The Ease Of Doing Business In Uae Business Essay

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This section covers information pertaining to economic opportunities available in each sector of the country, basic cost of doing business and infrastructure available in the country. Reliable and detailed information on the various parameters makes the job easier for potential investors to make an informed decision. An investor always looks for crucial information like the risks involved, the returns expected on his investment, the available infrastructure, the costs incurred and how easily one can withdraw the investments, if the need arises.[1]

List of economic opportunities across Dubai:

Definition: This section includes the opportunities available for future investments in key sectors due to competitive advantage of those sectors or government incentives. Along with the opportunities that the government offers to invest in a particular sector this information also includes an overview and brief introduction of sectors.

Importance: It is important for investors to know and understand the various sectors in an economy, and the diverse opportunities available within. It allows the investor to be confident in making an informed decision on investing in a particular economy.

Data on Cost of doing business including rent, utilities and employee costs

Definition: This information gives an estimate of the expected setup cost for the investor investing in the foreign land. Setup cost includes costs for setting up a business, fees for applications and licenses, building and land rentals, electricity and water charges, standard of living costs and employee costs.

Importance: The costs involved in starting a business in a particular economy are always a source of worry for investors. These costs provide an important estimate for the over-all cost structure of the company and thus defines the viability of the business.

Infrastructure

Definition: The basic physical and organizational structures needed for the operation of a society or enterprise or the services and facilities necessary for an economy to function. Thus this section would include information pertaining to roads, water-supply, sewers, power grids, telecommunications, information technology and so forth.

Importance: A sound infrastructure provides investors with a conducive business environment. It is imperative for a country to provide basic infrastructure to attract private investors. An investor always looks at the infrastructure available for the business he is investing in. Infrastructure is a necessary prerequisite for economic growth and more efficient use of a country's resources. Therefore providing information on infrastructure is critical.

Key Economic Indicators

An economic indicator is a statistic about the economy. Economic indicators allow analysis of economic performance and predictions of future performance.

Key economic indicators impact the financial decision making process of the investor. Economic indicators play a very important role in analyzing the financial and economic viability of the project. Some of the primary economic indicators required by potential investors are Inflation, Tax Rate and Interest Rates.

Inflation

Current and Historical Interest Rates

Details on Fiscal Policy and Budget information

Definition: The Budget is a blueprint that the Government uses to set the economic agenda for the fiscal year. Fiscal policy is a tool used by the government to influence the economy by means of capital expenditure and taxes.

Importance: The information is important as it gives an idea to the investors on the government's response to the current economic condition in the country. The repose has a significant impact on the business and thus information on fiscal policy is important.

Details on Monetary policy and relevant links

Definition: The central bank of the country with the monetary policy controls the money supply by targeting a rate of interest. It is used to control inflation and maintain low unemployment.

Importance: Monetary policy affects all kinds of economic and financial decisions people make in this country. Monetary policy also has significant economic and financial effects on other countries.

Government info

Details of relevant government bodies:

Definition: The government bodies include the departments and offices that form together for the purpose of administering the entire country.

Importance: A new business venture cannot thrive if it does not garner the requisite support of the relevant government bodies. It is important for an investor to be aware of the existing political system and have an idea on the way the country is governed. Information on the political system is vital as the political system has a significant influence on the business. The ease with which investors are able to interact with the appropriate government body and the time required to get things done can alter the investor perceptions regarding a particular economy.

Laws

Details on various laws impacting FDI

Definition: There are various laws like the legislative system, labor laws, land and property laws, application laws etc that have an impact on the FDI. All the laws which by any means may impact a foreign investor must be clearly stated in a detailed manner, so that the investor does not face any ambiguity when investing in a business, and hence stay within the ambit of the law.

Importance: The FDI laws of a particular economy are of prime concern to investors, especially when it comes to dispute settlements and repatriation of profits. The pervasive nature of litigation and other related aspects of the legal system increase the costs of doing business and add uncertainty. In countries that have poor legal systems, investors seek additional protections and demand a higher return.

Labor Laws:

Definition: Labor law is a body of laws, administrative rulings, and precedents which address the legal rights of working people and their organizations. It mediates many aspects of the relationship between trade unions, employers and employees.

