MGT 302-W1 Business Environment in UAE and GCC

 

Dubai Techno Park



CLO1: Practices and Opportunities

The Dubai Techno Park is a park dedicated to information technology (IT). The main aim for the development of this park is the commercial development of technology. It is meant to compete with Western cities like New York and Silicon Valley which hosts innumerable IT companies and international collaborations. Hence it is an open economy to foreign investments for research and development. It is an industrial complex located in Jebel Ali Industrial Zone with a free trade zone business type.

Dubai Technosphere

CLO2: Discussion of Different Aspects

The park was established in the year 2002 and is spread over an area of 21,000,000 square meters, 30% of which is an open space. The park has the capacity to house almost 60,000 residents and 133,000 employees. It came into being in the year 1985 and is governed by Economic Zones World (Technopark, 2020). The value of non-oil exports from the JAFZA including the Techno Park amounted to almost Dh 1.63 trillion in the year 2018. The Federal Customs Authority (FCA) indicated that the value of non-oil exports rose by 1.8% since 2017 (Gulf News, 2020).

CLO3: Different Circumstances

Usually business setup in Dubai Techno Park requires minimum paperwork and a lot less hassle when compared with business setups elsewhere. For entrepreneurs who want to set up their business in the Dubai Techno Park can do so under three broad categories; first trading in specified items, second professional business and third industrial activities. Most of the businesses found current at Dubai Techno Park are related to logistics, engineering, healthcare, water and energy. The main purpose is research and development and hence all industries focusing on the same are highly recommended for the park. As for most of the rules of set up, the laws of the Free Trade zone applies.

Having said the above, companies can be registered as a limited liability company, GCC national owned proprietorship, and civil partnership company for investments in the intellectual facilities. These are usually established in accordance with the Federal Civil Transaction Laws. A company can also be registered as a branch of a free zone organisation or a branch of a foreign company. However, the businesses within the Park is not allowed to operate in the mainland, with exception in special cases only. Since the park offers a lot of benefits there is a huge scope of Foreign Direct Investments (FDI) and thus, multiple currency trading is facilitated and any person can open an account in the currency of their choice (Farahat & Co., 2020).


CLO4: Skills of Business Practices

There are also a number of advantages in the park which is not provided elsewhere such as easier granting of foreign visas, easy terms of lease on offices and other spaces. Water and energy connection are available at affordable rates with efficient management of resources. There are also no custom duties on the value of exports. The park is also strategically located close by to the Jebel Ali Port, the Al Maktoum airport and the JAFZA. The area is accessible by public transport such as buses and metros. Thus, local employees also have an advantage here.

The biggest attractive factor is the self-contained township features. There are posh hotels, living spaces equipped with all modern facilities, shopping malls, educational facilities, healthcare shops and institutions and even manufacturing units. Roads and other means of communication are also extremely well maintained by the authority. There is 100% repatriation of profits and has no corporate tax. The lease agreement for each company is granted for a period of 15 years.

 

References

Farahat & Co. (2020, April 03). Business Formation in Dubai Techno Park (DTP). Retrieved from Farahat & Co.: https://www.farahatco.net/business-setup-in-dubai-techno-park/

Gulf News. (2020, April 03). Value of UAE’s non-oil trade at Dh1.63 trillion in 2018. Retrieved from Gulf News: https://gulfnews.com/business/value-of-uaes-non-oil-trade-at-dh163-trillion-in-2018-1.64242491

Technopark. (2020, April 03). About. Retrieved from technopark: http://www.technopark.ae/

 

 

 

 

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