Treasury and Trade Solutions
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Destination of Choice
The United Arab Emirates (UAE), which consists of Abu Dhabi and Dubai as well as five
other emirates, is the first-choice location for companies seeking to centralize their
treasury activities in the Middle East, Africa and even parts of Asia, for myriad reasons.
The World Bank’s Doing Business 2015 report ranks the UAE as the 22nd best location
worldwide to set up a business, based on a range of measures — from ease of establishing
a company and paying taxes to protection for minority investment and access to
infrastructure. This is up from 25th place in 2014.
In a region that has witnessed significant change over the decades, the UAE is a beacon
of political stability. Its domestic economy is growing rapidly, with growth of 5.2% in
2013,
1
while the lessons of Dubai’s 2008 economic collapse appear to have been learned.
Crucially, the UAE also has a favorable regulatory environment by regional standards.
Furthermore, it has an attractive tax environment, with low personal and business tax and
— importantly from a treasury perspective — tax treaties with other countries in the region
to facilitate easy movement of funds.
The UAE has a well-educated workforce, with a strong local education system and a large,
highly-skilled expatriate community. The UAE’s infrastructure is impressive. Transportation
— as well as tourism and logistics, which depend on transportation — is the lynchpin of
its economic strategy. Aviation contributes almost 27% of Dubai’s GDP, compared with a
global average of just a few percent; by 2020, it is expected to account for 37.5% of GDP.
2
Flag carriers Emirates and Etihad are recognized as two of the world’s leading airlines,
and it is possible to reach almost anywhere in the world with ease from either Dubai or
Abu Dhabi. Passengers can connect from Dubai to 81% of global cities with populations
of over 10 million people. It also has direct passenger flight connections to 149 cities with
populations of over 1 million people. This represents potential export markets of more than
916 million people, or 13% of the world’s population.
3
1
United Arab Emirates National Bureau of Statistics, 6 November, 2014.
2
Quantifying the Economic Impact of Aviation in Dubai,
Oxford Economics, November 2014.
3
Quantifying the Economic Impact of Aviation in Dubai,
Oxford Economics, November 2014.
