Re-Export Business in the Uae
Re-export business in the UAE
Re-exportation is one of the most important businesses in the UAE. It is the second source of income after the petroleum.
There are many causes of the development of the re-export business in the UAE. The main reason for development is the strategic location of the country which is almost in the center of the earth. This strategic location gave an opportunity for the UAE government to make the country a link between the Asian countries and the European countries by building huge airports and seaports to be able to provide all the facilities and modern equipment that makes the import and the re-export procedures fast and safe.
A further explanation for re-export development is the attractive work environment which is available in the country that encourages the global companies to start business here. For example, the government is not taking any customs or sales taxes from the companies, and offering free zones which are not subject to government restrictions at reasonable fees and charges. Also, the government gives the global companies many options of logistic services at competitive prices in comparison with neighboring countries. These cheap prices help the companies to reduce to expenses and give them chance to make more profit.
On the other side, the effects of the re-export business on the economy of the UAE caused an increase in the countries income from trading, and less dependence on oil exports. This diversity in sources of income will make long term benefit for the country and will keep the economy stable as much as possible if oil production fell for any reason.
In my opinion import and re-export acts are chances for creating more new jobs for the locals and expatriates who come from all over the world to work
Re-exportation is one of the most important businesses in the UAE. It is the second source of income after the petroleum.
There are many causes of the development of the re-export business in the UAE. The main reason for development is the strategic location of the country which is almost in the center of the earth. This strategic location gave an opportunity for the UAE government to make the country a link between the Asian countries and the European countries by building huge airports and seaports to be able to provide all the facilities and modern equipment that makes the import and the re-export procedures fast and safe.
A further explanation for re-export development is the attractive work environment which is available in the country that encourages the global companies to start business here. For example, the government is not taking any customs or sales taxes from the companies, and offering free zones which are not subject to government restrictions at reasonable fees and charges. Also, the government gives the global companies many options of logistic services at competitive prices in comparison with neighboring countries. These cheap prices help the companies to reduce to expenses and give them chance to make more profit.
On the other side, the effects of the re-export business on the economy of the UAE caused an increase in the countries income from trading, and less dependence on oil exports. This diversity in sources of income will make long term benefit for the country and will keep the economy stable as much as possible if oil production fell for any reason.
In my opinion import and re-export acts are chances for creating more new jobs for the locals and expatriates who come from all over the world to work