Importance: There are many matters that employers have to deal with when managing employees, such as working hours, minimum hourly rate of pay, vacation time and termination of employees, which highlights the importance of labor laws.

Source: http://en.wikipedia.org/wiki/Labour_law

Details on international agreements entered into by Dubai with full text:

Definition: International Trade agreements are trade agreements between two or more countries, in order to reduce quotas or tariffs with respect to trade, between these countries. International Agreements are Instrument by which states and other subjects of international law, such as certain international organizations, regulate matters of concern to them.

Importance: Every investor would need to know the various bilateral or preferential trade agreements between economies, so that business investments can be best positioned. Investors would like to recognize the benefits from two-way investment with a view to bring success to businesses.

Pre-application requirements

Definition: Every economy has a set of pre-application requirements that needs to be completed before an investor can setup a business in a particular sector. These requirements usually act as a filter criterion to weed out unwanted investors. Only after obtaining the approval from the relevant government body, can an investor be able to successfully setup a business investment.

Importance: As the pre-application requirement is more of filter criteria it helps not only the country to get the kind of inflow they desire but it also provides the investor the information whether if he is eligible to invest. It smoothen the process of investment.

Business Setup Process

Definition: A step-by step guide on how to start a business, the licenses and permits required and available, and the timeline for the application processing. The application process also covers details regarding the visas required to start a business in the country.

Importance: In order to successfully setup a business, an investor needs to follow the rules and regulations laid down by the government. The investor needs to understand the type of business categories available, the requirements that need to be completed before starting a business, details on residency and investor visas, Company or commercial registration procedures, licenses and permits available, and the time required to complete all procedures and setup a business.

Sector-wise Analysis

Information on key sectors in Dubai:

Definition: Sector wise information given by the Government to understand the current scenario of each sector. It provides a detailed report on key sectors with information pertaining to the growth, performance, competition, level of maturity and scope of each sector.

Importance: Sector wise information would help a prospective investor in profiling his target country better. An investor needs exhaustive information regarding the key sectors in an economy. Providing detailed information on the key sectors in the country, advertises the opportunities, both new and existing, that investors can potentially invest in.

Performance of key sectors

Definition: After providing the detailed information of each sector, it is vital to provide current state of each sector and a timely update on performance of each sector. It is important to highlight the competitive edge of each sector over another.

Importance: Once an investor has narrowed down the economic sector in which he is ready to invest in, detailed information with regards to the performance of that particular sector should be available to the investors. Past historical trends, and future opportunities of that sector allow investors to make an informed decision and do a scenario mapping of its growth potential

Availability in different languages

Definition: Availability of the Information provided on the website in multiple languages apart from the local language spoken in the country

Importance: The investor support website being available in the language that a potential investor can understand is critical to his information gathering needs. The investor faces difficulties if the information is available but he is unable to comprehend the local language in which it is written. English is one of the most widely spoken languages, and must be one of the languages with which the information is provided to an investor.

Supplementary Parameters

Economic Indicators

Definition: Key economic indicators impact the financial decision making process of the businesses. They play a very important role in analyzing the financial and economic viability of the project. The key economic indicators reflect the economic position of the country and help the business decide as to whether the country they are looking at investing is fit and matching the economic requirement. There is certain data which is supplementary to the critical data and is also used to analysis. This supplementary data gives information related to:

Real GDP

Real GDP per capita

Sector wise GDP

Population

Unemployment

Cost of Living Index

Revenues- Sector wise

Costs- Sector wise

Profit/Earnings - Sector wise

Details of Exports, Imports and Re-Exports

Importance: of the above supplementary is that is enables the potential investor to analyze the above along with critical economic indicators to ascertain the potential earnings of the business in the future based on the contribution on the respective sector to the GDP. Population information helps businesses analyze the labor workforce available and also identify if there are any labor shortages. Details of trade related data will also help businesses analyze the cost of resources and the potential for exports.

