Export Business in UAE
Dubai Exports is an export promotion agency that offers various beneficial programs to exporters. One of these programs is the Export Assistance Program (EAP). This program focuses on providing funding to small and medium-size entrepreneurs to aid export operations. In this regard, EAP provides support for exporters to explore international markets (Dubai Exports, 2012). Another program is the Partner Export Services, which aids Dubai Exports’ members in aspects such as access to information regarding the nature of a market, and facilitating easier transactions in oversee markets. This program recognizes the importance of comprehensive support and guidance concerning the effective establishment and expansion of export businesses. Another crucial aspect of the Partner Export Services is the incorporation of services for international export service providers such as Intertek. This entity provides exporters with services such as certification and inspection and laboratory testing, which are crucial in promoting exports. Interteck Government Services handles various aspects of regulations that face exporters in different countries. In this regard, it deals with distinct aspects of governmental red tape on behalf of exporters (Dubai Exports, 2012). The third program is the Dubai Export Academy that seeks to impart knowledge and skills to entrepreneurs in UAE who have the prospects of entering the international market. As a center of excellence, the academy provides exporters with crucial information regarding foreign markets and the effective management of exports. Aspects such as trade data and analysis of foreign policies present significant benefits to exporters. Dubai Exports offers a program that allows entrepreneurs to transact export businesses through the mainland Dubai. This program provides exporters with alternatives means to re-export their merchandise and thus help entrepreneurs to minimize operation costs.
Of all the programs offered by the Dubai Exports, the Export Assistance Program possesses the most significant benefits to exporters. The lack of adequate funds imposes numerous restrictions on the export business. By providing financial support to aspiring and current exporters, EAP promotes the realization of successful entrepreneurs in the foreign market. In addition, financial access enhances the exporters’ capacity to tackle other aspects of international trade with less difficulty and streamline foreign transactions. These include obtaining information concerning foreign markets and seeking services of various entities in promoting effective transactions.
Incentives for UAE Exporters
UAE exporters enjoy a wide variety of incentives attributable to an economic system that has minimal government interference and favorable private sector regulations. First, UAE exporters do not encounter various trade barriers such as foreign exchange control and trade quotas, which adversely affect profit margins for exporters (Noack, 2009). Minimal foreign exchange controls introduces numerous cost advantages to exporters. Custom duties are substantially low at an estimated 4 percent, and include many exemptions that significantly favor exporters. The low duties imposed on exports make UAE an economically viable center for export trade. Exporters in UAE do not incur costs associated with direct taxes on corporate profits. These exemptions also apply to personal income. In UAE, only oil companies and foreign banks are subject to direct taxes, which are in flat rates.
Various free-trade zones in UAE offer incentives to exporters such as subsidized energy rates, and import and export tax exemptions. In addition, these zones provide support services like worker housing, which impart positively on exporters’ operation costs (Bains, 2011).
Another crucial aspect is the stable exchange rate of the UAE Dirham in consideration of major world currencies such as the US dollar. This saves exporters costs that arise from the need to use stable currencies for export trade. As a center for exports and re-exports, UAE identifies with an extensive network for foreign trade. In this regard, it provides exporters with numerous market opportunities and minimizes the risks associated the minimal levels of diversity of goods and services.
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