Proud Tax Haven in the Mideast
Yes, Dubai is a tax haven and proud of it.
Jebel Ali, the first free trade zone in the UAE in 2003 led the way as a planned offshore financial center. Soon Ras Al Khaimah (RAK), another sheikdom, was also launched an offshore financial facility.
Jebel Ali and Dubai offshore centers have positioned themselves as the Mideast equivalent of the Cayman Islands or Liechtenstein. Observers have predicted the UAE will become the world center for Islamic finance.
As a strategically located member of the seven emirates, Dubai is becoming the leading UAE commercial gateway to more than 1.5 billion consumers in Asia, Africa, Europe, India and the Middle East. Construction is booming everywhere, fueled by billions of dollars in oil wealth. The Dubai government says that as many as a quarter of Fortune 500 global firms now service the Middle East and North Africa from a base in Dubai.
Dubai’s evolution has been dramatic, with modern skyscrapers and gleaming office blocks springing up on the banks of Dubai Creek. Development has been well managed and oil wealth well-channeled. The rulers of Dubai have a penchant for grand projects such as a new extension to port facilities, the world’s tallest hotel, the Palm Islands, a massive project with 62 miles of new beachfront, as well as hotels, villas, shopping malls, cinemas and Dubai’s first marine park.
Land-hungry Dubai is increasingly looking to the waters of the Persian Gulf to find new land to develop. This is shown by yet another huge project, “The World,” which plans to build 300 artificial islands in the shape of the world’s countries. Recently Dubai signed a deal with the Louvre Museum in Paris to establish a branch of the museum there – a claim no other nation can make.
Endless Ambitions with No Inhibitions
Dubai also has one of the world’s largest free-trade zones and first-class Internet, media and communications infrastructure, and much of it is brand new. All this, and zero taxes, too.
And Dubai has no Mutual Legal Assistance Treaties (MLATs) or tax information exchange agreements with the United States. Dubai also stoutly resisted the Organization for Economic and Community Development’s phony “harmful tax competition” initiative, preferring to keep its attractive zero tax regime.
Dubai is a good choice for companies setting up distribution channels in Europe, the Middle East, Africa and Asia. It’s worth considering for a bank account, although the banks tend to cater to rich Arabs and Dubai’s large expat community. Residence permits are easy to acquire, especially if you’re hired by a local company.
Dubai seems to have no end to its ambition. Nor does Dubai have any inhibitions, with new plans such as those for the Middle East’s largest shopping mall, the new airport at Jebel Ali and the world’s tallest tower in Burj Dubai on the drawing board.
So why bash Dubai, indeed?
It is one free market Arab country that is friendly to America and the West. Not to mention, it’s one Mideast location that offers real possibilities for offshore investment, banking and commerce of all kinds.
And it could very well offer you a firm basis for investment in real estate, stocks, and bonds as a base for your business in the Mideast and worldwide.
For more information about Dubai, please visit http://www.dubai.com/ and http://www.dubai.ae/.
This is part two of Bob Bauman's take on Dubai. To read more insightful articles from Bob, Jack Crooks, Eric Roseman and Mike Burnick, become a Sovereign Society Member today - and save 50%!
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