Dubai is no alien to superlatives. Land of Architectural, City of Gold, Tallest, Grandest, and Most Expensive, the list is never-ending. Add ‘startup hub’ to it. If starting a venture is your dream, then Dubai’s looking for you. The Emirate has been ranked at number 29 in the world in the Startup Cities Index, which ranks 85 of the world's most vibrant startup centres. Dubai has run ahead of some of the most established startup ecosystems leaving behind New York, London, and Tokyo too. The country has time and again proved to be an innovation hub for the ever-growing population, richly complimented with entrepreneurial skills and with strong support from the government. The youths are indeed encouraged to bring ideas and see classic startup stories like Careem, Fetchr, Talabat and many more.
There is a reason why Dubai has been a startup hub from last few years. The reasons are listed as under.
5 Reasons Why Dubai is the World’s Best Place for Startups
1.Government Support
The government of the UAE is pro-business. They are very supportive of startups, entrepreneurs, and innovation. There is a broad range of incentives granted by the administration for the growth and future expansion of the startups in the Dubai market. Not just this, the free zone authorities and the Department of Economic Development (DED) are together executing startup packages to spur the growth of startups. The initiatives by the authorities include-
- Introduction of Commercial Package which is designed to educate startup owners and guide them to operating excellence. This is done through field visits to talk to owners and brief them on DED’s standards and requirements for conducting business, the common violations that occur, and ways to avoid getting penalized for those violations.
- The website of the Dubai Chamber of Commerce and Industry has its startup hub, offering excellent guidance for any new business. They cover subjects like gaining market access and entrepreneur education, and they also run regular programs for startups.
- Meanwhile, Tejar Dubai (an entrepreneurs development program) has been created to find and nurture promising local entrepreneurs in the UAE aged in the range of 18–35. This program has been designed to cater for young Emiratis who have an excellent idea for a business they would like to pursue but don’t necessarily have the skills or experience to develop it.
2.Technological Support
The Emirates is a young country with major attractive financing options, an extensive network of banks, and ultra-modern infrastructure. The country has planned a massive tech transformation to continue its journey of building a small and future-oriented city. To promote innovation and development, the UAE has invested in research institutions and technical centres. There are also many free zones dedicated precisely toward technology like Dubai Science Park, Dubai Academic City etc. are few to name. The UAE is aiming to provide complete technology support and build infrastructure that stimulates the Startup ecosystem and draw more entrepreneurs into Dubai.
3.Robust Funding Landscape
With over 500 million in VC funds available to the startups in the region, Dubai has emerged as the de-facto base for all startups fundraising activities in the Middle-East. Because fewer startups are competing for this money, there is an excellent chance to enter follow-on funding to fuel an extension in the area. Investors such as MVP and Wamda Capital have recently announced significant funds targeted at the region's tech startups. Scale-ups usually have the best chance at raising capital in the area since the ecosystem is the initial stage and investors look for traction before committing funds.
4.Easy Setup Procedure
It is already known that Dubai has a smooth and hassle-free setup process with minimal documentation. If an individual is well-versed with the legalities of the Emirates, within no time can one start their business in Dubai. And since there is an initiative to bring more startups to the country, you can take benefit from a variety of grants and support available.
5.Tax Benefits
The United Arab Emirates has a few tax norms; it just being two years since Value Added Tax (VAT) has been introduced in the Dubai market. There is no income and corporate tax on individuals and companies, however with few exceptions. For oil companies and foreign banks there is a corporate tax. Also, for specific goods that are dangerous to environment and human health, there is an excise tax charged. For businesses, the Mainland and Freezones has a 100% tax-free environment, with only 5% VAT to be collected when doing business with the Mainland and rest of the GCC Countries. Apart from this, one can fully repatriate profits and income in free zones and a 0% customs duty if operating from the designated free zone and not in the Mainland.
If you are still not convinced, there is more to it. Other advantages include-
- Investor friendly location
- A higher standard of living
- Access to the international market
- Availability of many business incubators and accelerators, and
- Political and economic stability
There are a few countries that have such vision and passion for growing the business sector. If you too want to join the country in this vision and start your business here, contact us today. We at Commitbiz help entrepreneurs like you in setup process of your company.