FDI Details

Definition: The information related to foreign investments would include the data related to the profits earned or the return on investment made my international organizations (FDI). Another component of the data that would be provided would include the incentives provided by the government of the respective country to current as well as potential investors in order to boost inward investments. Therefore FDI details would essentially cover two parameters:

Return on FDI

Investment incentives to foreign investors

Importance: It is important to provide this data as it enables the investors to calculate the potential earnings over a period of time after investment and will also help them analyze their exit P/E multiple (in case of divestment). Growth potential can also be estimated by analyzing historical FDI returns and the growth possible. The incentives offered by the government to investors also plays an important role as this will provide information related to tax holiday, duty cuts/drawbacks, repatriation of profits, ownership rights etc. These are some of the key parameters that affect both the financial as well operational decisions of an investor. Ideal incentives also help in boosting further investments.

Future Plans

Definition: The future plans of a country would highlight the future scope for growth of each sector and this information would help investors estimate their respective share of growth in the sector they have or plan to invest in. Another component of the future plans includes data related to gap analysis or potential for further investment in sectors that may require further investments. This data is completely based on estimates being made and therefore valuation and growth models selected should be appropriate and highly efficient to generate reliable data. Future plans would broadly cover;

Forecasted new investments in each sector and sub sector

Details on sectors which may need investment in near future

Importance: Forecasted new investments in each sector are important as they provide data to investors that would enable them to analyze future possible competition and growth prospects. Details related to the sectors which may need further investments are necessary as they will aid investors plan their investments/finances in such a manner that they can have a share of the growth in a particular sector. Strategic plans, such as the Dubai Strategic Plans, of the government should also be highlighted as the investors can gauge the amount of support they have from the government and the future prospects (of the business) post investment.

Registration

Definition: Registration processes form an integral part of a business decision as the laws, rules and regulations of a country will influence the ease of starting and running a business. Apart from licensing one has to also look at visas and work permit regulations for the employees. A website has to provide links to application forms or office addresses that provide regulatory information and forms required. The timeline provides the estimated time taken to establish the business and the time taken to solve litigation, if any. A lower timeframe would be beneficial as the investor can establish and start his business in a short snap and earn maximum return on the investment. A comprehensive list of data to be included in the registration process would be;

Commercial/Company Registration

Application Form

Details on Residency and investor visa

Licenses and permits required/available

Timeline for Application Processing

Debt amount list of Dubai government and related companies

Importance: The importance of providing the above mentioned data is that a company does not only take financial decisions related to foreign investment but also takes decisions related to the procedure for registering a new business, visa and work permits etc. Therefore, a country which has a relatively easy registration procedure would benefit as companies would prefer that country due to its ease of starting a new business.

Complementary Parameters

Govt. Info

Definition: This parameter provides information about the financial health of the government of a country, where the investor wants to invest in future. It includes factors such as External Debt, Government Revenue and expenditure.

Importance: It is nice to know the external debt and revenue that a government is earning, as these factors are directly taken into account while formulating fiscal policies for a country. These fiscal policies have a direct impact on the future investment in a country.

Primary information required to support business

Definition: This is a parameter which helps instill confidence in a prospective investor for coming into a country. It includes parameters such as list of top companies investing in the particular country, usage of information technology in the business sector and country wise inflows of FDI.

Importance: Country wise inflows of FDI in a country tell about the favorable condition for a business that a country has on offer. Also, a sense of security comes into the mind of investors when there is a long list of top companies investing in that country.

Key Economic Indicators

Definition: Key economic indicators impact the financial decision making process of the businesses. They play a supporting role in analyzing the financial and economic viability of the project. There is certain data which is complimentary to the critical and supplementary data and is also used in analysis. This complimentary data gives information related to;

Nominal GDP

Balance of trade

Population growth rate

Public expenditure on education as % of GDP

Household consumption expenditure as a % of GDP

Importance: of the above complimentary data is that together with the critical and supplementary data, it enables the potential investor to make an informed decision regarding the potential earnings of the business in the future based on the contribution of the respective sector to the GDP. Public expenditure on education underlines the determination of developing skills in the nationals of that particular country. The household consumption expenditure gives an idea about the life style of the citizens and can be helpful in ascertaining newer markets.

Info on website

Definition: This is the information present on the IPA site of a country, in order to attract FDI. The supplementary information under this category are International presence of relation offices across US, Europe and Asia or Ability of International locations to issue licenses etc.

