Derived from the Greek words “technne” and “logos”, the term technology reflects as a combination of multiple parameters that includes techniques, skills, methods, processes that are combined to deliver goods or services. The implementation and delivery process has turned out to be more flexible with the growth of the internet. The evolving digital transformation has paved out a better lifestyle for mankind holding a value of around $5 trillion global markets in 2019, by penetrating all possible business.
The United Arab Emirates have drastically transformed itself from an oil-based economy to a non-oil-based economy. Dubai, one of the thriving cities of the UAE, have an open and growing ground when it comes to the IT industry, holding immense opportunities for newbies as well as experienced professionals. This guide will help you to understand the IT industry at an in-depth level. Before we proceed ahead, let’s have a glance at the past.
IT Industry: Global Scenario
Innovation and agility have become one of the essential measures for organizations in today’s world. The tech industry has uplifted the standard of conducting business by infusing a digital transformation journey for every business entity to drive themselves in the competitive market. 2019 has been stated as a year wherein enterprises have begun utilizing emerging technologies like Blockchain. The illustration reflects the IT industry at a global level.
IT Industry: UAE Scenario
The United Arab Emirates is one of the most attractive markets for information technology in the MENA region. Smart city initiatives have been initiated by the government to simplify the business establishment process for the national as well as global investors. According to the International Data Corporation report, the move is predicted that the smart city initiative would fetch $2.7 billion by 2022. Dubai acts as centre-point, and easily accessible becomes the first choice of the business owners and investors who prefer to go-ahead with IT business.
The Past
Since the last 15 years, the UAE has outstood as an emerging business platform when it comes to the IT industry. Every possible business segment be it retail, hospital, healthcare, F&B, has been continuously focusing on improving their online presence to capture the global market. In the year 1999, the nation has taken a strategic move of inaugurating Dubai Internet City, that acts as a leading technology business hub, aiming to uplift the industry and establish Dubai as the famous tech-ground. With continuous effort, the year 2013 stood as a remarkable year as the UAE’s IT market has grown around AED 15.8 billion and has crossed USD 17.2 billion by 2016.
The Present
With continuous efforts, today, the UAE is one of the lucrative platforms regarding the IT industry. Multiple strategic moves have been initiated by the government to scale up and fetch in more business in the region to multiply the revenue generated. Artificial intelligence and Robotics, an advanced move backed by technology is in demand. Recently, AI robot has been built to help the retail industry to keep track of the records. To know more about it, click here. Another drastic utilization of AI and Robotics can be seen in the media industry where an artificial news-anchor has been built. To read more about it, click here.
Moving forward, it can be stated that the IT domain has been continuously spiking up its level to leverage the industry’s growth. The Dubai Internet City (DIC) has become a significant contributor in uplifting the nation’s GDP in the technology domain.5
Dubai Internet City
The Dubai Internet City (DIC) is one of the key contributors to the IT industry. Established in 2000 as a member of TECOM Investments, and the Dubai Internet City stands as a dynamic international community of IT companies building multiple strategies to target several neighbouring regions. It is the largest ICT cluster that provides a comprehensive ecosystem, infrastructure and a favourable environment to the business investors, entrepreneurs, Fortune 500 companies who are looking forward to excelling in the IT industry. The DIC stood as over one and a half million square feet of prime commercial office space, where more than 1400 companies are based with a workforce of over 10,000. Global tech giants like Microsoft, Oracle Corporation, HP, IBM, Dell, CISCO, Siemens etc. have selected the Free Zone as an investment ground for the multiple benefits that the region offers.
Core Activities Carried out in Dubai Internet City
Some of the core activities carried out in the Dubai Internet City are stated below:
- Software
- Internet and Multimedia
- Telecommunication and Network
- IT Services
The business activities related to the above-mentioned activities are highlighted below.
How to Start a Business in Dubai Internet City?
To start a business in DIC, the steps mentioned below are to be followed.
- Submit a business license application along with the proposed business plan and passport photocopies of all shareholders, managers, and directors to the Free Zone Authority.
- DIC Authority will review the application and grant provisional approval letter to the applicant with a checklist of required legal documents.
- The provisional approval letter must be accepted by the applicant, signed, stamped and sent back to DIC.
- Submit all legal documents within 15 working days from the acceptance of the Provisional Approval Letter [there are a different set of legal documents to be submitted depending on who the applicant is – a corporate body, branch of a foreign or UAE company, or an Individual).
- DIC will review the legal documents, send the applicant a Customer Confirmation Letter and check if the required office space is available.
- The applicant has to return a signed and duly stamped Customer Confirmation Letter to the DIC.
- After receiving the Customer Confirmation Letter, DIC will issue an invoice for initial payment (fee for license and registration and 34% rental of the total annual lease).
- DIC will issue Personnel Sponsorship Agreement and office space Lease Agreement after receiving the initial payment.
- Upon receiving the signed and stamped Lease and Personnel Sponsorship Agreement, DIC will issue a trade license allowing the company to start trading.
- DIC will issue the invoice for outstanding lease rental amount payable in two instalments after issuing the trade license (33% first instalment payable after four months from the initial payment date, and 33% second instalment payable after four months from the date of payment of the first instalment)
Dubai is an emerging platform for budding entrepreneurs, working, and business professionals to come ahead and build their business roots in Dubai. In 2018, the City of Gold had attracted Dh 38.5 billion of foreign direct investment which turns out to be a 41% increase year-on-year. More than 6,700 business licenses have been issued in 2019, which has made Dubai the best business ground.
