To encourage Dubai company formation, the government offers incentives including freedom from corporate taxation and 100% foreign ownership of companies under certain circumstances.

Entrepreneurs considering Dubai company formation are encouraged by Dubai's aggressive growth strategy through to 2015. Under the Dubai Strategic Plan 2015, the future strategic growth of Dubai is based on key ‘building blocks’ which include tourism, trade, transportation and finance. Specifically, the Plan targets the following:

i) Dubai will maintain double-digit economic growth, achieve a GDP of $108 billion and increase real GDP per capita to $44,000 by 2015;

ii) Economic productivity will increase 4% annually, creating new sectors of growth with sustainable competitive advantages.

In Q1 2009, Dubai's GDP increased by 0.3% despite the global economic crisis. This growth was fuelled by key sectors that remained resilient to the crisis: wholesale retail trade, manufacturing, restaurants and hotels, government services and the banking sector (Dubai Chamber of Commerce and Industry).

Dubai has attracted large inflows of foreign direct investment (FDI). For several years since 2000 the Dubai economy was growing an average of 13% annually thanks to strong regional liquidity and major construction and infrastructure developments in progress. The recent financial crisis has slowed growth but sectors of the Dubai economy such as the services industry, manufacturing, financial services has shown growth. Oil contributes approximately 6% of gross national product of Dubai.

Dubai's economy enjoys strong consumer confidence, underpinned by low or negative real interest rates and rising household income and wealth, which have bolstered private consumption. These are positive economic indicators for entrepreneurs considering Dubai company formation.

According to the latest ranking in the 2009 Global Financial Centres Index, Dubai is now one of the top 25 financial centres. Consequently, an increasingly wide array of financial services are available to investors during and after Dubai company formation. Following Dubai company incorporation, many entrepreneurs open a corporate bank account with one of the many international banks with branches in Dubai, including HSBC, Standard Chartered and Citibank.

That said, Dubai company formation can be difficult and expensive because of i) high government fees ii) inconsistent and complex Dubai company law and iii) inefficient bureaucracy. According to the World Bank's Doing Business 2010 Survey, the UAE is ranked as the world's 33rd easiest place to do business. The survey measures factors including business start up procedures, time, cost and minimum capital required to start a business. The UAE is also negatively ranked as the world's 46th freest economy in the Heritage Organization's 2010 Index of Economic Freedom, a measure of freedom enjoyed in  business, trade, monetary, financial, investment and labour markets.