Importance: Information regarding the relation offices and issue of licenses at international locations makes it easy for the investors to gather relevant information from the offices near to them and get necessary licenses for their businesses.

Information provided by the Central Statistics Department

Definition: This is the data provided by the Central Statistical department of a country. It is also considered as the most reliable data by the investors outside the country. The supplementary parameters under this category are sector wise salary details, employees engaged in each sector and no. of private owned establishments etc.

Importance: This type of information show case the strength of an already established sector in a country. The sector-wise salary details and no. of employees provide an insight into the cost factors involved in setting up a business.

INFORMATION GAP ANALYSIS

Overview: Critical Parameters

Scorecard

Information crucial to potential investors

Dubai

USA

UK

Canada

Singapore

Hong Kong

Saudi Arabia

Bahrain

Qatar

Information on details required by investors to support their business

 

 

 

 

 

 

 

 

 

List of economic opportunities

3

2

4

4

2

0

4

4

3

Data on Cost of doing business including rent, utilities & employee costs

2

4

4

0

2

4

4

4

0

Infrastructure

0

4

4

4

2

4

4

4

3

Government info

 

 

 

 

 

 

 

 

 

Details of relevant government bodies

4

4

4

4

4

4

4

4

4

Laws

 

 

 

 

 

 

 

 

 

Details on various laws impacting FDI

0

4

3

4

4

4

4

0

4

Labor Laws

2

4

4

4

4

4

4

3

1

Details on international agreements entered into, with full text

2

4

1

4

4

0

4

4

0

Sector-wise Analysis

 

 

 

 

 

 

 

 

 

Information on key sectors and their performance

3

4

3

4

3

2

3

3

3

Business Setup Process

 

 

 

 

 

 

 

 

 

Pre-application requirements

4

4

4

4

4

4

4

4

4

Key Economic Indicators

 

 

 

 

 

 

 

 

 

Inflation

4

4

4

4

4

4

2

0

0

Details on Fiscal Policy and Budget information

0

4

3

4

4

4

4

0

0

Current and Historical Interest Rates

0

4

4

4

4

4

4

4

4

Details on Monetary policy and relevant links

2

4

4

1

4

4

4

4

4

Investor Support

 

 

 

 

 

 

 

 

 

Contact Information

3

4

4

4

4

4

4

4

4

Availability in different Languages

4

4

0

4

4

4

4

4

4

Total Score (Maximum = 60)

33

58

50

53

53

50

57

46

38

Rank

Country

1

USA

2

Saudi Arabia

Key

Definition

3

Canada

1

Available

4

Singapore

2

Available and Accessible

5

Hong Kong

3

Available, Accessible and (Relevant or Detailed)

6

UK

4

Available, Accessible, Relevant and Detailed

7

Bahrain

8

Qatar

9

Dubai

Analysis

On comparing the critical indicators of all the countries it was discovered that Dubai has the lowest score on a total scale of 60. Dubai scores only 33 whereas USA has the highest score of 58. Hence USA is the ideal economy which provides reliable and high quality data to investors. Saudi Arabia comes to a close 2nd with a score of 57, which is only one point less than USA. It is found that the similar and developed economies provide almost the same information and only certain data points are missing from Hong Kong and UK. It was observed that in the neighboring economies Qatar provides the least amount of information. The following are the data points on which Dubai provides no information:

Details on Infrastructure

Details on various laws impacting FDI

Details on Fiscal Policy and Budget Information

Current and Historical Interest Rates

A lot of data though made available and accessible by Dubai is not relevant due to the fact that information is updated only till the year 2008. Countries such as USA, UK, Singapore and Hong Kong provide information for the year 2009. The following are the data points which lack the relevant information:

List of economic opportunities across Dubai

Data on cost of doing business including rent, utilities and employee costs

Details of relevant government bodies

Labor laws

Details on international agreements entered into Dubai

Information on key sectors in Dubai and their performance

Detail on Monetary policy and relevant links

It was identified that a lot of data points provided by the Dubai government are given annually and hence the data is not detailed. Countries such as USA, UK, Saudi Arabia and Singapore provide figures quarterly. Dubai doesn't give details on the following data points:

Data on the cost of doing business including rent, utilities and employee costs

Details on relevant government bodies

Labor laws

Details on international agreements entered into by Dubai with full text

Details on Monetary policy and relevant links

Contact information

Detailed Analysis of Critical Parameters

List of economic opportunities across Dubai

GCC Countries

Saudi Arabia and Bahrain provide this information on the IPA website. They also publish an updated report and have this information available for the year 2010

Developed Economies

The USA has published an updated report and has this information available for the year 2010.

