8 best cities in the Middle East for doing business

If you want to succeed in doing business in the Middle East, then you need to understand which major cities in the region you can start it in.

The heterogeneity of the Arab world, diverse in geography, ethnicity, religion and cultural practices, means that it is necessary to delve into the details of the economy and culture of each individual country and major cities in order to discover the opportunities available to the experienced businessman.

Abu Dhabi, United Arab Emirates

Located just 147 kilometers (91.3 miles) from Dubai, the city and emirate of Abu Dhabi — one excellent choice for doing business in the Middle East. As the capital of the UAE, Abu Dhabi is the seat of the Emirati government and home to the UAE President.  The emirate has one of the highest GDP per capita in the world — US$65,700 and is currently the country's richest emirate. It contributes 60% of the UAE's total GDP, despite being home to 34% of the total Emirati population. Abu Dhabi is also a city of great economic importance. Currently, more than one trillion dollars are invested here from all over the world. This makes it a hot spot for investors and entrepreneurs from different countries looking for new markets.

Like the rest of the UAE, Abu Dhabi has built its wealth on oil resources, which currently make up just under 50% of its GDP. The city is currently undergoing a major transition from an oil and gas-based economy and is diversifying with an increased focus on tourism and real estate projects. Thanks to the emergence of new real estate properties, Abu Dhabi often appears on lists of “The Most Expensive Cities in the World.” Its importance as an international financial center is being highlighted through events such as the prestigious Forbes 30/50 Spotlight 2024, which will be held here this March. It honors the world's 30 leading entrepreneurs under 30 and adds a new 50 Over 50 category specifically designed for women who have driven experience and leadership in their fields. According to Forbes, Abu Dhabi was chosen for this famous event because of its role as “one of the world's great crossroads.”

From the point of view of international business in Abu Dhabi — a city without taxes and duties. This makes it optimal for extensive trade, especially since the emirate of Abu Dhabi repatriates all profits from the foreign enterprise to the owners without retaining any income. This makes the city an extremely competitive option when choosing a new location to do business. The process of starting a business and restrictions on doing business are the same throughout the UAE. You can fully own a company without being a citizen of the country, etc.

Dubai, United Arab Emirates

Dubai, located on the shores of the Persian Gulf, next to the Gulf of Oman, is a major global city whose importance to the global economy is almost unparalleled. Its strategic location, strong economic diversification, excellent trade relations and prestige make it an excellent location for any business looking to expand or invest, especially in the Middle East, North Africa, Central and South Asia markets, or for those looking for a business opportunity in the Middle East region.

Dubai has established itself as a prosperous emirate and city through its oil industry. Thanks to this industry it has contributed to its current success as a cosmopolitan metropolis. The total GDP of the United Arab Emirates reached US$536 billion in 2024 and is projected to increase by 5% during this year and into 2025. While these figures represent the UAE as a whole, this economic performance is also representative of the Emirate of Dubai, which is home to 41% of the UAE's total population and is considered the second wealthiest emirate after Abu Dhabi.

Whereas oil production used to account for a whopping 50% of Dubai's revenue, it now accounts for less than 1%. This is thanks to other industries that are thriving in the Emirate, particularly wholesale and retail trade, as well as real estate and manufacturing. The tourism industry is also thriving in Dubai. 2023 was the best year for tourism here, with Dubai welcoming a record 1.22 million visitors, up 8% on 2022. Dubai has been named the world's top destination for 2024 by TripAdvisor Travelers' Choice Awards. We can assume that the travel, tourism and hospitality industry here will continue to develop at a gigantic pace.

Dubai's thriving economy attracts many international business ventures. If you want to start a business here, there are a few things you need to pay attention to. Ownership laws in the UAE have recently been updated in favor of foreigners, allowing them to own a majority stake in businesses in Dubai without an Emirati partner. According to the Dubai Economic Authority, 100% foreign ownership is available to more than 1,000 commercial and industrial enterprises. But some economic activities of strategic importance are restricted to foreigners and reserved for Emirati businesses. The process of starting a business can be difficult for those who do not know how to go through the lengthy process of registering it, so it is worth turning to specialist advice. UAE — member of the World Trade Organization (WTO).

