5 Reasons Why International Investors Prefer the United States Over Dubai

Introduction

Choosing the country where you establish your business is a crucial decision that can define the success of your venture. Although Dubai has gained popularity in recent years, the United States remains the preferred destination for international investors.

Below, we present five key reasons why the U.S. surpasses Dubai as the best place to establish your company.

1. Legal Security and Stability in the U.S.

Legal security is fundamental in the business world. The United States offers a stable and predictable legal environment, based on precedents that protect business rights, allowing investors to plan with confidence.

On the other hand, in Dubai, laws can change quickly, and their interpretation is variable. According to The World Justice Project, Dubai ranks 30th in Rule of Law, while the U.S. ranks 20th, reflecting greater stability. LegalEase Inc. chose the U.S. for the certainty and protection it offers, avoiding the risks of unexpected regulatory changes in Dubai.

2. Access to Financing and Venture Capital in the U.S.

Access to financing is crucial for the growth of a company. The United States has one of the most dynamic venture capital ecosystems in the world, with over $130 billion invested in startups in 2023 alone, according to the NVCA.

In comparison, Dubai has a limited capital market, focused on specific sectors like oil and gas. Health Innovators Inc., a biotech startup, found multiple rounds of financing in Silicon Valley, something much more difficult to achieve in Dubai.

3. Access to Global Markets from the U.S.

The United States is a gateway to global markets, offering direct access to North America, Europe, Asia, and Latin America, facilitating international expansion.

In contrast, Dubai, although strategically located, is more focused on the regional markets of the Middle East and Africa, which can limit global expansion. Fashion Forward Inc. chose New York to take advantage of direct access to global markets and avoid regional barriers in Dubai.

4. Operational and Tax Flexibility in the U.S.

The United States offers unparalleled operational flexibility, with structures like LLCs and Corporations that allow for tax optimization and operations without significant restrictions. According to PwC, companies in the U.S. can benefit from tax deductions and international treaties that are not available in Dubai.

In Dubai, although free zones offer tax exemptions, these are limited to certain areas, and operating outside of them requires a local partner who controls at least 51% of the company. Global Trade LLC highlighted how easily they could expand their operation in the U.S. compared to the restrictions in Dubai.

5. World-Class Business Infrastructure in the U.S.

The United States has a well-developed business infrastructure that includes transportation, telecommunications, and an accessible network of suppliers across the country, facilitating the operation and expansion of businesses of any size.

In comparison, although Dubai has invested in infrastructure, some areas still lack the necessary support for certain sectors, especially outside key cities like Dubai. Global Logistics LLC chose to establish itself in Texas due to the world-class infrastructure and direct access to suppliers and customers throughout North America, something they did not find in Dubai.

Conclusion

While Dubai offers certain attractions for investors, the United States stands out as the preferred destination for establishing and growing a business. With solid legal security, abundant access to capital, operational flexibility, access to global markets, and world-class business infrastructure, the U.S. offers an unparalleled environment for business success.

If you're considering where to establish your company, our experts at Prodezk are here to help you take advantage of all the benefits the United States has to offer.