Similar Economies

Singapore provides information related to financial and tax incentives for various types of businesses/activities, government assistance and sector wise historical statistics.

Dubai

Dubai has provided this information, however this information is not available on its IPA website. This is available on Dubai Chamber of Commerce site under the section Information-Research and Reports. Also the report is available for the year 2007, which needs revision. The report is detailed and covers each section in sufficiently.

References

GCC Countries

http://www.sagia.gov.sa/en/Investor-tools/Investment-Opportunities/

Developed Economies

http://investamerica.gov/static/Invest%20in%20America%20Guide%20to%20Federal%20Incentives%20and%20Programs%20-%202010%20_Latest_iia_main_001164.pdf

Similar Economies

http://www.edb.gov.sg/etc/medialib/downloads/why_singapore.Par.46286.File.dat/Global%20Investor%20Programme%20Factsheet%20-%20English%20%28June%202009%29.pdf

Dubai

http://emiratesfreezone.com/

Data on cost of doing business including rent, utilities and employee costs

GCC Countries

Saudi & Bahrain provide data on factors such as commercial and industrial trends, residential trends, electricity charges, water and wage rates. They provide links to the relevant websites

Developed Economies

The US website has provided a comprehensive report and provided a list of basic cost and how these costs are different for different states in the country.

Similar Economies

The Hong Kong IPA website has links to other external websites which gives details on the rent and is updated till 2010. There are details on employee costs and utilities present on the census and statistics department website. All these are linked together in a systematic way.

Dubai

This information not present in the IPA website. The details available to the investor are not up-to-date and contain only partial details.

References

GCC Countries

http://www.sagia.gov.sa/en/Investment-climate/Costs-Of-Doing-Business/

Developed Economies

http://www.hlbi.com/index.php?option=com_content&view=article&id=37&Itemid=19

Similar Economies

http://www.censtatd.gov.hk/hong_kong_statistics/statistical_tables/index.jsp  

Dubai

http://www.emiratesfreezone.com/compare_investment.asp,

Infrastructure

GCC Countries

Saudi Arabia and Bahrain provide information on the transport and logistics facilities in the respective countries and the initiatives undertaken on development of these factors. Besides the above mentioned, the websites also provide the details of telecom operators in the countries.  These factors help a prospective investor in analyzing the infrastructure support in the target country

Developed Economies

US website has provided comprehensive information on infrastructure state wise. The information includes number of Highways, Marine ports, Inland waterways, Airports, Fed-Ex Hubs, Rail and Highway miles in each state as well as information about the industries

Similar Economies

The Hong Kong IPA website provides well structured data on infrastructure. It gives details on logistics, cargo, airports, border traffic, wi-fi access and telecommunications

Dubai

Dubai IPA website does not provide information on this parameter. Minimal information is available on their website.

References

GCC Countries

http://www.sagia.gov.sa/Investment-climate/Supporting-Your-Business-/Infrastructure/

Developed Economies

http://iedc.in.gov/assets/files/Docs/Fact%20Summary/Executive%20Fact%20Sheet%206%2015.pdf

Similar Economies

http://www.investhk.gov.hk/default_bodies/whyhk/en_infrastructure.html

Dubai

http://www.emiratesfreezone.com/dubai_busines_investment_park.asp

Monetary & Fiscal Policy

GCC Countries

Saudi Arabia and Bahrain provide detailed information on this parameter as well as the relevant links to the central statistics department websites on their IPA websites. Saudi Arabia and Bahrain also provide detailed interest rates for various Government bonds and other economy rates.

Developed Economies

Canada publishes this information on the department of finance website and has provided a link on its IPA website. It has presented the detailed monetary and fiscal budget reports for the last 10 years and also provides update on economic and fiscal projections.

