Dubai continues to be a businessman's haven

These spending habits make the region extremely lucrative for international companies and businesses. However, there remains a flip side to the deal.

The Middle East, Africa and South Asia are some of the most populous regions on the world map, making them profitable operating markets for international businesses. The vast region is also famous for extravagance the rich here like to indulge in. From the manifestation of the proverbial golden spoon to dinner buffets that cost millions of dollars to host, high net-worth individuals here like to live life grand and spend in an even grander way.
These spending habits make the region extremely lucrative for international companies and businesses. However, there remains a flip side to the deal. Not many cities in the region offer a conducive environment for international businesses. Sometimes, it is less-than-ideal infrastructure, at times, it is the indigenous population's unfriendly attitude, and at other times, it comes down to the sheer lack of security of stringent laws to protect international operators.
But all is not lost, as there is one city that has risen above the rest to claim the title of the regional business hub. Dubai has had the ball rolling for years and is increasing the distance between itself and competitors with each passing year.
The rise
Dubai was once a quiet sea town with the pearling and fishing industries at the forefront of its economy. Until the nation struck oil. But unlike others who keep on expending their natural reserves without a worry, Dubai's government carefully started investing its fortunes in other industries, especially real estate and infrastructure that included world-class air and sea ports.
Today, the leaders' farsightedness has paid off. Dubai has been transformed from a desert landscape to one of the most dynamic and well-equipped cities in the world, let alone the region. It has played to its strengths well. Realising its key geographic location on the map, Dubai has developed one of the most efficient seaports in the world, and coupled with its airport being the busiest in the world, the city has become a crucial stop for passenger, freight and cargo traffic moving across the western and eastern parts of the world.
Its cargo handling capabilities have also made Dubai a key re-export and trade market in this part of the world, from where millions of tonnes of produce and goods make their way across the world
In the ongoing oil price crunch, Dubai has had little to worry about. The rulers saw it early that oil reserves will not last forever and gradually began diversifying the emirate's sources of revenue. The city invested heavily in real estate, tourism, hospitality and financial sectors, transforming the economy altogether. It has churned out marvels such as the Burj Khalifa and the Palm Jumeirah that have become global icons.
It is the home to superlatives, the world's biggest mall, tallest man-made structure, one-of-a-kind underwater hotel rooms, beautifully constructed lagoons and marinas as well as a super road and communications network. But the decisive action was opening up its lucrative realty sector for foreigners at the beginning of this century. The numerous freehold areas set up across the city allowed foreign nationals 100 per cent ownership of properties and businesses, ushering in an era of unbound prosperity driven by abundant overseas capital.
Regulation
Over the years, Dubai has not just banked on structures and material offerings, but has consciously endeavoured to improve the quality of life in the emirate. There is no tax on income and salaries, an attribute that has made the city a top choice for expat talent. Laws are continuously altered and improved to suit the city's vast foreign population, the city's security has been nothing short of impeccable and the healthcare sector is one of the best in the world and being continuously bettered.
Education has also not been compromised, and the city boasts the best schools as well as top universities that are turning youth into valuable members of its diverse society. Red-tape protocols have been minimised and getting a business running in Dubai is merely a few steps away.
This has made the city the obvious headquarter for businesses looking to tap into the Middle Eastern, Central Asian and African markets and its realty sector has been a direct beneficiary. The demand for office spaces has remained high despite the fluctuations in the residential sector. According to UAE property portal Bayut.com, search hits on the website for rental office spaces in Dubai went up by a massive 235 per cent in the year 2015. On the other hand, search hits for office spaces on sale rose by 173 per cent in the 12 months ending December 2015.
The stats and the general strength of rents in Dubai realty's office space segment validates the city's importance for small and large businesses. The city's newfound love with innovation and technology - the city plans to become the 'smartest' in the next few years - is also attracting aspiring businessmen and tech whiz kids to try their luck here, further fuelling growth.
Dubai has already become the centre for business, innovation and entrepreneurship due to its forward-thinking attitude, and the stakes getting higher with the approaching Expo 2020. Expected to rake in 25 million visitors, the massive infrastructure development will keep creating a need for services, giving aspiring businesses and businessmen a platform for performance like never before.
The writer is a real estate analyst at Bayut.com. Views expressed are her own and do not reflect the newspaper's policies.