Doha, Qatar

Doha, the capital of the peninsula and the state of Qatar, is another excellent option when choosing a place to do business in the Middle East and North Africa (MENA). Qatar ranks 5th in the world in terms of GDP per capita with US$84,900 and a national GDP of US$246.36 billion. Although it is difficult to find population statistics for Doha, given that it is a vast metropolis in a very small country (Qatar itself is only 160 km from north to south and 80 km from east to west), current estimates indicate that Qatar's population was 3 210,000 people. In 2023, 80% of these people will live in Doha.

The economic wealth of Doha and Qatar as a whole is entirely due to the discovery of oil on the peninsula in 1940. Before this event, Qatar's main source of income was pearl diving, an industry that all but collapsed shortly after Japan entered the market with farmed pearls. Oil and natural gas production accounts for the majority of the country's and city's income, but the government is seeking to move away from oil dependence and expand its sources of income. All major trading partners of Qatar — Asian countries (Japan, South Korea and India), making Doha an excellent location for businesses targeting Asian markets. Doha has seen significant growth in the real estate and construction sectors in recent years, especially in preparation for the 2022 FIFA World Cup in Qatar. It brought with it a massive economic boom. National GDP grew 2.7% from 2022 to 2023, almost double what it grew in 2023 alone. In addition, Qatar welcomed more than a million foreign visitors to watch the World Cup, leading to a welcome boost in revenue, especially in the hospitality sector.

To start a business in Qatar, you must first go through a lengthy registration process with the Ministry of Commerce and Business. Knowledge of Arabic or having a business partner who knows Arabic is mandatory as part of the incorporation process is the filing of articles of association, which must be prepared and written in Arabic before they can be accepted. Property laws in Qatar are stricter than in the UAE. Foreigners are not allowed to own a majority stake in businesses in the country. Therefore, you also need to find a business partner who is a citizen of the country and will own at least 51% of your company. A partner is not legally obligated to contribute financially to the venture or assist in the day-to-day running of the company and, as the majority owner, can terminate operations at any time. The partner must be either a Qatari individual or a local company that is 100% Qatari owned. Qatar is also a member of the WTO.

Cairo, Egypt

Egypt, home to one of the oldest civilizations in human history, has undergone radical changes since its existence. Cairo is now considered the largest city in Egypt, Africa and the entire Arab world, and its cultural significance is immeasurable for both past and modern civilization. It is also the current economic center of Egypt. Cairo's economic importance and cultural prominence make it one of the best places to do business in the Middle East.

Although Egypt's GDP is not as large as that of the Gulf countries, it has been growing steadily over the past five years at a rate of about 3.3% per year. Most of Cairo's income comes from the service sector, especially tourism. In addition to this, the city also has a significant construction industry. Not long ago, the government announced plans to develop 20 new cities around Cairo, which will accommodate not only Egyptians, but also expats working in the capital. With support from the International Monetary Fund, infrastructure has been significantly improved. Egypt is making progress in the field of renewable energy, being home to the fourth largest solar power plant in the world. Cairo also has a heavy industrial sector, i.e. hydrocarbon mining, textile industry, etc. The latter industry benefits from the Cairo Qualifying Industrial Zone (QIZ), which is a tax-free industrial park.

There are a number of restrictions for doing business in Cairo. Although non-citizens can own an LLC, if they wish to import goods for trade in Egypt, the LLC must be at least 51% Egyptian owned and have one Egyptian manager responsible for imports. In addition to this, foreigners are prohibited from working in certain sectors such as customs and tourism. There are also restrictions on the percentage of non-Egyptians who can be employed by companies based in Cairo. This is especially true in the computer services industry, where three years after launch, 60% of senior executives must be Egyptian. Despite this, Cairo is still an excellent choice to start your business. Egypt is also a member of the WTO.

Amman, Jordan

In the heart of the northern Middle East, between Iraq, Israel, Palestine, Saudi Arabia and Syria, lies the country of Jordan. The capital Amman was occupied by the Assyrians, Romans, Turks, Umayyads and many other great civilizations and has received many names throughout its long history dating back to the 13th century BC. Amman is now a major tourist destination, especially for citizens of the Gulf countries, and one of the most visited cities in the world. There are several multinational companies that are expanding their operations in Amman and operating from regional bases there. This is an excellent place for those who want to do business in the Middle East, especially in the Levant region (Israel, Jordan, Lebanon, Palestine, Syria).

