As a leading city in the United Arab Emirates (UAE), Dubai has grown to become one of the global business hubs over the last four decades. Out of 198 worldwide economies, the UAE has ranked 16th in the Ease of Doing Business and 17th setting up a company on World Bank’s 2020 Ease of Doing Business report.
With a predicted contribution of over 47% to the UAE’s annual GDP, as revealed by the Statistics Centre in Dubai, early-stage startups make up nearly 50% of all businesses registered in the Emirate, validating the Emirate’s appeal as a worldwide center for entrepreneurship, innovation, and knowledge transfer.
Dubai – A Place for Entrepreneurs
Dubai provides aspiring entrepreneurs with a comprehensive package, from world-class infrastructure and lifestyle to easy business incorporation models, access to workshops, mentors, events, and a flexible regional investment community. The Emirate acts as an entryway to the Middle East’s emerging markets and is considered a preferred business hub for the region.
We have seen incubators and accelerators routinely pop up across the nation, providing attractive benefits for startups and early-stage entrepreneurs, including administrative support for opening a company, co-working spaces at affordable rates, and networking opportunities with like-minded innovators.
What makes Dubai the Best City for Startups?
Here are a few listed down reasons –
1. Free Zones
Free zones are the best thing that happened to the UAE. Dubai currently hosts up to 30 different free zones dedicated to various business activities. Most of the entrepreneurs consider operating in a free zone because of the advantages that it offers. It includes –
- Full foreign ownership
- No repatriation of income and profits
- Tax-free environment
- No requirement of audit
- Ease of incorporation
Suppose you want to open your business in any of these free zones; lookup for that free zone dedicated to providing facilities for your business activity. If that is something you don’t want to do on your own, you can get in touch with Commitbiz business setup consultants in Dubai.
2. Secure Banking System
The city’s well-developed banking system provides foreigners to open businesses in Dubai and run them without worrying about security. Twelve banks featured on the 2017 list of Middle East’s 50 safest banks were from the UAE and are based explicitly in either Dubai or Abu Dhabi. Startups in Dubai enjoy the quality and stable banking services offered by both national and international banks. Banks that function here are backed either by reliable private groups, the government of UAE/Dubai, or leading global banking organizations.
3. Stable Exchange Rate
The UAE Dirham (AED) is among the most stable currencies in the world. Having been clinched to the US Dollar since 1973, the AED is favorable to all business setups in Dubai due to its steady exchange rate of 1 USD to 3.67 AED. The stability of AED guarantees that business startups in Dubai can transfer to their countries without worrying about exchange rate fluctuations.
4. Ease of Doing Business
As mentioned earlier, the UAE secured 16th spot in the Ease of Doing Business report of 2020. The country ranked –
- 17th in Starting a Business
- 1st in Getting Electricity
- 3rd in Dealing with Construction Permits
- 10th in Registering Property
These pointers make Dubai a hub for opening a business.
5. Transport, Logistics, and Infrastructure
New companies are set up in Dubai because they are the central trade hub in the Middle East. With a convoluted web of quality infrastructure, the city of startups functions as a link to a market of over 2 billion people in Africa, Asia, and the Middle East. The city is highly accessible. More than 120 shipping lines operate it, and 85 airlines fly to more than 130 destinations worldwide from Dubai. With zero trade barriers, exchange controls, or quotas, its diverse import necessities provide new business setups in Dubai with abundant product supply and re-exportation opportunities.
6. Friendly Immigration Laws
Dubai has an expatriate-friendly visa policy that makes it easy for business person and their employees to obtain residency. Residency typically lasts 2-3 years, and it is effortlessly renewable.
These are some of the reasons what make Dubai the best place for startups and entrepreneurs.
Programs Launched by Dubai to Support Startups
1. Global Blockchain Challenge
Over the last two years, Smart Dubai has been receiving the Global Blockchain Challenge, inviting Blockchain startups worldwide to pitch their latest blockchain innovations that can be possibly executed in Dubai. The last challenge shortlisted 17 finalists and announced the top three winners, at the Future Blockchain Summit. Following the successful inaugural edition in 2017, the 2018 challenge drew 200 applications from companies in 85 cities across 53 industries.
2. Dubai Smart City Accelerator
The Dubai Smart City Accelerator is the advanced accelerator supporting innovative companies in IoT and Connectivity, Urban Automation and Mobility, Open City Data, Sustainable Cities and Living, Artificial Intelligence, Blockchain, and Smart Government, and the Smart Retail industry.
Operated by Startupbootcamp, the worldwide network of industry-focused startup accelerators, the program targets developing innovative solutions to help make cities smarter and overcome major challenges due to waste, congestion, and energy to increase the quality of people’s lives. It will focus on projects that provide solutions to everyday challenges, built around transportation, intelligent buildings, intelligent logistics, intelligent lifestyles, and thoughtful planning & maintenance.
3. Dubai Future Accelerators
Dubai Future Accelerators (DFA) is a rigorous 9-week program pairing the world’s most exciting technology firms with foremost government organizations to create transformational solutions.
Smart Dubai Office has joined the DFA program working on challenges exploiting developing technologies such as Machine Learning, Blockchain, Artificial Intelligence, and the Internet of Things.
These things and much more make Dubai the best place to start a business.
Are you a budding entrepreneur? Do you find Dubai the preferred location for setting up your business? If yes, then what are you waiting for? Go ahead and kick-start your dream venture in Dubai. If you need more information, don?t hesitate to look out for a business consultant in the UAE to help you out with your queries.
