The secret of getting ahead is getting started – this quote holds especially true for doing business. Add the criterion of ‘choosing the location’ carefully to this quote, and you are all set for taking that leap of faith! That location is ‘also’ the make-or-break factor for determining business ‘success’ or ‘failure.’ So, if ‘you’ have been thinking of expanding business or setting up a new line of business, then don’t look further – look towards United Arab Emirates (UAE).
UAE has come a long way both politically and socially. From uninhabited vast-lands, dusty topography and a ‘traditional and conservative’ society of twenty years ago, to swanky buildings, careful mix of old with the new, a buzz in the society, time-tinted architecture marching hand in hand with modern, futuristic architecture, combined with an environment that actively encourages business with ease in licensing, extremely people-supportive and efficient administration, to infrastructure that is capable of handling the increase in business in the peninsula. It has emerged to become a ‘go to’ destination for most businesses if they want to expand, enjoy a ‘locational advantage in business’, thanks to its strategic location geographically on the globe.
In this article, let’s look at the benefits of setting up/expanding business to the UAE as compared to India.
Currency Convertibility Benefits
The first benefit is the UAE currency and the American dollar-value equation and why it is ‘better’ than the Indian ‘rupee-value’ equation. The currency for the UAE is Dirhams with the currency abbreviation used being AED. The region has a number of international banks located in the region which makes foreign currency exchange easily accessible. Now to come to the point, while doing business, the convertibility of currency in comparison to the USD is important in determining the profit margins for any firm. At the current exchange rates, USD- AED equation is 1.00 USD = 3.67305 AED while the USD-INR equation stands at 1.00 USD = 66.4230 INR.
What Do These Numbers Translate Into?
Just look at the vast difference in the currency exchange rates between the two economies of UAE and India in comparison to India. What this number also indicates is in some ‘measure’ [apart from the developed/developing country debate vis-a-vis UAE and India] the robustness of the currency in comparison to the Dollar. So, if you are eyeing a foothold on the world map, then looking to expand your business in the UAE is the smartest decision to take. Operating a business from the UAE means reaping the benefits of dirham-dollar value equation; while getting payments once you have set up business and start earning profits [in USD terms], as per current exchange rates, you would need to shell out less in case of a ‘loss in business’ while reaping the benefits of the robust exchange rate in AED. Compare this to doing business in India, with the current exchange rates; the benefits mentioned in case of UAE are almost cancelled out if you substitute UAE with India as the location for setting up a business.
Government and Policy Support to New Business
Policy and government support is the next ruling criterion for any business. And, UAE has now become the ‘new gold standard for doing business’, and that difference has come about due to the liberal standards and the constant push to business from the administration and government. Ease of doing business, supportive and permissive approach to business [or as what you can also call the people-friendly] approach to doing business works for UAE as a possible destination for investors. Unlike India, where the licence-raj philosophy was prevalent for a long time, and the mindset still continues, UAE favours businessmen and potential investors to a large extent by offering tax-free zones, eases licenses and work permissions, makes life easy for investors and businessmen by offering help in business set-up.
The buzzword thus, as compared to India, where the Nano fiasco made headlines around the world, UAE offers a safe and smooth set-up help to businessmen.
Social Myths Debunked
The only thing holding back UAE is probably ‘common perception’ that it is not a place for families to stay or live in. Despite the veneer of modernity, there exists a conservative ‘mindset’ and that it’s tough to enjoy ‘your’ ‘after-work’ hours – that you need to think hard before going out to party and enjoy.
This is not true, not any Longer!
These are just social myths, which need to be debunked since the truth is that modernity exists happily with antiquity and conservative mindset. So, it is a myth that you can’t go out and enjoy yourself, if you want to. You can, and in fact, foreign magazines, newspapers, TV, films, DVDs are openly available in UAE. In fact, the truth remains that it is a liberal region and alcohol is consumed in the privacy of homes, licensed clubs, hotels, just like in India and women can drive around freely, move unescorted and all religions are respected and co-exist in the UAE very happily.
The social scene in Dubai is buzzing, more than any of the other capitals of India.
UAE Offers the Best Location Advantage
More than India, UAE offers strategic and location advantage; it is located right in between India so any of you want to make a quick dash home can do that, at a lesser price and less time. So, if you are setting up business in UAE, you can actually enjoy the benefits of doing business ‘easily’ while still being just a hop-jump and skip away. At the same time, UAE also works since it offers an entryway to the World market while not being as expensive as say setting up business in US or the Western countries.
If you are a would-be-entrepreneur thinking of opening your first venture, entrepreneur who wants to start out being global with opening a second office or branch, then UAE is the go-to destination.