Leveraging Dubai as a Hub for Global Expansion: A Strategic Move for Indian FMCG Companies
IMC Group (Member Firm of Andersen Global)
A leading cross border advisory firm offering international tax , corporate services, compliance and regulatory services
An interesting trend reveals that FMCG companies in India are increasingly turning to Dubai as a key global hub for global expansion. The strategic location of Dubai at the crossroads of continents presents FMCG firms with unparalleled advantages to expand their global footprint. As the international business landscape looks dynamic, these firms are seeking professional assistance to ensure seamless company incorporation in Dubai . In this edition, we have come up with a comprehensive overview of why Dubai has emerged as the preferred choice for Indian FMCG firms.
Strategic Location and Potential for Business Environment
The tactical location of Dubai between the East and the West, along with its world-class infrastructure makes it an ideal base for Indian FMCG companies. These firms also benefit from the business-friendly environment in the UAE while expanding globally. The free trade zones in the city, like the Jebel Ali Free Zone (Jafza), offer lucrative incentives to these firms. Some of these perks include 100% foreign ownership and tax exemptions, which streamline business operations and make processes cost-effective.
Dubai serves as a gateway to lucrative markets in the Middle East, Africa, and Europe. Thanks to its extensive network of free trade agreements and strategic partnerships, Indian FMCG companies can capitalize on these trade corridors while expanding their customer base globally.
Trade and Logistics Advantage
Dubai boasts a robust logistics ecosystem, with the Jebel Ali Port and Al Maktoum International Airport connecting more than 150 maritime destinations and 300 cities worldwide. This logistical advantage boosts supply chain management and helps FMCG firms in their importing and exporting endeavours.
Bharat Mart Initiative
The upcoming Bharat Mart in Jafza is all set to revolutionize the trading landscape for Indian businesses in Dubai. The mega warehousing facility is likely to become operational by 2025 and will serve as a dedicated platform for Indian companies to distribute and re-export their products regionally and globally. Covering a massive space of more than 700,000 square feet, the warehousing facility will offer advanced facilities customized to meet the needs of different businesses.
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Supportive Legal Framework and Incentives
The legal framework in the UAE is supportive to Indian FMCG companies. The Commercial Agencies Law and the Investment Promotion and Protection Agreements (IPPAs) make the business environment stable and transparent. These measures protect the rights and interests of the investors while minimizing investment risks, fostering a conducive atmosphere for the growth and sustainability of businesses.
Cultural Aspects
The presence of a significant Indian population in the UAE nurtures a healthy cultural affinity with the country. This goes a long way in facilitating market entry and engaging consumers, particularly for FMCG companies. These firms understand the local preferences and customer behaviour and are coming up with tailored products. This is one of the reasons why the sale of FMCG goods is gaining traction in the Gulf market.
Ease of Setting up Business
With the UAE streamlining the process of setting up a business in Dubai through online platforms, foreign businesses can incorporate their companies in Dubai in a quick time. Besides, entrepreneurs enjoy the flexibility to choose from a wide range of business licenses and legal structures based on their operational needs.
Professional Assistance for Setting Up a Business in Dubai
The emergence of Dubai as a global business hub presents tremendous opportunities for Indian FMCG companies to scale their operations internationally. Entrepreneurs wondering as Indian how to start a Business in Dubai can reach out to the IMC Group for professional support and comprehensive consultation. Leading FMCG firms in India seek expert assistance to ensure legal compliance during their company incorporation in Dubai and capitalize on the facilities offered by the UAE government. With professionals on their side, forward-thinking FMCG companies can confidently expand overseas and tap fresh customer bases in global markets.