A clear trend has emerged in recent years: More and more companies from Germany are deciding to relocate to Dubai. This decision may seem surprising at first glance, but a closer look reveals numerous advantages that make Dubai attractive for German companies. In this article, we highlight the main reasons why Dubai is increasingly becoming the preferred business location for German companies.

1. Tax advantages

One of the main reasons for German companies relocating to Dubai is the extremely attractive tax system. While German companies are faced with a relatively high tax burden - including corporate tax and trade tax - Dubai offers considerable relief. There is no income tax and, until recently, no corporate tax. While a corporate tax of 9 % on profits over AED 375,000 (approximately €94,000) has been introduced since 2023, this remains highly competitive compared to Germany, where corporate tax is often 30 % or more.

This tax relief gives German companies considerable financial leeway, which can either be reinvested in the company or used for other business initiatives. Many German entrepreneurs see this as an opportunity to maximize their profit margins and increase their global competitiveness.

2. Less bureaucracy and simple company formation

Bureaucracy in Germany is a real obstacle for many companies, slowing down their growth opportunities. The process of setting up a company is often lengthy and involves high requirements. In Dubai, on the other hand, the government has created a business-friendly environment that aims to make the incorporation process as simple and quick as possible. Many formalities can be completed online and there are numerous advisory services available to further simplify the incorporation process.

Free zones, such as the Dubai International Financial Centre (DIFC) or the Jebel Ali Free Zone (JAFZA), offer foreign companies the opportunity to own 100 % of their business, which is not possible in many other countries in the region. These zones also offer numerous other benefits, including duty-free, no foreign exchange restrictions and simplified administrative processes. For German entrepreneurs looking for a flexible and efficient business environment, this is a huge incentive.

3. Strategic location and access to international markets

Dubai is ideally located between Europe, Asia and Africa, making it a perfect base for companies looking to expand globally. The location allows companies to reach key markets in Europe, the Middle East, India and Africa within a few hours. Dubai International Airport is one of the busiest in the world and offers numerous flight connections, facilitating international business travel.

For German companies looking to expand their business beyond Europe, relocating to Dubai is a logical decision. The city offers a platform to expand into both emerging markets and established trade centers. In addition, Dubai is one of the largest trading centers in the Middle East, which makes the city particularly attractive for trading companies and logistics service providers.

4. Business-friendly legislation and investor protection

Another strong argument for German companies to relocate to Dubai is the business-friendly legislation. The government of the United Arab Emirates has worked hard in recent years to create a legal environment that protects foreign investors and encourages companies to invest in the region. These measures include a robust legal framework that protects companies from unforeseen interventions and risks.

In comparison, many German companies often find legislation in Germany to be a hindrance, especially when it comes to labor law, corporate taxes and regulatory requirements. The flexibility Dubai offers in these areas is an important factor in attracting German companies, especially in times of growing bureaucracy and regulatory uncertainty in Europe.

5. Labor market and skilled workers from all over the world

Dubai is a hub for international talent. Due to its open economic policy and growing importance as a global financial and trade center, the city attracts highly skilled workers from all over the world. This is particularly attractive for German companies looking for professionals in areas such as technology, finance, engineering or sales.

While the labor market in Germany is increasingly affected by a shortage of skilled workers, Dubai offers access to a dynamic and diverse talent pool. In addition, non-wage labor costs in Dubai are lower than in Germany, as there are no social security contributions for employees. This makes the recruitment of skilled workers significantly more cost-efficient for German companies.

6. Attractive lifestyle and high quality of life

In addition to the economic benefits, the quality of life also plays an important role in the decision to move to Dubai. The city offers a high level of security, modern infrastructure and a luxurious lifestyle. For German entrepreneurs and their families, Dubai offers first-class housing options, international schools and a variety of leisure activities ranging from beaches and golf courses to desert safaris.

The pleasant climate and multicultural society make Dubai an attractive place to live and work. Access to international healthcare and state-of-the-art hospitals is also an important factor in favor of Dubai for many German expats.

7. Stable economy and political security

In a world increasingly characterized by uncertainty, Dubai offers a stable and secure environment for businesses. The United Arab Emirates is politically stable and has a strong, growth-oriented economy. The government is committed to encouraging foreign investors and businesses and therefore offers a safe and predictable business environment.

Many German companies are faced with political uncertainties in Europe, such as Brexit, geopolitical tensions and changing economic conditions. In this context, Dubai offers a stable environment in which companies can plan for the long term and feel secure.

8. Digital transformation and innovation

Dubai has developed into a center for innovation and technological progress. The city is investing heavily in digital infrastructure, artificial intelligence and smart city projects. Initiatives such as the Dubai Blockchain Strategy or the Dubai 3D Printing Strategy show how much the city is aiming to take a leading role in the digital transformation.

German companies, particularly in the technology sector, benefit from this willingness to innovate and the progressive framework conditions. Companies can develop, test and launch new technologies more easily in Dubai, which is often more difficult in regulated markets such as Germany.

9. Access to capital and financing

Dubai is a global financial center that offers international companies access to capital markets and investments. German companies choosing Dubai as a location benefit from the presence of numerous financial institutions, venture capital firms and family offices looking to invest in innovative companies. Dubai also offers various government support programs aimed at supporting start-ups and growth companies.

The ability to easily raise capital is a key advantage for German companies looking to expand or start up in Dubai.

Dubai offers German companies a number of advantages that make relocating to the country attractive. From tax relief, less bureaucracy and a strategically favorable location to a dynamic labor market and an innovation-friendly environment - the reasons why more and more companies from Germany are moving to Dubai are manifold. In times of increasing uncertainty in Europe, Dubai also offers a stable, business-friendly and secure environment that enables German companies to grow sustainably and achieve their global goals. It is therefore no wonder that more and more German companies are choosing Dubai as their new business location.