In the words of His Highness Mohammed Bin Rashid Al Maktoum, Ruler of the Emirate of Dubai, "The future belongs to those who can Imagine it, Design it and Execute it." This motto has always been the foundation for Dubai's massive economic boost for over four decades.
But will this boost stay intact after the pandemic? What has Dubai been doing to secure its status as a pioneer in promoting business opportunities and startups?
In a recent conference with the Dubai Chamber Interview series, His excellency Khalfan Juma Belhoul, Chief Executive Officer of the Dubai Future Foundation (DFF), says how their agency is setting up a startup community, future in the picture. This agency's mission is "To Collectively Imagine, Inspire and Design Dubai's Future, with a vision To Make Dubai a Leading City of the Future."
Dubai- The Start-up Hub:
As the leading city in the UAE, Dubai has grown to become a global business hub over the last four decades. Out of 198 global economies, the UAE ranked 16th in ease of doing business and 25th at starting a business on the World Bank's ease of doing business report.
So, what makes Dubai the best city for business startup?
Advantages of Setting up a Business in Dubai:
- Strategic Position
- Consistent Government Support
- Multiple Free Zones
- 100% Foreign Ownership of Business
1) Strategic Position:
Dubai shares its borders with Abu Dhabi in the south, Sharjah in the northeast and the Sultanate of Oman in the southeast. The city's unique geographical location enjoys a strategic position connected to all local Gulf States and East Africa and South Asia.
Connecting commodities from the East and West prove why Dubai is a top-ranked business hub. The city's regular summits, conferences and expos bring together business leaders from around the globe.
2) Consistent Government Support:
There is consistent spending by the government on infrastructure, digital transformation and innovation. They welcome change and are willing to spend resources on optimising operations for a better result.
Dubai Government launched an AED 1.5 billion economic stimulus package for the next three months to support companies and the business sector in Dubai. The package seeks to enhance liquidity and reduce the impact of the current global economic situation. This Economic Stimulus Package will include 15 initiatives focused on retail, external trade, tourism and the energy sector.
3) Multiple Free-Zones:
Essentially, free zones or free trade zones in Dubai are business zones where companies operating in them are exempt from all types of taxation such as Value Added Tax (VAT), Income Tax, Corporate Tax and Customs. Business owners in the free-zone areas in Dubai have 100% ownership of the business.
In the current exceptional circumstances, Dubai Free Zones are working together to highlight their strategic role and social responsibility to support Dubai's economy. Dubai Free Zones Council announced an economic stimulus package to complement the Dubai Government's efforts to overcome the current situation. This initiative complements an earlier package announced recently to reduce business costs and enhance the financial liquidity of companies operating in the free zones.
The Dubai Free Zones Council's package contributes to strengthening and supporting Dubai's businesses by reducing the current economic situation's impact. It includes five key elements: postponement of rent payments by a period of 6 months; facilitating for payments; refunding security deposits and guarantees; cancellation of fines for both companies and individuals; and permitting temporary contracts that allow the free movement of labour between companies operating in the free zones for the rest of the year.
Dubai Free Zones play a prominent role in promoting sustainable economic growth, attracting investments and supporting Dubai's vision to be the world's preferred investment destination and the ideal place to live, work and visit. Their contributions to Dubai's Gross Domestic Product reached 33%. They provide a base for 44,985 companies and provide a total of 389,336 jobs, entities that contributed to this economic stimulus package, in coordination with the Dubai Free Zones Council, include:
- Dubai Silicon Oasis Authority
- Dubai Airport Free Zone Authority
- Jebel Ali Free Zone
- Dubai World Trade Centre
- Dubai International Financial Centre
- Dubai Development Authority
Dubai Multi Commodities Centre.
The Dubai Multi Commodities Centre DMCC invited businesses worldwide to set up a branch office in Dubai with no upfront fee to explore the Dubai market Ecosystem without making any initial investments. Alongside that, Dubai's mission to revolutionise and drive research and innovation in three core sectors:
- Machine Learning
- Genome Sequencing
And setting up an innovation agency like The Dubai Future Foundation to reinvent the services provided in education, e-commerce and banking. On the other hand, services like Artificial Intelligence, robotics and 3D printing are being embraced and utilised in accelerating growth in all sectors.
4) 100% Foreign Ownership of Businesses:
Dubai foreign direct investment offers essential information and invaluable support to foreign companies who intend to invest in Dubai. Dubai FDI guides, advises and provides practical assistance with all aspects of business decisions and management, starting from determining the best legal structures to identifying the appropriate business activities. UAE allows 100% foreign ownership of businesses to bring a host of benefits to overseas investors in the Emirates. For one, it could remove the need for foreign investors to work with local sponsors.
To successfully Incorporate a Business in Dubai, the business setup consultants at Commitbiz help you decide the right business activity, Forming a Business Plan, Assisting in Finalizing the Corporate Structure, Dealing with the Department of Economic Development (DED) completion of Documentation and Paperwork.
Do you have what it takes to start a business in Dubai? Are you aware of all the rules and regulations required to be fulfilled to Incorporate a company in Dubai? We at Commitbiz, with our team of experts, are here to assist you in any way possible to make your journey smoother.
Contact us to get our Incorporation services, Bookkeeping and Accounting services, Secretarial services, Intellectual Property and much more.