Dubai has quickly transformed into a business hub, attracting entrepreneurs from all over the world. In fact, according to Dubai’s Department of Economic Development (DED), the number of startups has grown by an impressive 13% each year.
The city’s flourishing sectors – from services and finance to trade and property – are reaping notable returns. Plus, its status as one of the Middle East’s most multinational cities cannot be overlooked.
Thinking of setting up a business in Dubai? You’d be positioning yourself in one of the world’s leading business hubs. Impressively, Dubai secures the 15th spot in global commercial markets, paving the way for entrepreneurs to achieve their ambitions in this ‘City of Gold.’
While the world offers numerous places to launch a business, Dubai stands out with its attractive benefits for international investors. Whether you’re considering branching out with an existing enterprise or igniting a fresh idea, Dubai’s diverse ecosystem is primed to cater to every business dream.
Global Standing
When it comes to a business-friendly atmosphere, the UAE is among the top in the GCC region. A nod to its impressive status, the World Bank’s 2015 ‘Doing Business’ report placed the UAE at 26th, surpassing other GCC nations like Saudi Arabia at 49th.
It’s also noteworthy that the UAE outpaces several European countries, with the Netherlands at 27th and both France and Turkey trailing behind at 31st and 55th respectively. Clearly, the UAE is setting a benchmark for business excellence.
Dubai is also one of the top 10 destinations worldwide for entrepreneurs looking to launch an import or export business, according to a recent report by a Germany-based relocation company, Movinga.
The study analyzed each city’s business environment, logistics network, and market accessibility for restaurants, tech startups, or import/export businesses.
Dubai Expo 2020
Expo 2020 was a six-month event that took place in Dubai, United Arab Emirates, from October 2021 to March 2022. It was the first World Expo to be held in the Middle East and North Africa (MENA) region. The theme of Expo 2020 was “Connecting Minds, Creating the Future.”
The event attracted over 25 million visitors from over 200 countries. It was a major economic success for Dubai, generating over $6 billion in revenue. Expo 2020 also provided a platform for businesses to showcase their products and services to a global audience.
Small to medium-sized enterprises (SMEs) were particularly successful at Expo 2020. They were able to tap into the large market of visitors and generate significant sales. Many businesses also used the event to network with potential partners and investors.
Robust Health and Educational Framework
A fact often overlooked: every UAE resident is mandated to have health insurance. The country hosts globally renowned healthcare institutions, such as the Cleveland Clinic. Additionally, boasting a literacy rate of 92.5%, the UAE stands as an educational beacon. Esteemed international universities, including INSEAD, MIT, and NYU, have found their homes here.
It’s All About the Location
The real estate mantra, “Location, Location, Location”, is apt for businesses too. Nestled strategically between Europe, Asia, and Africa, the UAE enjoys a prime spot on the world map.
With approximately 1000 weekly flights connecting to global destinations, accessibility is unparalleled. On one side, China and India offer a wealth of trade opportunities and raw materials. Meanwhile, the European Union, another massive trading partner, lies on the opposite flank.
Top-Notch Infrastructure and Facilities
The UAE government has made a significant commitment to ensuring a seamless experience for foreign investors. Their dedication is evident in the impeccable infrastructure and facilities provided, from state-of-the-art business parks to efficient transportation and consistent utilities.
The UAE has a strong economy with a low tax rate, making it an attractive destination for businesses of all sizes. The government is also supportive of innovation and entrepreneurship, providing funding and resources to help businesses succeed. As a result, the UAE has become a major hub for international business and investment.
In addition to the above, the UAE government has also taken steps to make it easier for foreign investors to obtain visas and residency permits. This has made it more attractive for businesses to set up operations in the UAE. The government has also invested heavily in education and healthcare, providing a high quality of life for its citizens and residents.
Abundance of Talent
It’s widely recognized that individuals, both skilled and unskilled, from various parts of the world, particularly Pakistan, India, and Southeast Asia, are drawn to the UAE’s lucrative job opportunities.
This ensures business owners a reliable and diverse pool of talent. Moreover, the region’s attractive combination of low taxes and competitive wages fosters a win-win environment for both employers and employees.
Attractive Tax Benefits
Navigating the tax landscape in a foreign country can be a daunting task. However, the UAE simplifies this with its varied business structures and tax classifications. Most notably, the free zones stand out, offering businesses 100% tax exemptions.
So, if you’re keen on retaining your business profits tax-free, consider registering within these free zones.
Here are some of the benefits of registering a business in a free zone in the UAE:
- 30% rebate on international film and TV production expenses
- No import or export duties
- 100% foreign ownership
- 100% repatriation of profits
- Easy and fast registration process
- World-class infrastructure and facilities
- Strategic location and access to major markets
- Seamless connectivity to global trade networks
- Competitive operating costs
- Highly skilled and experienced workforce
- Pro-business government policies and regulations
If you’re looking to start or expand your business in a tax-friendly environment, the UAE is a great option. With its varied business structures and tax classifications, the UAE offers businesses a number of advantages, including 100% tax exemptions.
Complete Business Ownership Options
Traditionally, foreign direct investments (FDI) would limit foreign investors to holding a maximum of 49% of business shares, with the local partner owning 51%. However, certain structures in the UAE empower foreign entrepreneurs with the possibility of 100% business ownership.
A Thriving Economy
The UAE has the most progressive trade environment in the Gulf region. Over the past four decades, it has developed a thriving economy with an open market, a high per capita income, and a consistent annual trade surplus. Businesses from all over the world are aware of this potential and are relocating to the UAE to launch offshore ventures.
The UAE’s commercial landscape is diverse and dynamic, ranging from innovative startups to multi-million-dollar corporations.
The emirate’s financial stability and wealth act as a magnet, attracting significant foreign investment and further strengthening its strong economy.
Transparent Legal Procedures
The UAE government has streamlined its legal framework to attract foreign investors and boost its economy. Criminal laws remain the same, but there are separate regulations for foreign nationals.
Bureaucratic hurdles have been reduced to a minimum, ensuring quick and efficient legal processes. Licensing and registration are simple and often require minimal paperwork, making it easier for businesses to get started.
Starting a Business in Dubai
When considering starting a business in Dubai, it is essential to determine the best company structure for your needs.
Many experts recommend setting up in one of Dubai’s free zones, where foreign investors can enjoy the privilege of 100% ownership. However, a Dubai Limited Liability Company (Dubai LLC) restricts foreign stakeholders to a maximum of 49% ownership, with the remaining 51% being held by a UAE national.
In rare cases, the government may permit a foreign entity to own an LLC entirely.
If you are considering establishing a business in a Dubai free zone, you will need to provide the following documentation to the local government authorities:
- A comprehensive business plan, covering:
- An overview of your intended business operations
- A breakdown of your workforce, both in terms of numbers and roles
- Your investment amount
- Details of your suppliers
- Insights into your target customers’ expectations
- A lease agreement and proof of your share capital deposit.
If you are short of funds, you do not need to worry because you can also apply for a business loan in Dubai to kickstart your venture. Click here to read our detailed guide on getting a business loan in Dubai.
But, this city is hell in terms of living.