Why You Should Start A Business in Dubai: Top 4 Reasons

The United Arab Emirates has grown from an oil to a non-oil-based economy. And the future looks bright for a growing entrepreneurial journey. So what has changed and why should you put your foot into this opportunity and start a business in Dubai?

Why Should You Start a Business in Dubai?

Historically, UAE has been the nexus of people from both North and South Middle East, Africa & South Asia (MEASA) Region. It holds over 200 nationalists and that proves the latest trending factor that 52% of its GDP growth comes from non-oil-based Small and Medium Enterprise level business transactions.

Many foreigners open their businesses in UAE with minimum investment, especially in Dubai due to the ease of doing business and the government support towards entrepreneurship. Another factor for its favorability includes its first ranking in the Global Entrepreneurship Monitoring 2022 report, outperforming the likes of the Netherlands and Finland.

This has opened the veil and allowed many other industries and sectors to develop parallelly. In fact, the below graph states the UAE distribution of real GDP by sector; of which oil-based growth comprises only 17.2%. The phenomenal transition is seen in sectors like real estate, manufacturing, and retail, which alone takes a huge margin of almost 30%.

Due to the mix of nationalists, different cultures, and mindsets, one of the most popular emirates of UAE i.e., Dubai has come to garner a new name for itself. It is popularly known as the “Silicon Valley of the Middle East”.

Growth has been the prime focus while maintaining a steady hand toward sustainable and innovative transition. The startup ecosystem alone has seen a tremendous boost in the recent past. The nation’s ambitions are primarily being driven by Dubai which is home to over 10,000 small and medium startups.

Such large numbers point towards fast-paced growth. And the reasons as to “why start a business in Dubai” have never been more convincing. Let’s have a deeper analysis on various parameters that enables Dubai to be a dream destination for entrepreneurs.

Top 4 Reasons Why Starting a Business in Dubai is Beneficial?

Future Resilient Infrastructure

The heart of a budding city is its infrastructural development, which aids and impacts several sectors and industries cumulatively.

Dubai is set to become the world’s first city that is powered by blockchain technology and is boosting a data-driven economy for developing digital infrastructure. Its venture of “E-Business Residency” which allows entrepreneurs to create virtual companies in Dubai has made its foothold strong in the metaverse space as well.

Power-packed with futuristic technology, Dubai has grown by leaps and bounds in terms of its welcoming facilities. It entertains some of the most beautifully crafted architectures, of which the Dubai Furniture Foundation bagged the Guiness world record for being the world’s first 3D-printed commercial building.

Hub of Startups

Leading innovators are placing Dubai amongst its top-tier list of cities to start, develop and scale businesses or startups. Dubai’s ambitious $8.7 trillion economic agenda for the next decade, known as D33, is to cement its position as a knowledge-based economy.

The Golden Visa, which allows entrepreneurs to stay up to 10 years (subject to renewal) is a great plus point for building this innovative environment and a startup ecosystem. Growth enablers can obtain visas for service workers & nominate 3 CEOs & their family members to obtain golden visas.

Free Zones, which allows 100% ownership of businesses and numerous startup incubators, has pushed Dubai’s entry to the pinnacle of “Startup Hub”. With UAE as the 16th most favorable location for ease of doing business, FDI investment has sky-rocketed. It gained an index score of 1.78 for FDI Confidence Index 2022, where the highest was 2.19.

Taxation Measures

With the current stream of economic turmoil, countries are fastening their belt towards a path where homegrown institutions, startups, companies, and labs are supported. A prime example of this is Dubai, which serves as the hub of commercial business activities.

Business setup in Dubai Freezone has been one of the main attraction points for budding entrepreneurs and startup founders. Here you can easily access more than 2 billion consumers in multiple markets located within a 4-hour flight.

The wide and varied choice of free zones comes with 100% foreign ownership, with no requirements for local sponsors or service agents. Business owners can also enjoy 100% repatriation of revenues and profits, and 100% transfer of funds.

Financial Measures

Dubai is considered the gateway paradise that lands in between the ever-growing west and ever-aspiring east. It is currently undergoing a fintech revolution, attracting heavy investments in the fields of AI and robotics.

The Dubai International Finance Centre (DIFC) is the leading financial hub of the MEASA region. Some other stats to prove its giant footsteps is its capacity to hold the highest number of Venture Capitalists and home to 1/3rd of investors in the MEASA region.

Setting up a business in Dubai is as easy as booking a flight ticket, given you have the proper knowledge of the business environment. More often than not, busy entrepreneurs don’t have the time and capacity to fill in and run the errand for their business setup.

Hence, comes the business setup consultants in Dubai, who are skilled, hold in-house expertise in the field and resolve your queries and issues at a lightning pace. A&A Associates can easily set up and make a business run within 5 working days.

It’s Time for Your Business to Flourish

Whether it’s 100 percent ownership of business by foreign nationals, extended visas of entrepreneurs with enterprises, or even free zones that offer a variety of benefits to start-ups, it’s more than a rewarding experience for those who choose to set up a business in Dubai.

Dubai issued instant licenses of about 15,196 in 2021, which is 420% more than that of 2020. Such staggering numbers also support the fact that more foreigners are opening their businesses in Dubai due to conducive environments.

With more than 40 multidisciplinary free zones in the UAE, the government is renovating the age-old traditions of doing business and easing up every process. The various measures such as Financial, Taxation, Startup Hub, and Infrastructure – all play equally significant roles in the growth of the UAE, especially Dubai.

Whether you’re new to the business world or have an idea for a startup, A&A Associates LLC is just a call away to boost your idea with its business setup services.