Similar Economies

Hong Kong and Singapore IPAs provide detailed information on these three parameters on their respective external links. Singapore also provides interest rates for various Government bonds, Fixed Deposits, Savings Accounts. Inflation and interest rates are also provides quarterly data for the past 2 years. Singapore provides a link to the Monetary Authority of Singapore, which provides details on the monetary policy and intricate details about the same.

Dubai

Latest Information on the inflation rate is available on www.dsc.gov.ae. Information on the tax rates and interest rates is not available at all.

References

GCC Countries

http://www.sagia.gov.sa/Investment-climate/Some-Things-You-Need-To-Know-/Monetary-Policy-/

Developed Economies

http://www.federalreserve.gov/econresdata/releases/statisticsdata.htm

Similar Economies

http://www.singstat.gov.sg/stats/themes/economy/ess/essa51.pdf

Dubai

http://www.dsc.gov.ae/Reports/Inflation-Year%202010.pdf

GCC Countries

Saudi Arabia, Qatar and Bahrain provide information on the various laws along with full text of the Act on the IPA website. These initiatives are immensely helpful for a prospective investor to get a sense of the legal regulation in the target country.

Developed Economies

The United States is widely recognized as one of the leading destinations for FDI, and the U.S. legal system's strengths are an important reason why this is the case. U.S. has provided details about the laws governing the region and how are the laws distinctive from the rest of the world. It provides details of laws relating to business activity, intellectual property, land lease and industry and commerce.

Similar Economies

Singapore provides details about the laws governing the region. It provides details of laws relating to business activity, intellectual property, land lease and industry and commerce.

Dubai

There is no mention of any laws pertaining specifically to FDI on the Dubai IPA website. The labour laws in Dubai are inherited from the ones applicable to UAE; however these are neither mentioned on the IPA website nor on the government website. Same is the case with international bi-lateral agreements.

References

GCC

http://www.sagia.gov.sa/en/Investment-climate/Some-Things-You-Need-To-Know-/Laws/

Developed Economies

http://investamerica.gov/static/Litigation%20and%20FDI%20FINAL_Latest_iia_main_001171.pdf

Similar Economies

http://www.business.gov.sg/EN/Government/LawsNRegulations/index.htm

Dubai

Information not available

GCC Countries

Saudi Arabia, Qatar and Bahrain provide information on their respective Strategic plans on their IPA websites.

Developed Economies

There is enough data provided on the websites of the developed economies related to the key sectors as well as their performance. Each country has identified their core sectors, which contribute to the economy and have published data related to the current economic scenario, business opportunities available and the performance of these sectors.

Similar Economies

The Singapore statistics website provides details and performance information about the various sectors in Singapore. This is followed in all similar economies.

Dubai

While the Dubai chambers portal provides information on various sectors and their respective performances, the performance information is also not up to date and to the level of detail that the investors would like to see.

References

GCC Countries

http://www.investinqatar.com.qa/environment/index.php

Developed Economies

http://www.investamerica.gov/fdiinusa/iia_main_001239.asp

Similar Economies

http://www.singstat.gov.sg/pubn/reference/yos10/yos2010.pdf

Dubai

http://www.dcci.gov.ae/content/Bulletin/Issue10/SectorMonEn_ISSUE10.pdf

GCC Countries

The Saudi Arabia websites provide information on their Investor Support Centre across the globe.

Developed Economies

USA provides detailed information on its website about all the FDI parameters or it provides the links to different US government sites that have relevant information. USA provides information in 8 different languages to attract investors from various parts of world.

Similar Economies

The Hong Kong and Singapore websites provide information on their Investor Support Center across the globe. Hong Kong on the other hand provides accessibility in 9 different languages, while Singapore provides the same in 4 languages.

Dubai

Dubai has provided information about their information support centre, however this information is not available on their IPA website. This is available on the official portal of Dubai Government and the Dubai Chambers site. The Dubai IPA website can be navigated in English and Arabic. The Dubai website matches up with the Saudi Arabia, Qatar and Bahrain website on this parameter.

