Amid strict monetary policies in India and economic instability in Pakistan, an increasing number of companies from both countries are turning to Dubai as their new business hub. Dubai’s business-friendly environment, prime location, and robust infrastructure are making it an attractive destination for entrepreneurs seeking stability and growth.
Recent data from the Dubai Chamber of Commerce shows that in the first half of 2024, Indian companies registering with the chamber rose by 1.5% to 7,860, while Pakistani registrations slightly decreased by 1.2% to 3,968. Last year, 7,740 Indian and 4,018 Pakistani companies registered in Dubai.
Economic analysts attribute the shift to financial pressures in South Asia, prompting businesses to relocate for better opportunities. Indian businesses are attracted by Dubai’s lower tax rates and favorable business environment, while Pakistani companies face hurdles like currency fluctuations and visa challenges, making Dubai a more viable option.
The recent Free Trade Agreement (FTA) between India and the UAE has further encouraged Indian companies to set up operations in Dubai. Dubai ranks 16th globally on the Ease of Doing Business Index, compared to India’s 63rd position.
Pakistani businesses in Dubai are contributing significantly to the trade relationship between Pakistan and the UAE, with sectors like trade, real estate, and construction seeing substantial activity. The overall number of new companies joining the Dubai Chamber grew by 5% year-over-year, with notable contributions from Egypt, Syria, the UK, Bangladesh, Iraq, and China.
Dubai’s streamlined business processes and visa regulations are also attracting foreign entrepreneurs, making it a prominent global business hub.
