The Middle East has been growing at double-digit growth rate and is a region boasting of some most diverse and lucrative markets in the world. German companies, which are typically used to structured, single-digit expansion rates in mature markets, operating in the Middle East though would be fascinating, but a challenging prospect. Also, demographically, Dubai and Middle East consist of some of the richest consumer segments throughout the world, who also possess a strong global outlook. Another benefit is that the government is investing hugely in infrastructure and its corporate environment is supported by younger workforce, who is more educated and technically-advanced. There are ample opportunities for German companies to consider Dubai and other Middle East markets, because they have huge long-term potential.
Dubai’s DMCC has opened a new office to enhance German business ties
Dubai Multi Commodities Centre (DMCC), which was conferred the title of “the global free zone of the year” last year, has recently announced that it would open a new representative office in Dusseldorf, Germany. The opening of this new office in one of Germany’s financial and trade centers will surely get many more European clients to DMCC’s doorstep.
It will provide an easier option to German businesses to form a company without the need to travel to Dubai. Looking at some data, in 2017, the non-oil trade done between Dubai and Germany had touched about $11 billion.
This move has been taken as per DMCC’s plan to take advantage of growing interest shown by German companies to look at better trade relations with Dubai.
Felix Neugart, who is the CEO of the German Emirati Joint Council for Industry & Commerce (AHK) was of the view that over the last few years, a strong connection has been built between the German and UAE business communities. The free zones in Dubai play a major role in bringing in global businesses into the UAE. The opening of a new DMCC office in Duesseldorf is a move to enhance the relations amid German industry circuit and the DMCC with its global business community. The new office is going to improve trade and will foster newer investment opportunities.
DMCC and German Arabian Advisory have also signed a memorandum of understanding (MoU) in 2016 to explore establishing an advisory service in Düsseldorf. This is also a part of DMCC’s endeavor to draw German businesses to setup their offices and presence in Dubai and further enhance their ties.
Some examples of German companies looking at investing in Dubai
- Germany’s Meilenstein has entered UAE market with an investment of $327mn: Meilenstein is a German real estate developing company, which has announced its entry into the real estate market of the UAE as it is coming up with eight projects to be built in various locations in Dubai, totaling to $327mn (AED1.2b).
- Siemens is growing its reach in the Middle East with an investment of $500 million in Internet of Things (IoT): Siemens, a German multinational, is getting in the Middle East by investing almost $500 million in the digital space spread over the coming three years. Siemens is planning to build a couple of new IoT facilities in Dubai and Abu Dhabi.
If you think it is a good prospect for company formation in Dubai, but don’t know how to go about it, leave it on our experts. Get in touch with our professionals and we would assist you in each step.