Despite the heavy influx of refugees due to the ongoing conflicts in Syria and Iraq, Jordan remains relatively peaceful, meaning a stable and safe environment for doing business. The largest source of income for Jordan and Amman is the service sector. Tourism is a major focus due to the country's abundance of popular tourist destinations, including the city of Petra, which was named one of the Seven Wonders of the Modern World in 2007. Of particular interest is the direction of medical tourism in the kingdom. This is because Jordan has one of the best healthcare and education systems in the Middle East, with a large number of qualified medical professionals and well-equipped hospitals and clinics. Another major contributor to Amman's economy is heavy industry, which benefits from the presence of an investment zone.

Jordan does not have the oil resources available in the Persian Gulf, so its economy has not experienced a giant boom, but many startups are flocking to Amman, especially for technology and internet companies. Most of the content of web companies in the Arab world comes from Jordan. The Jordanian government actively encourages start-ups and makes efforts to facilitate entrepreneurial connections. If this trend continues, the world may see the development of a new Silicon Valley along the path of Bangalore, called the Silicon Plateau, which will become the "Silicon Hills".

Aqaba, Jordan

As Jordan's only seaport, the city of Aqaba has a unique location and offers unique opportunities for those who want to do business here. Aqaba is located in a special economic zone and its purpose is to promote Jordan's participation in the market and develop the country's economy. As a consequence of this, Aqaba's economy is growing slightly higher than the national average per year. Since it is Jordan's only seaport, almost all exports are carried out through this city.

Investors are showing interest in Aqaba, spurring the construction of Saraya Aqaba, which will become a giant luxury resort once the project is completed, and many other attractions targeting tourists, both local and foreign. The logistics industry is growing thanks to ships passing through the Gulf of Aqaba, which divides the states of Egypt, Israel, Palestine, Jordan and Saudi Arabia. Thanks to its close location to the Suez Canal, Aqaba can be an ideal location for businesses targeting African, Asian or European markets.

The same benefits and restrictions apply in Aqaba as in Amman, however, due to the status of a special economic zone, there are no taxes or duties on exported goods. The city is a duty-free zone with a flat tax rate of 5% on all net profits. Another advantage — no restrictions on foreign capital in some sectors, particularly tourism, retail trade and other commercial services. Foreigners can own 100% of the shares of a company without needing a Jordanian partner. In addition, there are no restrictions on the repatriation of profits. Aqaba — this is truly a great choice if you are looking for a place to do business in the Middle East.

Riyadh, Saudi Arabia

The capital of one of the richest countries in the world, Riyadh — an economic titan and Saudi Arabia's most prosperous city. With a national GDP of US$1,069 billion and an average GDP per capita of US$30,447, it is an excellent choice of location to do business in the Middle East.

Riyadh benefits enormously from the oil industry, which accounts for almost 40% of Saudi Arabia's total GDP. Thanks to this, the country is one of the leading members of OPEC. Riyadh and the whole of Saudi Arabia are currently experiencing a construction boom, which means that the country's heavy industry is on the rise. In terms of trade, due to the lack of arable land, the Kingdom imports large quantities of textile products and various equipment.

Riyadh's place on the world stage has been steadily increasing, especially given its successful bid for the 2030 World Expo. The Saudi government has invested heavily in the Expo, budgeting $7.8 billion for the event. This event will undoubtedly boost the local economy through the tourism and hospitality sectors. In fact, Saudi Arabia is the largest trading partner in the Middle East. One potential downside to doing business in Riyadh is the lack of ports or ocean access, as the city is landlocked. However, it has relatively quick and easy access to the cities of Jeddah, located on the Red Sea to the west, and Dammam, located on the Persian Gulf.

Jeddah, Saudi Arabia

The coastal city of Jeddah in Saudi Arabia is the Kingdom's gateway to the sea. Jeddah's strategic and economic importance is evident with increased investment in the city by the national government to develop a new port and transform it into a stronger regional trading hub that can compete with the increasingly prominent trade in the Persian Gulf. This is evidenced by the ongoing construction of the Kingdom Tower, which upon completion will become one of the largest buildings in the world, as well as Kingdom City. — construction project aimed at the economic and social development of the country. It is planned to be built in the north of Jeddah. The city also hosted Big 5 Saudi — annual forum of Saudi and international construction companies. There are many other similar events, such as the Concrete Zone and the LEED Workshop, that focus on creating greener businesses.

Due to Jeddah's close proximity to Mecca and Medina, the first and second holiest cities in all of Islam, many pilgrims participating in the Hajj must first pass through Jeddah on their way.

The city boasts the same advantages as Riyadh, but benefits from its location on the Red Sea.