References

GCC Countries

www.sagia.gov.sa

Developed Economies

http://investamerica.gov/home/iia_main_001155.asp

Similar Economies

www.edb.gov.sg

Dubai

www.dubai.ae

Overview: Supplementary Parameters

Scorecard

Information crucial to potential investors

Dubai

USA

UK

Canada

Singapore

Hong Kong

Saudi Arabia

Bahrain

Qatar

Key Economic Indicators

Real GDP

2

4

4

4

4

4

3

4

3

Real GDP per capita

0

4

4

0

4

4

3

3

3

Sector wise GDP

0

4

0

4

4

3

3

4

3

Population

4

4

4

4

4

4

3

3

4

Unemployment

4

4

4

4

4

4

3

0

3

Cost of Living Index

0

4

4

4

0

0

3

0

3

Revenues- Sector-wise

0

4

0

4

3

4

3

0

3

Costs- Sector-wise

0

4

0

0

3

4

3

0

3

Profit/Earnings - Sector-wise

0

4

2

4

3

4

3

0

3

Details of Exports, Imports and Re-Exports

3

4

4

4

4

4

3

3

4

FDI Details

Return on FDI

0

0

0

0

3

0

0

0

2

Investment Incentives to foreign investments

1

4

3

4

4

0

4

3

4

Future Plan

2

Forecasted new investments in each sector and sub sector

1

0

0

0

0

0

4

0

3

Details on sectors which need investment in near future from Dubai Strategic Growth Plan

1

4

0

0

0

0

4

0

0

Registration

Commercial/Company Registration

4

4

4

4

4

4

4

4

4

Application Form

4

4

0

4

4

4

4

1

4

Details on Residency and investor visa

4

4

4

3

4

4

4

4

4

Licenses and permits required/available

4

4

4

3

4

4

4

4

4

Timeline for Application Processing

0

4

4

4

4

4

4

0

4

Total Score (Maximum = 76)

32

68

45

56

60

55

62

33

61

Rank

Country

1

USA

2

Saudi Arabia

Key

Definition

3

Qatar

1

Available

4

Singapore

2

Available and Accessible

5

Canada

3

Available, Accessible and c

6

Hong Kong

4

Available, Accessible, Relevant and Detailed

7

UK

8

Bahrain

9

Dubai

Analysis

A comparison of all the countries revealed that USA scores a 68 on the reliability of data made available to investors whereas Dubai scores a 32, indicating that it is the worst performer. USA is hence established as the best practice country followed closely by Saudi Arabia and Qatar. Bahrain is the only neighboring country which does not provide adequate information. Similar economies such as Singapore and Hong Kong give adequate information but do not provide any details on their future plans and forecasts of investments in different sectors. This information is also not provided by USA, UK, Bahrain and Canada. In developed economies, UK is the least performing country.

Dubai does not provide information on the following data points:

Real GDP per Capita

Sector Wise GDP

Cost of Living Index

Sector Wise Revenues

Sector Wise Costs

Sector Wise Profit/Earnings

Return On FDI

Timeline for Application Process

Certain data points are inaccessible from the Dubai Government website as well as the IPA website. Information on the forecasted new investments in each sector and sub sector is inaccessible since no direct link is provided to the same from the relevant Dubai websites. Details on exports, imports and re-exports are available only in the Dubai Chamber of Commerce website and no links to the same are provided.

Dubai provides information on Dubai Strategic Plan which has data on information only till 2006.

It was observed that a lot of data available for Dubai is available only till 2008. Dubai does not have up to date information on the Real GDP. Countries such as USA, Hong Kong, Singapore, Canada and UK provide quarterly information till 2009, thus making the information detailed and reliable.

The subsequent pages give a detailed economy-wise analysis on the same parameters, followed by recommendations.

Detailed Analysis of Supplementary Parameters

GCC Countries

Real GDP is a critical economic parameter and is updated regularly and available to investors in GCC countries like Qatar and Saudi Arabia. In Bahrain, this data is further detailed and given for every quarter. Bahrain provides its real per capita GDP till 2009 for every quarter, while Qatar and Saudi Arabia provide this data on an annual basis till 2009. All the 3 GCC nations that were compared provide updated annual numbers of the sector wise GDP to their investors. Although not in great detail, Saudi Arabia and Qatar provide updated index numbers in their website. Saudi Arabia and Qatar also provide the sector wise costs, revenues and earnings for every fiscal year

Developed Economies

Most of this data is available and accessible on the website of the developed economies such as USA, UK and Canada. This is the basic information that is provided on the IPA as well as the national statistics centre of the respective country. Most importantly the said data which is provided is updated and therefore it could be possibly relied upon.