The Future
Innovation has been the key where the government of the UAE has always been focusing on. According to the future predictions of EY, the upcoming event Expo 2020 is expected to add Dh.122.6 billion to the Emirates economy during the year 2013-2030. Apart from the World Expo, the nation has got multiple events in the pipeline that would greatly contribute to develop the technology sector along with the overall growth of the country. The core moves are highlighted below:
World Expo 2020
The UAE won the right to host Expo 2020 back in 2013, which has turned out to be a game-changer for the nation as well as the world. The event is expected to grab the attention of delegates from more than 200 countries, expecting a count of 25 million visitors who would fetch in more than Dh. 122.6 billion. This is a booming opportunity for the tourism and hospitality industry to leverage their growth opportunities to the best. Recently, the CISCO team has implemented 5G technology to complete the tech-framework for the event, which will help the global audience to get an uninterrupted view regarding the expo and the activities conducted.
UAE Vision 2021
Launched in the year 2010 by H.H. Sheikh Mohammed bin Rashid Al Maktoum, the Vision 2021, which has laid its focus on driving the core areas that covers science, technology and innovation. The core aim is to shift UAE as a diversified and knowledge-based economy that would have a drastic effect on the future by improving the education sector. It would successfully contribute to converting UAE as one of the growing global nations of the world. The key-priority areas of Vision 2021 are highlighted below.
launched back in 2017. The focused areas for the UAE Strategy hold innovative education, artificial intelligence, intelligent genomic medicine and artificial intelligence. The Fourth Industrial Revolution also includes:
- The future security of water and food supply with the implementation of bioengineering sciences and advanced renewable energy technologies
- Enhance economic security with the adaptation of digital strategies and blockchain technologies. To know more about blockchain technology, click here.
- Optimum utilization of satellite data to plan the future of Dubai
- Enhance the defence industries with the involvement of robotics and autonomous vehicle technologies
Dubai has set its benchmark as one of the most profitable business platforms at a global front. Business owners and investors prefer to select the ground of Dubai as the ultimate business platform because the leverages that the city provides.
Benefits of Starting an IT Business in Dubai
Here are some of the attracting benefits that the region of Dubai provides to the business investors and entrepreneurs:
1. Expo 2020
The upcoming event World Expo, which is going to get conducted for six months until April 2021, is looked forward as a business collaboration platform by the business owners and professionals. The event is also focused on strengthening the SMEs and startups, which will find a vast ground to expand themselves by getting in collaboration with global giants.
2. Free from Personal Tax
When it comes to UAE, business owners can take a sigh of relief as the government provides the flexibility to earn revenue without paying the income tax. This turns out to be a sign of relief and another motivating factor that positions Dubai as one of the top business grounds. However, there has been a recent implementation of VAT which is fixed at 5 per cent, which needs to be beard by every business entity involved in the supply chain process of goods.
3. Availability of Numerous Free Zones
The centre of Dubai provides the flexibility of numerous free zones. These free zones allow business professionals to conduct business activities in a tax-free way and at a faster pace. The Free Zone in Dubai is home to 1,50,000 companies and thus serves to be a profitable option.
4. Rapid Incorporation Process
The company setup process in UAE comparatively takes lesser time as compared to other GCC countries. The government has been building friendly rules and regulations to smoothen the business setup process to grab more international investors. The business setup process turns out to be more efficient if the incorporation proceedings get handled by the business experts.
5. Easy Availability of Business License
The business owners must come forward and avail the specific business licenses to carry out the respective operations. To know more about the business licenses available in Dubai, click here.
6. Freedom to Hire Global Talent
The business owners and entrepreneurs have got the flexibility to hire global talent when it comes to hiring the right candidate for the right job. This allows the owners to grab the best international talent and accelerate the business entity that would contribute to enhancing the nation’s economy.
7. Central Point of Global Trade and Commerce
The UAE is a central platform for business professionals when it comes to business trade. Surrounded by Saudi Arabia, Oman, Qatar, Bahrain, the region turns out to be a perfect destination when it comes to global trade as it eases out the expansion process for the business owners to diversify the business portfolio in all the specified regions. Be it a newbie or an experienced business professional, both the partied have got enough flexibilities to carry out the business process.
Investing today in the tech industry in UAE Will help you to reap out the benefits in the future as the ground has been continuously booming. Solving the legal rules and regulations might turn out to be a complex issue, due to which the business professionals prefer to go ahead with business experts who are professionals and can guide them at every point.
How Can Commitbiz Help?
Who are we?
Commitbiz Consultants is of one of the best business consultants in the UAE. Our professional experts are well-versed with the incorporation procedures and maintain a vision to accelerate your business.
What do we do?
As business experts, our core tasks are highlighted below:
- Provide business license
- Act as a catalyst between clients and the UAE government
How can we benefit you?
As one of the top ten business consultants in the UAE, we assist you in the following processes:
- Strategize to accelerate your business growth
- Streamline your business activities
- Comply with the legal rules and regulations
- Provide tailored business solutions
- Helps you
- Establish the business pillars post-incorporation process like accounting, taxation etc.
If you are planning to step ahead and set up your company in UAE, do contact us today-we’d be glad to assist.