What is the attraction of Dubai, North Africa’s gateway?

What is the attraction of Dubai, North Africa’s gateway?

 
 
When considering the African market, it is necessary to be aware that even in the same Africa, there are many different elements in the northern part, eastern part, south part, western part.
Among them, North Africa has a strong color in the Middle East.
 
Middle East and North Africa are collectively called MENA (Middle East and North Africa).
 
The countries to which MENA belongs are as follows.
 
Middle East: UAE, Saudi Arabia, Qatar, Iran, Iraq, Oman, Yemen, Jordan, Kuwait, Afghanistan, Pakistan, Lebanon, Turkey, Syria, Bahrain, Jordan
North Africa: Morocco, Algeria, Tunisia, Libya, Egypt, Sudan, Gibbsi, Mauritania

 
As of October 2017, 992 enterprises are entering MENA, of which 322 are entering the UAE.
(Referred to JETRO’s data)
 
 
“When thinking about entering North Africa, you should enter the Middle East first”
It is a common understanding, which is frequently listened.
Many North African merchants come from the Middle East, and it would be a major factor for that.
 
Among them, “From the UAE, Dubai first” is a general view.
This time, I would like to introduce such attractive place, Dubai referred to my experience of visiting there.
 
 

Why Dubai first?

 
Then why is it “first from Dubai”?
 
In Dubai there are several special economic zones like “Dubai Airport Free Zone”.
These special economic zones are in an special environment where Japanese companies are likely to advance in the following points.
 
· 100% investment with foreign capital, establishment of corporation are possible (real estate, temporary staffing, logistics can not advance)
※ Branch can also be established
※ Investment from only one person is possible
※ The minimum capital is 1,000 AED (≒ 272 USD) , it’s very inexpensive
· There is no employment obligation of own citizen (UAE citizen)
· No foreign remittance restriction

 
Furthermore, foreign companies entering the country can receive the following special incentives.
· 100% corporate tax exemption (excluding foreign bank branches, oil/gas exploration/production enterprises)
· 100% import and export tax exemption
· 100% personal income tax exemption

 
The conditions so far are not quite satisfactory.
As an advance condition, it can be said that it is very attractive.
 
In addition, Dubai has good access to MENA and can be accessed to any country within 3 hours by plane.
In China, India, Russia, Europe and East Africa, it is within 5 hours.
Due to such ease of advancement and geographical advantages, Dubai has a function as a hub to MENA.
Actually, businessmen (such as buyers) from MENA + China, India, Russia, Europe and East Africa gather in Dubai.
 
There are already more than 1,600 enterprises in DAF, and the following companies are entering from Japan as well.
・Daiso(29 shops in UAE, and the price there is twice to Japanese one)
・Seven&i(10 shops in UAE)
・YOKU MOKU(Despite its three times price compared to Japanese one, its sales is very strong)
・MUJI
・CHATERAISE
・CASIO
・TOYOTA
・YOKOHAMA Rubber
・YAMAHA
・TERUMO
・SHISEIDO ,etc
 
Major industries (excluding petroleum related industries) in the growth trend are logistics, automobiles, electronics, aircraft, food and beverage, consumer goods, etc.
 
 

personnel expenses

 
In carrying out the project in Dubai, I would like to introduce about the estimate of personnel expenses at the time of local recruitment.
· Manager:600,000 to 750,000 JPY
· Engineer:360,000 to 450,000 JPY
· Sales / marketing staff:300,000 to 400,000 JPY
· Secretary, Accounting · General Affairs Staff:200,000 to 300,000 JPY
· Other staff:150,000 to 300,000 JPY

 
※Referred to DAFZA(Dubai Airport Freezone Authority)’s document
 
 

Living in Dubai

 
I would like to introduce about living in Dubai.
· Meals: Normal (500 to 1,000 JPY average per meal)
· Gasoline: Cheap (Ritter 60 JPY)
· Rent: High (but cheaper than NY · San Francisco and Paris etc.)
 
(Example)
Lower limit:An apartment for 2 adults (1 bed), about 150,000 JPY / month
Upper limit:It is a luxury apartment for 2 adults + 3 children (4 beds), about 550,000 JPY / month
 
Supermarket in Dubai. There are abundant kinds of spices.

 

 
Bikes are often used for fast food delivery and others.

 
A beautiful and gorgeous shopping mall.

 

 
An amusement park on the roof of the shopping mall (with a roller coaster).

 
 

Street view in Dubai

 
Speaking of Dubai, the image of a high building is strong among us.
Indeed, luxurious and tall modern buildings line up like the picture.

 

 

 

 
 
Although it may be difficult to have a little sense of life, Dubai is well informed, and you can get anything basically, so you will not have any difficulties in living.
It is comfortable except for the high rent and the burning climate (over 45 degrees in summer).
 
Dubai is very attractive for Japanese companies wanting to advance to North Africa and other Middle Eastern countries such as Saudi Arabia.
In considering the North African market, the existence of Dubai is indispensable.

Related post

Return Top