'UAE holds business potential'

The United Arab Emirates has bright business opportunities as it offers high rate of return, hassle-free business, no taxation and 24-hour power supply, according to Sudhir Kumar Shetty, General Manager, UAE Exchange Centre, Abu Dhabi .

Speaking on 'Business Opportunities for Indians in UAE ' organised by the Public Relations Society of India, Mangalore -Manipal Chapter, he said the Gulf region was no more the same as in the early 60's when it attracted a lot of unskilled labour to build its infrastructure.

After the formation of UAE in 1972, it is mandatory for a firm to start business with a local partner who should be given a majority share.

But in the last four or five years, free trade zones like Jebel Ali in Dubai have come up where this rule is done away with. 70 per cent of the companies operating here are Indians. Many firms have an informal agreement where a sponsorship fee is being paid to the local partner in lieu of shareholding .

According to Shetty, the UAE has less number of manufacturing industries due to paucity of raw material and cheap of labour.

As per 1998 census, UAE has a population of 37 lakhs out of which 11lakhs are Indians.

Most of the business houses are owned, manned and run by Indians who have a great reputation. " If you want to set up business in Dubai today, you will get a licence in a week which has to be renewed every year", he said.