Dubai’s Growing Startup Culture
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Dubai’s Growing Startup Culture
Dubai’s Growing Startup Culture makes it an entrepreneur-friendly location. Dubai has a growing network of thought leaders, entrepreneurs, incubators and the private sector. The geographic proximity to key markets is making Dubai a notable destination for start-ups.
The government focus on non-oil economy is supporting the growth of the Startup infrastructure. Innovation remains the focal point of Dubai’s initiatives to maintain its stature as one of the world best smart cities.
Advantages of setting up your Startup in Dubai
- Government support towards entrepreneurship and Startup culture
- World class infrastructure facilities and Freezones
- Ease of business setup and quick company formation
- Geographic advantage as Dubai connects the East and the west.
- Gain easy access to the international markets
As per the Global Entrepreneurship Index, UAE is ranked 26th globally and third in the MENA region in 2018. Studies indicate that the majority of the Startups in UAE, Dubai are e-commerce, marketplaces, and infrastructure/software as a service.
Startup Support Infrastructure in Dubai
The Startup growth in Dubai is support by Government and semi-government institutions to a large extent. Also, there are many incubators and Freezones to provide required infrastructure support for the Startups.
To name a few Freezones that support the Startup culture is the Dubai Silicon Oasis, Fujairah Freezone, Dubai Media City Freezone, DMCC, etc.
The Freezones in UAE offers special licenses for freelancers, flexi-desk and shared workspaces for entrepreneurs with a business license to support their entrepreneur efforts and gain results.
Also, incubators like Turn8, ImpactHub, AstroLabs, etc., support in providing the right platform for entrepreneurs with interesting business ideas to create, work and test their product ideas.
6 reasons for Dubai being one of the world’s best place for Startups
1. Technology Support
UAE is a young country with attractive financing options, a large network of banks, and ultra-modern infrastructure. UAE has planned a massive tech transformation and continue its journey of building a smart and futuristic city.
To promote innovation and development, the UAE has invested in research institutions and technical centres.
The Dubai Science Park, Dubai Academic City, Masdar City in Abu Dhabi, etc., are few to name. UAE is aiming to provide complete technology support and build infrastructure that stimulates the Startup ecosystem and draw more entrepreneurs into Dubai.
2. Government Support
The Government of UAE is very supportive of Startups, entrepreneurs, and innovation. There is a wide range of incentives offered by the government to new business set up in Dubai.
The Freezone Authorities, Department of Economic Development (DED), and the Government of UAE are implementing Startup packages to stimulate the growth of Startups.
3. Access to the International Markets
UAE is the perfect location for any business. Due to the virtue of the geographic location UAE act as a link between the east and the west. UAE is well connected to the Airports and Seaports of the world.
The logistics support and operational infrastructure in the UAE make it stand out as a perfect location for Startups to try, test and execute their products.
Also, UAE is home to a diverse expat population and there no other country with a representative population of the world, unlike UAE. Hence, this is the perfect place to test your product ideas.
The global connectivity, business infrastructure, secure banking system, political stability, etc., are making UAE the perfect choice of the investors.
4. Living Standards
Dubai has already grown into a prominent business hub. Over the decades Dubai has become one of the best cities to live in with all top-class services and amenities for the public.
UAE is an extremely safe place to reside, the living standards in the UAE is much higher than many countries of the world. There are numerous cost-effective residence options available in UAE. The Dubai Government’s initiatives are constantly focused on making Dubai the happiest place on earth.
5. Tax Benefits
UAE has very few tax norms, it just being two years since VAT has been introduced in the Dubai market. There is no income tax on individuals.
However, there is a corporate tax for oil companies and foreign banks. Also, for specific goods that are harmful to human health or environment, there is an excise tax levied.
For businesses, the Freezones in UAE has a 100% tax-free environment, with only 5% VAT to be levied when doing business with the Mainland and rest of the GCC Countries.
Also, Freezones allows 100% profit and capital repatriation and a 0% customs duty if operating from the designated Freezone and not in the Mainland.
6. Investor Friendly Location
As per the Dubai Statistics Centre, 50% of all companies registered in Dubai is early-stage Startups.
Dubai offers cost-effective Startup packages, world-class infrastructure, lifestyle, ability to easily setup business models, access to well-qualified mentors, workshops, events, and supportive investment community.
There are numerous support services Dubai offers for the investors to promote entrepreneurship. Accelerators and Incubation facilities such as the Dubai Silicon Oasis, Dubai Science park, 5Dubai, etc., that contribute to the Startup growth. in the region.
To know more on the Startup business support services, reach out us:
Contact: Aurion Business Consultants