Tarun Nagar The UAE is consistently ranked high among international economies. Its economy has grown to be among the most varied and dynamic in the globe in recent years. The UAE is recognized as having the best entrepreneurial climate worldwide, according to the Global Entrepreneurship Index.
This country is a leader in encouraging entrepreneurship, even more than major international economies such as the United States, Canada and Japan. Over 94% of UAE’s businesses are small-medium-sized enterprises, which employ 86% of the private sector workforce. So in this blog, we will discuss the reasons that make UAE the best country for Entrepreneurs.
So let’s begin.
Some Key Facts about UAE for Starting Business
- With a score of 7.2 out of 10, the U.A.E. was named the best place in the world to launch a business in 2022.
- Venezuela came in last with 3.2, followed by Saudi Arabia and Taiwan.
- In the UAE, 155 firms received venture capital investments in 2021, representing an increase of over 12% from the previous year.
- Top of the regional ranking was the United Arab Emirates.
- indicating an increase of 72% over 2020 in terms of the average size of a single financial agreement. This demonstrates the nation’s popularity as a center for burgeoning initiatives and unicorn businesses.
- The research emphasizes the UAE’s leadership in the Middle East and Africa in terms of the volume and scale of acquisition agreements, claiming 11 out of 35 deals in the region, demonstrating a significant return on investment for startups in the nation.
- In 2021, the UAE was responsible for almost 26% of transactions and 46% of all venture capital received in the Middle East and Africa.
What makes the UAE a great destination for entrepreneurs?
Let’s take a look at why the UAE is consistently ranked high in international rankings as a business-friendly location and considered UAE the best country for Entrepreneurs.
1. Easier set-up options
Many free zones are available in the UAE and offer incentives to start-ups. The Business setup In UAE in a free zone at a fraction of the cost of partnering locally (51% for an offshore setup). Many start-ups are exempt from corporate income tax because they offer tax holidays for employees for periods of 15 to 50.
UAEhas had its fair share of incubators and accelerators. Start-ups can be supported by incubators and accelerators to avoid premature death. Both offer mentoring, expertise and office space. They are functionally similar, but there is a distinct difference.
Accelerators offer funding opportunities in return to equity. Accelerators are very flexible, since members can ‘graduate’ from an accelerator program after a set number of months. These programs provide support for administrative business setup and networking opportunities.
For example, in 5 Dubai, an incubator offers funding, mentorship and infrastructure. Another initiative is the UAEFuture Accelerator program, which links start-ups with government agencies.
Abu-Dhabi’s Hub 71, a 1 billion-dirham ($272million)tech incubator is located in the city. It was created in ADGM (a free zone) to accelerate the development and implementation of technology and AI in this area.
Program head Mahmoud Ali said that the government-funded program offers easy access to capital as well as ease of investment through partners like Softbank and Microsoft.
The top UAE entrepreneurs, start-ups and small businesses can benefit greatly from accelerator and incubator programs. There is no shortage of quality in the UAE.
2. Visas and Foreign Ownership Relaxation
Due to ownership limitations, it was difficult not for foreign investors to launch an on demand app development firm in the United Arab Emirates. Although there are several free zones that allow 100% ownership, this is not always the best option.
There are unique difficulties in each place. Companies in a free zone are limited to doing business only within their designated areas.
The UAE’s new law for foreign direct investment 2018 allows foreign investors to relax their foreign ownership requirements in order to open the market. The UAE has 122 eligible economic activities for foreign ownership.
Companies can meet these requirements by submitting applications to the UAEEconomic Department. This determines the percentage of foreign ownership. You may be able to get 100% foreign ownership.
Visa requirements can be adjusted to encourage foreign entrepreneurship. A five-year visa can be granted to be the top Emirati businessman and exceptional students.
3. Technology investments
In line with its goal to diversify the economy away from oil, the UAE launched many successful initiatives to help it transition to a knowledge-based economy. Vision 2021, UAEIntegrated Energy Strategy 2030 and 10x, as well as the National Innovation Strategy, set ambitious goals to encourage entrepreneurship and take innovation in UAE up to new heights.
UAE remains the most entrepreneurial hub in the Middle East (MENA) and North Africa (MENA), accounting for 26% and 66% of all deals in H1 2019. Because of its low cost environment and ease-of-setup, it is no surprise that the UAE attracts most funding for technology ventures. According to H1 2019, 29% are made in the UAE region. 66% of all funding comes from the region.
It also houses some of the most innovative technology startups in the country. Uber purchased Careem, a ride-hailing app, for $3.1 billion. Noon, an eCommerce startup raised $1 billion before it was even launched!
Since then, high-tech start-ups throughout the region have received a lot of investment from investors. Mubadala, a governmental investor in Abu Dhabi, announced the opening of two innovative technology assets in October 2019.
These funds will invest $250 Million in Middle East start-ups. Investments by the fund have played a crucial role in the development of regional start ups like Bayzat, which aids companies with automating their HR administration.
Property Finder, a website that sells real estate, and Fetchr (a logistics company that delivers to a customer’s location via a smartphone’s GPS) are two examples of successful fundraisers.
They each raised $120 million and $52 million respectively. The local IT industry is in a wonderful place right now. The region’s next unicorn is up to the investors.
4. Skilled workforce
Finding workers is challenging when a business is just getting started. It is not difficult. UAEis the ideal destination for professionals with outstanding qualities and job seekers from all over the world.
You have a wide range of career and labor possibilities. Various companies provide the most respected consultants in UAE for business setup, and will make sure that your company hire dedicated developers that are well versed in their work.
5. A Growing Economy
The UAE’s robust economy comes as no surprise. This allows them to continue supporting large investments in innovation. The 2020 projections are even more encouraging.
