Are you undecided on the best location to open your business in UAE? If YES, here is a detailed comparison between starting a business in Dubai vs Abu Dhabi. The United Arab Emirates have become so popular in the past decade. The popularity it has gained can be attributed to the working economy
An Simple Economic Analysis on Abu Dhabi
Abu Dhabi as a city in the United Arab Emirates, and it is home to a large population of people from all over the world. It happens to be one of the provinces of the United Arab Emirates. The annual per capita gross domestic product amounted to AED 380.1 thousand in 2011.
The total fixed capital development was AED 199,001 million in 2011, while compensation of employees amounted to AED 124,960 million in the same year.
According to a report in Wikipedia, the main activities contributing to economic growth (GDP at constant prices) in 2011 were “Mining and quarrying” (including crude oil and natural gas), “Financial and insurance” and “Manufacturing” with increases of 9.4 percent, 10.5 percent and 9.8 percent respectively.
Commodity imports through the ports of the Emirate of Abu Dhabi were valued at AED 116.4 billion in 2011 compared with AED 86.6 billion in 2010. The main imports during 2011 were machinery and base metals, which accounted for 50.7 percent of the total value of imports.
The united states of America was the main country for imports, from which the Emirate received imports worth AED 13.4 billion.
Non-oil exports were valued at AED 11.5 billion, with transport equipment and base metals contributing 61.5 per cent of the total. Canada was the top destination of Abu Dhabi non-oil exports, receiving goods worth AED 2.6 billion from the Emirate in 2011.
Mina’ Zayid is the main port of Abu Dhabi through which the goods flow.
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A Simple Economic Analysis on Dubai
There is no one who isn’t conversant with Dubai. Every now and then people from all parts of the world take trips to Dubai. They want to go and catch a glimpse of the great city. Generally, Dubai is a worldwide city and business hub of the Middle East. It is also a foremost global transport hub for passengers and cargo.
Oil revenue helped quicken the development of the city, which was already a major commercial hub, but Dubai’s oil reserves are limited and production levels are low: today, less than 5% of the emirate’s revenue comes from oil. A rising center for regional and international trade since the early 20th century, Dubai’s economy today relies on revenues from trade, tourism, aviation, real estate, and financial services.
As at 2012, Dubai was the most expensive city in the Middle East. In 2014, Dubai’s hotel rooms were rated as the second most expensive in the world.
Every year, millions of people make Dubai their spot of holiday. It is no wonder that businesses that are located in this commercial city are always a force to reckon with. It is also no wonder that foreign investors have made this place their homes of abode.
Benefits of Doing Business in Dubai
As is with several countries of the world, there are benefits of doing business in Dubai. Some of these benefits include;
1. Being exposed to the international communities of the world
It is no longer news that every year, millions of people make their way into the prestigious Dubai. From tourism reasons to leisure and business reasons, Dubai is usually a hot hub for doing business. This is one of the reasons why businesses in this part thrive.
2. Opportunity to network ad meet business owners and Investors
Doing business in Dubai means you will be exposed to the best competition ever. With the lots of businesses that are located in Dubai, it gives a new business owner the edge to learn the ropes from competitors and know the areas to improve on so as to still be able to stand out of the competition.
3. Doing Business in an Oil rich City
Dubai is an oil rich city and so it is not news that everything in Dubai is working. So, starting a business in Dubai means that you will have the life time opportunity to run your business in the oil rich city.
Benefits of Doing Business in Abu Dhabi
While these two cities are in the same country it is very important for us to note that Abu Dhabi happens to be the most visited and popular provinces in the United Arabs Emirate. This city also is a tourist attraction but you cannot compare the magnitude at which tourists visit it with that of Dubai.
Some of the benefits include;
Presence of Foreigners and Investors
Foreigners who go to the UAE made this their permanent home of abode and so doing business here would also mean that you are exposing your business to be seen by these foreigners. The effect this has on a business is that starting or doing your business in Abu Dhabi helps to give you an edge.
A Working Economy
Doing business in Abu Dhabi means that you will be operating in an already working economy. The economy of the United Arab Emirate no doubt is generally promising and so this automatically rubs off on businesses in the country. So doing business in Abu Dhabi means that you are placed at a very advantageous position.
So, the question now is which of the two is the best place to run a business?
Overall, doing business in Dubai is your best bet especially when you have to compare between Abu Dhabi and Dubai. The reason is that Dubai attracts lots of people for a wider reach.
Dubai is also known all over the world. This is why the city would continue to attract more and more people and even investors to come and tap into what the economy has in store. You too, when looking to start a business in the UAE, should look at doing it in Dubai because of the numerous benefits that has previously been listed.