The term ‘information technology’ refers to information that can be derived with the help of technology. Modern technology has restructured the mindset of people by making them dependent on it for every next thing, and has reshaped the entire world into a small village where every person, every task be it professional or casual is linked with the cyberspace and this is known as Information Technology Enabled Services (ITES). ITES is an outsourcing of processes that involve and blends diverse areas such as HR, Medical, Manufacturing, Telecom etc. with modern technology.
If we reimagine the world without Internet or ITES, it seems to be a blank space. The IT sector has been constantly upgrading itself by embracing new technology footprint and any business without the involvement of IT can’t last long. IT and ITES have changed the business scenario by transforming the business crux digital turning every business tech-savvy. Every country has been widening their technology sector to cope up in this competitive market. The United Arab Emirates, one of the smartest economies of the world, is also spreading its wings towards the IT sector to build it as an international IT hub and captures different segments like digital marketing, software development cybersecurity, electronic management, etc.
Digital Transformation in Dubai
Dubai Government has been crafting numerous plans to make Dubai as one of the smartest cities of the world in all aspects by 2020. Digital services have been initiated, like DubaiNow App, MyID, and ePay, that links government and the general public. These transformations have increased the demand of IT sector and IT professionals to a vast extent.
Where to Start an IT Company in Dubai?
In order to set up an IT industry, both Government and foreign investors play a major role. Before proceeding to the incorporation step, one must decide the location. A foreign citizen must keep in mind that in order to set up an onshore company, one needs to have a local sponsor who would possess 51% of the company’s shares. On the other hand, a free zone company provides the flexibility of tax-free scenario, and complete capital and profit repatriation. Dubai has got a number of free zones dedicated to each sector that attracts foreign investors to a great extent. Now, one can start or establish an IT company either in Dubai Internet City, Dubai Techno Park Dubai Media City, or Dubai Silicon Oasis. Let’s have a glance at each one of them.
Dubai Internet City
Dubai Internet City is a cluster that covers an area of 1.5 million square feet, and has a wide reach to almost 1600 business partners across industries like the Internet of Things, Cyber Security, Artificial Intelligence, Big Data, Robotics, etc.
Dedicated to technology with an aim to maximize the growth of IT Sector, Dubai TechnoPark was established in 2003 and covers an area of 21 million square feet. The focused areas with an aim of blending them with technology involve life sciences, industrial development, information and communication technologies, and the socio-economic sector.
Dubai Media City
A gigantic tech park that’s home to diverse tech companies, Dubai Media City was launched in 2001. The center is dedicated to the media community to leverage the limits of creativity. This center presents a platform for graphic designing, web development companies that deal in providing IT services.
Dubai Silicon Oasis
Like many other free zones, Dubai Silicon Oasis is a tech-park, a free-zone dedicated to information technology. This hi-tech ecosystem has been initiated to establish the world’s largest advanced electronic innovation which occupies an area of 7.2 million square feet. The center provides and supports technology investment for existing companies and startups, an incubation center, in-house business services, capital venture funding etc. that also widens the scope for freelancers.
What Are the Documents Required to Start an IT Company in Dubai?
In order to incorporate or start an IT company in Dubai, the following documents need to be submitted to the Department of Economic Development (DED):
- Passport copies of the company owner and partners
- Proof of payment of initial approval fee
- No Objection Certificate from the sponsors
- Partnership agreement to be signed in front of a notary
- A single investor needs to pay 10,000 Dirhams, whereas partners who possess a professional license needs to pay 20,000 Dirhams as a security deposit. The company is mandated to have a registered office, for which the owner might add a tenancy contract
The Emirate provides the flexibility to register the IT companies as a professional firm with full ownership, as well as a sole proprietorship.
Major IT Business Services in Dubai
Some of the major IT Services in Dubai are:
- Technology Outsourcing
- Call Center Outsourcing
- Network Security
- Management of IT Services like Cloud Hosting, Backup Recovery, Infrastructure Monitoring, etc.
- Digital Transformation through the involvement of Digital Marketing
- Server Installation and Maintenance
We can see that along with the core IT industry, emirate has opened multiple ways for other business segments as well as freelancers that are inclined towards technology and are covered under ITES. Forming an IT Company involves risk and time-taking process. Our business experts in Dubai will help you throughout the entire process by simplifying it and provide you with all the necessary details regarding establishing an IT company in UAE. If you have any query regarding the company establishment process in UAE, do contact us; we’d be happy to assist!