With more and more Indian MSMEs looking to expand their global footprint and build products and solutions for the world, Dubai is fast emerging as the preferred destination for Indian MSMEs and startups looking to go global.
As the global economy continues to evolve, Micro, Small and Medium scale enterprises are becoming increasingly important for driving economic growth and development. Indian MSME enterprises, often referred to as the backbone of the Indian economy, are now looking to expand beyond the domestic markets by choosing Dubai as their preferred destination for global expansion.Dubai’s business-friendly operating environment, an open and transparent taxation framework coupled with a high consumer adoption rate, a relatively low cost of customer acquisition rate and access to a large customer base due to its strategic location has made it the preferred hub for global expansion, attracting a slew of Indian micro, small and medium enterprises.
Dubai with its stability, government effectiveness and reliability, provides for perfect access to the Middle Eastern and North African markets (MENA) with over 1 billion customers, which is one of the major reasons why Indian MSMEs are looking to expand their global footprint through Dubai.
Besides, there has been a significant improvement in the trade links between African nations and the UAE over the past decade, which has resulted in tremendous growth for the region with a vision for continued growth. The city further has an untapped potential to double its exports to African nations.
Dubai’s strategic location
Dubai’s central location makes it a gateway not only to the Middle East region but also to Europe, Africa and Asia. Located strategically between the East and the West, Dubai continues to lure many businesses with its enabling physical infrastructure that facilitates import and export via land, sea, and air.
Being the maritime hub for the region, with its long coastline and Jebel Ali port – the world’s largest man-made port and the busiest in the Middle East, Dubai offers unparalleled trading opportunities. The city of Dubai is also a global aviation hub, with the busiest airport in the world for international passenger traffic, providing businesses with unprecedented reach and access to global markets. Almost two-third of the global population is within an 8-hour flight from Dubai.
The UAE and Dubai are not just looking to be a gateway to the region, but rather to the entire world. “We are no longer a gateway to the region but the whole world, and we ensure most of the global trade comes from us”, said Dr Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade at the World Green Economy Summit.
Dubai-India collaboration initiatives
Indeed, with India and the UAE’s long history and relations, Indian businesses can profit from a landscape that encourages growth, innovation, and technological adoption while lowering entrance barriers. At Dubai Expo 2020, a new initiative called the Global India Collaborative (GIC) was launched with the aim of helping Indian MSMEs find new markets and investments.
“Many bridges are required to be built between the Indian industry and the world in order to globalise our businesses by making them adopt global best practices and making them globally competitive. GIC is one such bridge. It will help India realise Prime Minister Narendra Modi’s dream of making India a five trillion-dollar economy,” said Santosh Mangal, Global President of GIC.
Business-friendly destination
Dubai’s reputation as a worldwide hub for business and innovation originates from a corporate mindset tailored to commerce, lower startup costs, and the establishment of globally competitive, sector-specific ecosystems.
Another major catalyst driving businesses to Dubai is the visa offerings, as its visa laws and regulations are more relaxed than those of the US, Singapore, and the UK. Dubai’s golden visa system offers long-term business visas, and its remote visa system offers even more opportunities for businesses to stay in Dubai even when working from outside the country.
The city’s vision for innovation-led growth and its conducive and business friendly environment with provision for several support programs and subsidies also make it an attractive destination for businesses of all sizes. Dubai offers businesses state-of-the-art warehousing, strong multimodal transport capabilities, and a highly skilled workforce, to ensure that trade keeps growing.
Dubai: Global business destination
Today, the city has become a global melting pot, with a large Indian diaspora, and continues to attract a large population of skilled workforce because of its global reputation and higher income. Indian MSMEs are among the many businesses around the world that have recognized the potential of Dubai and are choosing it as their preferred destination for expanding their global footprint.