Benefits of Setting Up Business in Dubai

The United Arab Emirates (UAE) has become a worldwide economic hub that draws investors and entrepreneurs from all over the world in recent years, thanks to its growing cities like Abu Dhabi and Dubai. Establishing a firm in the United Arab Emirates and securing a business visa might present numerous benefits for international entrepreneurs seeking to broaden their business ventures. But, what are those benefits, let’s find out in this blog post. 

Dubai is a Gateway to Global Markets

Dubai’s geographical location makes it a prime location for businesses looking to expand their reach as it is situated at the crossroads of Europe, Asia, and Africa. And, Asia and Africa are the countries with the world’s fastest-growing economies. Dubai’s strategic location allows businesses to access a large consumer market along with minimal travel time and logistical challenges. So, businesses based in Dubai can easily capitalize on this proximity to tap into such a larger consumer base. 

Moreover, Dubai is known as a Global transportation hub due to its world-class infrastructure. It has two major international airports, Dubai International Airport and Al Maktoum International Airport. Coming to the seaport it has Jebel Ali Port. This network supports the efficient movement of goods and personnel saving time.

The central location combined with excellent transportation results in shorter shipping times and reduced costs for businesses.  

Business-Friendly Environment

Dubai has cultivated a business environment to attract and support foreign investors. The country prides itself on a simplified, efficient company registration process. While other countries lack in this aspect, Dubai offers an easy setup for businesses, requiring minimal bureaucracy and a short timeframe to establish their operations.

Moreover, Dubai offers various free zones (areas with specific economic regulations offering significant advantages). This allows businesses to fully own their business, eliminating the need for local partners. Along with this, businesses operating in these free zones also take advantage of tax exemption on corporate income tax, and import and export duties. In most countries, businesses are restricted from fully owning their operations and acquiring complete control over their operations. 

The political environment in Dubai is also stable and secure, this aspect provides investors with peace of mind. Furthermore, the government’s commitment to infrastructure development and security further strengthens the business environment, fostering a sense of trust and stability. If you’re a startup business from the UK considering expanding your operations globally, Dubai offers a compelling proposition. 

Leading the Pack in Entrepreneurial Friendliness

In the recently released 2023-2024 Global Entrepreneurship Monitor (GEM) report, a reputable organization known for assessing entrepreneurial ecosystems in various countries, the United Arab Emirates (UAE) ranked as the number one economy for launching a business.

Investing in the Entrepreneurial Ecosystem

UAE is pouring efforts and investments into developing an ecosystem where newly established startups could be nurtured. This is not just in talks but confirmed by Aileen Ionescu-Somers itself who is working as Executive Director of GEM.

The GEM index identifies the specific parameters that are important for a thriving entrepreneurial environment in developed economies. This targeted approach ensures that the resources are directed towards areas with the most significant impact on entrepreneurs.

Ambition to become Innovation Powerhouse

UAE’s “Entrepreneurial Nation” project is a cornerstone of its centennial plan 2071. It sets a clear goal which is to have 20 “unicorns” by 2031. These unicorns are startups valued at over $1 billion.  

UAE is all set to create a large number of businesses as they’re aiming to cultivate a breeding ground for high-growth, innovative companies that can become global powerhouses.

A Shift in Investment Landscape

Traditionally, businesses in the UAE relied heavily on informal funding from family and friends. Acknowledging this issue government actively started working to connect businesses with formal investment sources. Not only did this open the doors to the larger funding pools but also expedited the growth of startups.

Here are the list of proactive steps the government took to connect businesses with formal investment sources:

1. Venture Capital Firms

These kinds of firms invest in high-growth startups with potential or significant returns. UAE has been experiencing a steady rise in VC activity in recent years indicating a positive sign for businesses.

2. Angel Investors

These are wealthy individuals who invest in startups at an early stage. 

3. Stock Exchanges

The development of stock exchanges like the Dubai International Financial Centre (DIFC) allows startups to raise capital through Initial Public Offerings (IPOs) once they reach a certain level of maturity.

Wrapping Up: We’re here to help you set up your business 

So, these are some of the top reasons why Dubai is the best place to set up your business. If you’re too considering a business setup in Dubai, know that you’re not alone. We’re here to help. We are business setup consultants in Dubai. We offer a range of services to help you with business formation and ongoing support. We can assist you with business consulting, company liquidation, concierge services, PRO services, and business audits. 

We provide various packages, including options for free zone business licenses, mainland licenses, and offshore company setup.  Our comprehensive services cover everything from initial consultation to documentation and assistance with setup processes. With 10 years of experience, we bring you peace of mind and ensure a smooth process.