The Dubai Multi Commodities Centre (DMCC) said there has been a surge in Chinese companies joining the low-tax free trade zone.
Registrations of Chinese companies have grown by an average of 46 percent annually over the last five years, which the DMCC attributes to the China business community using Dubai as a location to establish closer trade ties with emerging and established markets.
The announcement by the DMCC was made during a seven-day roadshow by DMCC representatives across China, and come on the heels of deals to allow physical and financial trading of Chinese coffee beans through Dubai, in addition to existing trade flows for tea, gold, and other commodities.
The DMCC is a free trade zone in the United Arab Emirates offering zero percent personal and corporate tax rates, as well as 100 percent capital repatriation with no currency restrictions.
Commenting on the increase in Chinese company registrations, GautamSashittal, CEO of the DMCC, said: "Chinese companies setting up in Dubai and DMCC are on the rise. In fact, some of China's biggest and most successful companies are already among our members, including: Hikvision, Power China, Hisense, Sinopec, China Harbour Engineering Company, and China State Construction Engineering Corporation. A significant reason they have come to Dubai and our free zone is that our city connects the West to East corridor with China's Belt and Road initiative."
He continued: "Our call to action is clear - DMCC wants Chinese business to come and thrive in Dubai and as a market maker, we do everything we can to enable their trade vision. Dubai's unrivalled connectivity means that eight hours on a plane in any direction gives access to 65 percent of the global GDP and two-thirds of the world population. If we look at Dubai's top trading partners China, India, and the US - that level of connectivity becomes very clear – Dubai really is the gateway between East and West, North and South."
By Courtesy of Lowtax