Ease of Doing Business Comparison Between Sydney and Dubai
When it comes to the ease of doing business, Sydney and Dubai are two different and competitive cities. This paper aims to compare and contrast the two major global cities to assist potential entrepreneurs and investors to identify the business environments of the two cities.
Regulatory Environment
Sydney is governed by Australia’s strong legal and regulatory system thus providing a good operating environment. In contract enforcement and property registration, it is one of the leading cities in the world. Nonetheless, the abundance of rules and regulations and relatively high taxes may be the issues that new ventures may face.
While Dubai has greatly simplified its regulatory procedures in the last few years, the procedures in London are still relatively complicated. Over the years, the UAE government has put in place several measures to ease the process of doing business. The country has been placed in the best position in the world in aspects such as getting electricity, construction permits, and basically the enforcement of contracts. The emirate has also streamlined many procedures and gone the digital way thus freeing businesses from a lot of paperwork.
Taxation
Corporation tax rate in Australia and in particular in Sydney is 30% which is important in business. Similarly, Australia has the GST and other state taxes that will also increase the total expenses of the business.
With the taxation system failing only foreign banks and oil companies have to pay corporate income tax in Dubai. There also are no personal income taxes in the country. To this are added the few tax incentives and exceptions afforded by the free zones of Dubai for foreign investors.
Business Incorporation and Ownership
Despite the fact that incorporation of business in Sydney is a simple process, there may be certain limitations to ownership based on the type of business you intend to operate. The procedures are quite clear but the process may be slow and there must be a very high level of compliance to the procedure.
However, as a result of the recent legal changes, the foreign investment is allowed in Dubai up to 100% in some industries. The business environment is also good and one can easily start business and with less strain. The existence of different types of business licenses enhances the chances of entrepreneurs.
Infrastructure and Accessibility
Sydney has enough physical facilities that are required by any city in the aspect of transportation and communication among others. It is located geographically to act as the bridge between the Asia Pacific region and thus has a potential for trade.
Also, Dubai is geographically positioned to serve the European, Asian and African markets together giving access to 1.5 billion consumers. There is a good infrastructure and system in the city like the logistics and transportation systems which make the city to be good for business.
Multicultural Environment and Workforce
As one of the most cosmopolitan cities in the world, Sydney is a good place for business. Thus, one can speak about city as about an open market where talented employees appear and, therefore, a competition for staff is present.
It is also a cosmopolitan city and more than half of the population is composed of foreigners. It is quite useful when companies want to target many markets and make the best out of the available people and their attitudes.
Security and Quality of Life
When comparing the two cities in terms of quality of life, the two are quite similar, although Dubai has a reputation for safety issues. Through this show, it can be easily seen that it is one of the safest cities in the world that makes a favorable environment for business and the foreign forces operating in the area. Sydney is also a safe city and has all the social services needed for the people including health care facilities and learning institutions.
Sydney and Dubai are both good places to do business but they are different in the sense that the needs they meet are different. Due to tax exemptions, easy and clear procedures, and a favorable geographic position, Dubai is very interesting for foreign investors. At the same time, the stable regulatory environment and well-developed legal system of Sydney become the reliable basis for the company’s activity. It will come down to what the business wants to achieve and what it needs to get done.