 3M.

They are attracted to the regulatory regime of Dubai that is pro-innovation and pro-growth for businesses.

4. Financial and Legal Firms driving change

Financial and legal firms are also coming to Dubai and finding it an attractive destination

Marshall Wace, Rothschild, and Skadden all recently set up their operations in Dubai.

The DIFC now hosts 60 hedge funds, underlining the city’s appeal as a financial hub.

For New York-based finance and legal firms, Dubai offers proximity to substantial sovereign wealth funds and high-net-worth clients.

5. Business-Friendly Policies and Free Zones

Dubai has maintained a pro-business environment by coming up with:

Free Zones: DMCC and DIFC have enjoyed the privilege of 100% foreign ownership, no customs duties, and ease in registering companies.

Ease of Doing Business: The UAE is among the top 20 in the Ease of Doing Business Index from the World Bank.

The above policies made Dubai the perfect destination for New York-based companies in search of an alternative.

6. High Quality of Life for Expats

For business owners and their employees, Dubai offers a high standard of living including:

Modern Amenities: Luxury housing, top-tier healthcare, and international schools.

Safety and Security: Dubai is one of the safest cities worldwide that is a big plus for families.

Multicultural Environment: The presence of a broad expatriate community makes assimilation into the Dubai community an easy affair.

Why Now is the Time to Look at Dubai

The economic and regulatory advantages of Dubai make it a very attractive destination for New York-based companies. Moving or expanding a business to Dubai can allow New York-based companies to: 

• Save the operation costs significantly.
• Tap new markets in Europe, Asia, and Africa.
• Benefit from a supportive business ecosystem.

Conclusion

Dubai is not only a place for business visits but also a hub for opportunities all over the world. The location provides tax-friendly policies, a strategic location, and an open business environment; hence, New York companies can easily consider it for the next level of expansion. Dubai can offer a place either for startup firms or well-established ones with access to the tools and resources they need to reach their success goals at the international level.

Do you want to shift your business to Dubai? Chat with experts on Whatsapp +971 55 488 4712  and. Visit a prominent Company Setup Provider E-Startup who helped many expats shift their business from the USA to Dubai.