Apr 222008
 

Well, you had better hurry and book a flight to Dubai ASAP (I recommend DialAFlight for easy booking of overseas trips).

Why Dubai? 

Because Dubai (part of the United Arab Emirates) has the largest collection of genuine Economic Free Zones (aka Free Ports) currently operating-

  • Jebel Ali Free Zone
  • Dubai Internet City
  • Dubai Media City
  • Dubai Knowledge Village
  • Dubai Healthcare City
  • Dubai International Financial Center
  • DuBiotech
  • Dubai Outsource Zone
  • International Media and Production Zone
  • Dubai Studio City

Each of these free ports has a specific function (as should be evident by their names, above) and each has been extraordinary successful in drawing corporations of all sizes (from all over the world) to Dubai in order to take advantage of the opportunity to operate their businesses as they desire without having to run every decision through some government bureaucracy or hire additional personnel to ensure they’re properly completing all the required government paperwork.  Not to mention the simple tax savings (and related savings in terms of attorneys and accountants).

Why Hurry?

Because although the free ports are serving their intended purpose admirably well and business is booming within their borders, the government of Dubai is on the fast track to financial ruin.  in addition to price controls on fuel and basic commodities such as rice, private landlords are not permitted to raise rents more than 5%, while rents collected directly by the government have increased 24% in the last year.  Additionally, the Dubai government insists on keeping their local currency, the Arab Emirates Dollar, tied to the falling US Dollar which is contributing to record rates of inflation.

In other words, the entire infrastructure is set to collapse and while the corporations in the free ports should remain relatively unscathed, their employees must live outside the economic free zones and are suffering the deprivation of government gone awry.

  One Response to “Want To See A Free Port In Action?”

  1. Since I don’t live in the area, I’m curious to know who will become the next regional power player, if Dubai is on the road to ruin? I’ve heard Qatar is making some waves politically, but will that also translate into economic and financial clout?

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