India, China see Dubai as best business location: Study

Dubai, Oct 4 (PTI) Indian and Chinese firms see Dubai
as the leading business centre in the Gulf region, but
negative perceptions regarding occupancy costs still remain, a
new report has said.
The report, 'Retreading The Silk Road', by Cushman
and Wakefield Middle East (C&W), was based on feedback from
the firm's agency division which suggested that commercial
leasing by companies from South Asia and Asia Pacific has been
on the rise.
C&W conducted a series of interviews with Chinese and
Indian companies already established in Dubai as well as with
those companies considering setting up in the region.
According to the report, across the board, Chinese
and Indian companies believe that Dubai offers the best
business environment as a result of its location, as well as
its superior infrastructure and transport links in comparison
with its regional peers.
However, there remains a perception in the market
that Dubai is as expensive and overcrowded as it was in the
boom years of 2006-2008.
Despite being part of much larger organisations, the
majority of businesses are currently operating small satellite
offices, with limited space requirements and minimal
head-count.
Kausuv Roy, Executive Director Cushman & Wakefield
India, said, "When Indian companies talk to us about setting
up an office in the Gulf, Dubai is naturally uppermost in
their minds because it meets their needs, offering a friendly
business environment, a large expatriate population and
historic trade links with South Asia.
"We therefore anticipate an increased number of
enquiries for office space to come out of India in the coming
period."
Michael Atwell, Head of C&W's Middle East Operations,
said, "Indian and Chinese companies are quite clearly looking
at Dubai as the ideal strategic location for their regional
business activities. However, it is vital that the city's
landlords offer the flexibility and support that these new
entrants, who are taking a cautious approach to regional
expansion, require.
"Although rents in areas like DIFC remain relatively
high, Dubai now offers improved affordability for those
looking to set up operations and the city must work harder to
challenge any misconception."
The companies interviewed cover a range of sectors –
Financial Services, Professional Services, IT, Leisure and
Tourism, Industrials and Manufacturing. PTI CORR NS
MHM