Recent predictions from institutions like the International Monetary Fund and the Institute of International Finance point to a robust growth in the economy rate for 2020. This projection of a 3% rise in GDP in the next year is an impressive improvement over the 1% rate in 2019.
Vision 2021 is an excellent example of how visions can be supported with quick and effective economic backing. Because of UAE’s diversification, SMEs now make up more than 30% of the country’s GDP.
This is almost the same percentage as in the oil and natural gas sector. This momentum is not due to fiscal stimulus. This can be attributed to several policies that encourage entrepreneurship, as well as Expo 2020, which is expected to increase the demand for entrepreneurship. It will also attract as many as 25,000,000 people.
6. Infrastructure
One of the world’s most cutting-edge infrastructures is found in the United Arab Emirates. If you don’t wish to buy permanent office space, you can rent furnished business centers in UAEor the other Emirates. These are the best options.
7. Quality of life
UAEis home to 240,000 Britons. This makes it a popular destination for families as well as individuals. UAEis a wonderful place to live and offers excellent career opportunities.
UAEis home to more than 200,000 expats each year. Only 15% of the population is Emirati. The rest are foreign nationals and immigrants.
Any business can easily grasp the pulse of the country, and start a company that serves their customers’ needs. Additionally, businesses can also take help from fantasy app development services if they are interested in fantasy gaming apps.
UAE Free Zones – Advantages
Below are the advantages of free zones availability that makes UAE the best country for entrepreneurs:
- UAE free zones allow business startups to be created without the involvement of a local sponsor. It is seeking foreign investors. These zones are part of the state territory, and they have custom duties, taxes, and other regulations.
- Many free zones exist in the UAE. These include Sharjah free area, Dubai free zone and RAK-free zone. Some zones are reserved while others offer licenses to businesses.
- The greatest advantage of the “free zone” is the potential income from the leasing office space. Administration is handled by the free zones, so licensing fees can vary.
These are the key benefits of free zones:
- You can own 100% of the shares of a company without any involvement from a local agent.
- Profits and capital can be sent home without restrictions.
- Import duty-free, exempt from income, personal, and corporate taxes
- Excellent infrastructure and communications.
- It is possible to obtain a resident visa.
A business startup can be opened in the UAE:
Infrastructure developed – There are many business centers, industrial plants, and offices. New buildings are being built all the time.
It is easy to register offshore and onshore companies. It is a good idea to work with professionals as this will make it easier to complete the documents.
Top Five Industries to Use to Start New Businesses in UAE
Below are the top five amazing sectors that you can use to start new businesses in the UAE which is considered to be the best country for entrepreneurs:
1. Import and export
Dubai’s import and export market is highly lucrative and ranks #1 on this list. Dubai’s international location and economic diversity makes it an ideal place to establish an international trading business.
This will allow you to grow your business and increase your profits. You can set up your business in a DMCC-free area and have access to modern logistics and transport infrastructure that will help you succeed.
2. Healthcare
COVID-19 presented many challenges, but it also created new opportunities for Dubai’s healthcare-tech industry. The UAE’s healthcare software industry will be worth AED 39.5 billion by 2025. The UAE Industrial Strategy 2030 includes six key sub-sectors, including drugs and medical supplies.
There are three things that healthcare investors need to be aware of when entering Dubai:
- Health-Tech Innovation – A large part of DHA’s UAE Health Strategy 2021 focuses on innovation with a focus upon cutting-edge technology, automatization, and other innovations.
- Health Tourism – The COVID-19 travel bans hampered growth in the UAE’s medical tourism industry. However, it has recovered and medical tourism revenues are projected to surpass AED 19.5 billion by 2023.
- Growing Local Demand – Dubai’s healthcare providers will expand in the coming six years as demand grows.
3. Real Estate
UAEis a popular destination for expats with 70% of its inhabitants being foreigners. Forward Keys reported that UAEwas the most visited city in 2015 with 4.88 million tourists.
This is why Dubai’s real estate market is so attractive. There are several choices in Dubai’s real estate market. There are numerous options in Dubai’s real estate industry.
4. Information Technology
UAEis an international hub for technology-based businesses. The USA continues to implement policies that encourage innovation in technology and attract the top successful entrepreneurs In UAE in order to make the country the most technologically advanced city in the world by 2022.
Over the years, many start-ups have found themselves drawn to Dubai’s free zones. AstroLabs, which was the first Google for Entrepreneurs Global Tech hub in the Middle East, found that DMCC provided the perfect setting for start-ups looking to diversify into new markets.
5. E-commerce
Dubai’s retail and ecommerce market grew to $3.9 billion in 2020. This represents a 53% YoY growth due to COVID-19’s digital technology conversion. Worldwide, e-commerce is growing quickly.
Why has the UAE seen such incredible growth? Smart government programs and initiatives have been a key factor in Dubai’s e-commerce growth. Improved logistics, security and trust in digital payment have all contributed to Dubai’s ecommerce growth.
E-commerce expands your Target Market more than brick and mortar shops. This makes the UAE the best country for entrepreneurs. You can set up an E-commerce business UAE with the assistance of On demand app development solutions and manage remotely from any other location. This enables you to benefit from Dubai’s cheap taxes.
Conclusion
Thus, we have mentioned the reasons that make the UAE the best country for entrepreneurs. It offers the assistance required for businesses to prosper.
It has access to world-class markets that are able to support growth as well as the inception of any company. Because of its low tax rates, it is a fantastic location for both investing and launching a business. However, with its high spending potential and position as a tourist spot, UAE is an ideal place to start your own business.
Therefore, if you have a startup in UAE and want to expand it with the adoption of mobile app development, then it would be best to take help from a mobile app development company who will provide outstanding business solutions.