Similar Economies

Hong Kong and Singapore also do not provide any details about Cost of Living Index. Hong Kong gives detailed and accessible data about Real GDP per capita and sector-wise revenues, costs and profit earnings but does not have detailed information on the sector-wise GDP. The website provides annual figures and not quarterly

Dubai

The only indicators provided by Dubai consistently to its investors are population and unemployment. Majority of the other indicators are not accessible easily. The Real GDP of Dubai is available only until 2008. Dubai does not mention its real per capita GDP. Dubai does not mention the sector wise GDP, cost of living index, sector wise costs, revenues and earnings.

References

GCC Countries

http://www.sagia.gov.sa/Investment-climate/Some-Things-You-Need-To-Know-/Monetary-Policy-/

Developed Economies

http://www.statistics.gov.uk/glance/

Similar Economies

http://www.censtatd.gov.hk/hong_kong_statistics/statistical_tables/index.jsp

Dubai

http://www.dubai.ae

GCC Countries

Qatar provides historic data on the return on investment for FDI. This gives the investor a base to analyze the economic functionality and pace of the host country. This data, although not provided in Saudi Arabia or Bahrain, will provide meaningful information to prospective investors.

Developed

This data seems to be comprehensive to provide and therefore it has been observed that it is missing on the websites of other developed economies too. Most of the developed countries are not providing information related to return on FDI but provide information related to the incentives and rationales to invest in that particular economy. USA, UK as well as Canada provide the benefits of investing in their respective country.

Similar

Singapore provides information on returns from which FDIs benefitted till the year 2008. Investment Incentives are explicitly mentioned by the Singapore government on their website. The information is segregated into financial incentives and tax incentives.

Dubai

The government of Dubai provides some information about the incentives provided to boost investment, but this data in not available on the IPA website of Dubai. Alternatively, this is provided by the Department of Tourism & Commerce Marketing, Dubai on their website.

References

GCC Countries

http://www.sagia.gov.sa/Investment-climate/Some-Things-You-Need-To-Know-/Investment-Incentives/

Developed

http://www.ukti.gov.uk/investintheuk/whytheuk/topreasonstoinvest.html

Similar

http://www.edb.gov.sg/edb/sg/en_uk

Dubai

http://www.dubai.ae

GCC Countries

Saudi Arabia provides complete details about the forecasted investments into every sector and sub sector in full text for investors. This information is present in moderate detail in Qatar. Saudi Arabia also provides details about the sectors which need investments in the near future based on its medium term vision.

Developed Economies

This information has not been explicitly mentioned and highlighted in the websites of all developed nations

Similar Economies

Economies such as Singapore and Hong Kong do not provide information on future investments or sectors.

Dubai

Dubai provides a Dubai Strategic Plan Report for 2015, which is made available but the information given in the report is out dated

References

GCC Countries

www.sagia.gov.sa

Developed Economies

Data not available

Similar Economies

Data not available

Dubai

http://www.dubai.ae/en.portal?topic,hm_dxbstgplan,0,&_nfpb=true&_pageLabel=misc

GCC Countries

Countries like Saudi Arabia and Bahrain have the entire registration process given in detail with links from the IPA websites

Developed Economies

Most of the developed economies are providing the above mention information as it would assist the potential investor to analyze the regulations to be followed and the time taken to complete the legal and regulatory formalities. The UK government is providing a detail FAQ section related to setting up a business in the UK, covering details from the basic planning stage to growing an existing business.

Similar Economies

Countries like Singapore and Hong Kong have the entire registration process given in detail with links from the IPA websites

Dubai

Dubai has detailed and accessible information about company registration and application forms. The website has no details about timelines for the application process. The information on residency and investor visa and licenses and permits is available on the Dubai Government website in detail and gives an investor a good idea about the ease of doing business.

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