The UAE has been regarded as a live example of transformation. With a background of the Oil sector, the nation has been successfully established itself as a profitable business ground. The non-oil area has been performing as one of the most significant drivers to boost the nation’s GDP. In the course, the technology industry has played a substantial role in transforming the economy to the next level. Intending to change the country of UAE to a paperless economy, the Government has been taking multiple moves in the technology sector. One such step has been implemented in the corporate sector by introducing the Smart Supplier App to simplify business transactions.
This guide throws highlight on the recent move made by the Government and its relevant impact. If you are planning to start a technology business in the UAE or is holding an idea to expand in the region, then this guide is for you.
The Initiative of Building Smart Supplier App
The Emirati Government aims to transform the nation of the UAE into a paperless economy. In the first month of 2020, the smart Dubai team has developed “Smart Supplier”- an application where the business suppliers can trace out all the business transactions at any point in time. The flexibility includes:
- Viewing of documents
- Keeping an eye on the billing procedures
- Keep a track on the pending payments
- Submit the invoices to Government
- Delivery notifications of products and services
- Receive digital documents
- Interactive panel to view the relevant statistics over a specified duration
- View the listed public bids.
These flexibilities will allow the business owners to automate their business operations and relevant processes. Let’s have a look at the appropriate impact.
Impact of the Initiative Made
With the blend of IT and business process, the initiative made by the Government will have the following implications:
- Saves time
- Automated records
- Elimination of data redundancy
- Complete tracking of business records
- Generation of real-time reports
- Increase the competitive level
- Provision of better services
It can be easily understood that the technology business is thriving in the region of the UAE by infusing itself in every possible business domain. So, this identification turns out to be a golden chance for the business investors who deal in the technology domain and plans to start a business in the region. However, moving ahead, let’s have clarity on the technology industry in the UAE.
Technology Industry in the UAE
The UAE is one of the competitive markets when it comes to the technology and AI sector. In the year 2018, IT spending has been spiked by 4.8%, which counts to US$7.7 Billion. According to the relevant projections, the IT sector is expected to contribute $2.83 Billion by the year 2021. Some of the leading sub-sectors in the IT industry include:
- Cloud Computing
- Internet of Things (IoT)
- Artificial Intelligence
- Smart Cities Move
- Introduction to 5G
- Drones and Airspace
- Blockchain Technology
- UAE’s as the Centre of 4th Industrial Revolution
Multiple initiatives have been taken by the Emirati Government to establish the UAE as the ultimate global tech-ground. To get better clarity, go through the reasons why Dubai is the tech-destination.
How to Start a Technology Business in the UAE?
Now, when it comes to starting a tech business in the UAE, business investors and owners prefer to proceed ahead with the dedicated free zones. Now, to start a tech-business in Dubai, you need to take the following steps accordingly.
1.Decide the Business Structure
First, you need to be clear regarding the business structure that you will be proceeding ahead with. It is essential to understand that a business structure needs to be finalized based on the availability of the required shareholders and capital to be invested. The most common business structures in the UAE consists:
- Limited Liability Company (LLC)
- Limited Liability Partnership (LLP)
- Sole Proprietorship Firm
- Branch Office of a Free Zone Company
- Branch of a GCC Company
- Branch of a Foreign Company
- Civil Company
Make sure to understand each of the entities, understand the pros and cons, and then select one according to the business requirements.
2.Decide a Trade Name for Your Business
The trade name of any business is going to be the brand name in the future, and so a business entity needs to select a unique name. According to the UAE rules, the trade name needs to be different from the competitors. At the same time, it shouldn’t sound offensive.
3.Select a Strategic Location for Your Business
The UAE gives the flexibility to the business owners to select the strategic location for their business based on the required essentials. Numerous options like Mainland, Free Zone, and Offshore is available. One needs to understand the eligibility criteria and select a location as per the business requirements. When it comes to the technology business in the UAE, favorable grounds include:
- Dubai Studio City (DSC)
- Dubai Production City (DPC)
- International Media Production Zone (IMPZ)
- Dubai Outsource City (DOC)
- Sharjah Media City Free Zone
- Ajman Media Free Zone
- Fujairah Creative City
4.Be Handy with the Required Documents and Submit to the Relevant Authorities
The next move is to be ready with the documentation process when it comes to company e incorporation. The comprehensive set of documents to start a business in the UAE includes:
- Duly filled license application
- Attested LLC agreement
- Name reservation certificate
- Initial approval certificate
- Passport and visa copies of the shareholders
- Tenancy contract
- Copy of business plan
Once you hold the set of required essentials, you need to submit it to the required Government Authorities for approval. After the submission, the approval process might take a few days.
5.Pay the Relevant Fee
Once the respective body has made the approval, you need to proceed ahead with the payment of the business license fee.
6.Obtain the Business License
According to the stated rules of the UAE Government, every business entity needs to obtain a business license to carry out business activities. The region of UAE issues different business licenses to the investors and owners to proceed ahead with the business incorporation process. When it comes to the technology business, a business entity needs to hold a trade license that will be issued by the Government Authorities.
Benefits of Starting a Business in the UAE
1.Growing Technology Hub
Dubai has been on its way to grab international attention when it comes to the technology industry. Multiple innovations and experiments have been taken into consideration to drive the Tech and AI industry. Some of the recent moves made in the tech and AI is:
- First AI anchor was inaugurated in Abu Dhabi
- Robots were built to infuse in the retail segment to keep track of the details
- Waste management is targeted to reduce to a great extent using the AI
2.Multiple Business Locations
Another flexibility is that the region of the UAE provides to the business owners in a wide range of strategic locations to carry out the business operations at ease. Options like Mainland, Free Zone, and Offshore is available, which helps the investors to set up a business according to the possible number of shareholders and capital available for investment. Now, to boost the tech industry to the next extent, the Emirati Government has incorporated the Dubai Techno Park, Dubai Internet City, which are dedicated to the tech industry.
3.An International Gateway
The UAE has positioned itself in the minds of the investors as a gateway to international expansion. The region is surrounded by neighboring countries like Oman, Bahrain, Qatar, and Saudi Arabia that helps in the easy development of the business. By starting a tech-business in the UAE, you can give international wings to your business entity. This move would help a business entity to strengthen their brand at a global level.
4.Multiple Business Opportunities
Dubai has been one of the thriving platforms for the tech-professionals as they have got a vast area of business operations. Be it a start-up or an established business, Dubai has sufficient ground for any business.
5.Upcoming Expo 2020
One of the most important drivers that have been provoking the business investors to take a step and start a tech business in Dubai is the forthcoming Expo 2020. Focusing on the tenure of six months, the event is expected to grab the attention of around 25 million visitors. Considering the corporate move, the event is expected to be a game-changer that would fetch massive business opportunities infusing mergers and acquisitions and relevant collaborations.
How Can We Help?
With a vision to provide the most effective and hassle-free business incorporation proceedings, Commitbiz Consultants has been helping numerous business owners to take a step forward in setting up their business in the UAE. Our business experts are well-versed with the company incorporation process, and thus can help you by providing tailored solutions suiting the business requirements. In case you hold any doubt or want to make a move towards establishing a tech business in the UAE, do have a word with our advisors. Contact us today-we’d be glad to assist.