For commodities trading company with turnover of AED 62 million (US$17 M) in 2009, Dubai’s strategic location, is a big draw
For most of the 1,450 companies at the Dubai Airport Freezone, tax free incentives such as no levying of company and personal income taxes are the major factors in the decision for a multinational company to open a branch or regional office in the Freezone.
“The company’s annual turnover in 2009 touched AED 62 million,” said Naim Zehil, Director of RMM Global FZCO.
“For RMM Global FZCO, a commodities trading, and logistics company Dubai’s strategic location between the Far East and European market, transparency, security, stability and pro-business policies of Dubai and the UAE’s visionary leadership were the main factors in RMM Global’s decision to base their worldwide operations’ main office in Dubai from its earlier location in London,” he added.
“In 2003 while scouting for a business location for our company, I told my partner that I would base the decision to shift based on the friendliness of the businessmen, investors, business environment and customer services,” Zehil said.
This was a very positive indication of Dubai’s welcoming attitude for investors and one of the factors in my decision to move to Dubai.”
“As companies engaged in international commodities , trading partners in our main markets are Japan, Europe, US, Middle East, UAE and India. Thus it is very advantageous to come to office in Dubai and find the stock markets and offices in Japan still open. This will be not so if we are based in London,” said Zehil.
He added that in his business, his trading partners would look for the location of trading partners and would not look kindly to a company based in a country with in security, instability or follow laws not accepted in other major countries. “Being based at the Dubai Airport Freezone, is important as the emirate is known for political stability and is known to adopt international trading laws.”
He explained that foodstuff and pharmaceutical companies relying on their raw materials would rather pay an additional US$10 per metric tonne of raw material rather than buy cheap raw material from a company based in a country with political instability. Companies want to be assured that their goods would be on the shelves no matter what. Political instability and business cannot mix.”
“RMM Global FZCO is based in the Freezone since 2006 and will continue to operate out of the Dubai Airport Freezone. Other advantages in being close to the airport he said, is the frequency in which he and his partner travel. “At the Freezone, I would be at the airline check in counter 15 minutes after leaving my office.”
“RMM represents the diversity of companies benefitting from the strategic location of the Dubai Airport Freezone. “Who would have imagined that a successful commodities trading company would benefit in such a scale from the Freezone’s location?” said Mr. Mohammed bin Suwailem, Sales Director of Dubai Airport Freezone. “The important factors for RMM’s success, Dubai strategic location, enlightened laws and pro business policies and minimally restricted freedom in commerce environment in the UAE supported by our benevolent Rulers are the same reason that Dubai and the UAE is where it is today – a successful trading hub in the Gulf.”
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