Alessandro Palombo, who lives in Dubai and has set up two businesses in Singapore, said that while people in Dubai often flaunt their wealth, there are millions of people in Singapore who sell flip-flops. He said there are millionaires and that the lifestyle in Dubai could be temporary. Singapore, on the other hand, can feel small, he says.
This told essay is based on transcribed conversations with Lisbon-based entrepreneur Alessandro Palombo, 36, about doing business in Dubai and Singapore. The following has been edited for length and clarity.
I have lived in Dubai for about 4 years and run two businesses in Singapore.
I started my career in law, but pivoted to startups. I currently live in Lisbon and focus on running the Golden Visa Fund Fund Advisor, which helps non-Europeans obtain residency and citizenship in Portugal.
I moved to Dubai in 2019. I used Dubai as my headquarters and traveled from there frequently for work and startups. My team members were in Asia, so connectivity to them from Dubai was good. I often went to Singapore on business.
I started two businesses in Singapore last year, including a fund advisor. I travel frequently to manage both companies, and I plan to spend at least a quarter of my time there going forward.
Here I will compare what I think about Dubai and Singapore. Overall, I think both are great places to do business. Dubai is a good place to do business with Europe or the US, and Singapore is the best place to do business in Asia.
Luxury is expressed more modestly in Singapore than in Dubai.
While in Dubai people often flaunt their wealth, Singapore is more modest, although some billionaires wore flip-flops.
Related articles
In Dubai, you can get lost among the hundreds of luxury shops at Dubai Mall. Find the best of all luxury brands in one place.
Vacationing in Dubai has luxury built into it, but when you live there, luxury isn’t at the heart of the experience. A week-long stay typically transports you to upscale tourist attractions and restaurants, but living in Dubai exposes you to a more down-to-earth side. You can dine in an authentic Lebanese restaurant for 25 euros per person. This is approximately the same in US dollars.
On the other hand, I personally met more wealthy and powerful people in Singapore than in Dubai. This may just be a coincidence in my network, but I feel like there are more people who are already successful than there are people who are about to become successful. I have met some wealthy people who wear ordinary clothes but have large amounts of assets, including luxury cars.
In Dubai, business meetings are often held in luxurious offices, but in Singapore we’ve seen more personal touches, including a CEO’s private room complete with an extraordinary cigar collection and premium liquor. These items reflect wealth but are not immediately visible.
Consider your customer base when deciding which city is best for your business.
I think both places are great places for digital nomads and entrepreneurs.
The biggest value proposition in Dubai is 0% personal income tax. This is one of the very rare places in the world where there are no taxes on earnings, capital gains, or dividends. This is a huge advantage for people who have wealth to preserve and digital nomads. However, 5% value added tax will be charged.
If you are doing business with Europe or the US, Dubai is a better choice in terms of time zones.
Singapore, on the other hand, offers unparalleled ease of doing business in Asia without the language barrier that exists in countries such as China, where Mandarin is essential. However, if you have clients in Europe, the time difference can cause problems.
Singapore has reasonable personal income taxes and thoughtful tax exemptions for startups. Additionally, there are no capital gains taxes or foreign withholding taxes. Singapore is a very efficient city. Opening a bank account is faster than in Dubai. Clear tax guidelines make it easy to do business.
However, there are challenges to entrepreneurship in both regions. In Dubai, possible ways to obtain a visa include establishing a company or obtaining a freelance license. While possible, it’s more complicated than it seems, and it often helps to have help from a trusted local partner. Although it is easy to set up a company in Singapore, there are additional steps required to obtain the necessary employment passes.
Living in both cities has some disadvantages
I think the lifestyle can be very temporary in Dubai. There is a large expat population and many consider their stay to be temporary, which can limit deep connections.
I would like to avoid Dubai’s hottest summer. Opening the door in July feels like a giant hair dryer blasting hot air. On the other hand, Singapore is hot and humid all year round. In both locations, you can expect to spend a lot of time in air-conditioned buildings.
Both cities are expensive, but I think Singapore is more expensive, especially for cars and real estate.
Singapore is also a very small city. In Lisbon, you can drive to many beautiful places, including beaches and hiking spots, but in Singapore, you don’t have to drive very long before leaving Singapore and entering Malaysia. In the medium to long term, it may feel narrow. I’ve never lived in Singapore, but when I visit, I often end up on the same four or five streets.
Overall, Singapore and Dubai are great examples of international hubs and I really like both cities.
Want to share your reviews of cities you’ve lived in for work or business purposes? Email ccheong@businessinsider.com.
