In recent weeks, Dubai officials revealed that they received more than 3200 applications from start-ups from around the world, interested in being hosted at the city's upcoming futuristic smart city, District 2020. What makes young entrepreneurs so interested in operating from the UAE?
If you speak to developers of small businesses about their dream location, you can easily hear the UAE and Dubai popping into the conversation, which makes us wonder about what they look for in projects set up in the Middle East's business hub.
Besides it being a major tourist attraction known for modern attractions, lavish spots, a strong international cultural scene, and plentiful employment opportunities, the UAE is the 21st favorite option for entrepreneurs, out of 190 countries.
UAE-based start-ups showed major success during 2021, despite the ongoing impact of the COVID19 crisis, as they raised $1.2B across 155 transactions, leading numbers in the MENA region. So, what secret is there behind the UAE being the preferred choice of entrepreneurs and start-up developers?
10 Reasons the UAE Is the Best Host for Your Start-up
1. Networking
Due to its stance as a leading business hub in the region, the UAE provides starting businesses with the chance of making great business connections needed to help their projects grow and thrive.
2. Talent Pool
Another perk of being based in the UAE is the country's potential of possible candidates to help develop and manage a business in its first stages. More than 80% of the UAE's population is between the ages of 15 and 64, with millions of highly educated and professionally experienced expats who can bring so much to the table when it comes to business development.
3. Stability
UAE Crime Rate & Statistics 2003-2022. www.macrotrends.net. Retrieved 2022-04-12.
The UAE is one of the most stable countries in the MENA region, with an extremely low crime rate, which means that drafting long-term business plans in the UAE is not that challenging.
4. Legal Clarity
UAE authorities are well aware that their country has become an international oasis of business, which is why they have been exerting extra efforts into making local laws as clear as possible for resident from different backgrounds, utilizing multiple languages and the use of social media networks to update the population with every development in terms of legal procedures.
5. Funding Opportunities
Since the UAE is one of the most stable environments for business development, it is easy for entrepreneurs to earn investors' trust, increasing their chances at receiving funding to grow their business ventures.
6. International Business Events
Another outcome of the UAE's status as a business hub is the fact that organizers of business events from around the world would consider it for the location of conferences and workshops, during which entrepreneurs can deepen their understanding of the business scene and meet counterparts from other parts of the globe.
7. Affordable co-working spaces
The UAE has some of the world's most iconic business parks and skyscrapers, making it easy for start-up developers to find their ideal office spaces at affordable rates.
In recent weeks, administrators at District 2020, the space that was designated for Dubai's Expo 2020 event, revealed plans to offer free-of-charge office spaces for promising start-ups from around the world, in the same spot the six-month event took place.
8. Tax Rates
As of April 2022, the UAE has no income tax imposed on individuals working in the country, which means that starting a start-up there can be quite efficient in terms of cost and the ability to grow operations for several years.
However, the UAE has recently announced plans to impose a 9% corporate tax on businesses operating in the country and making more than $102,100 USD a year, starting from June 2023. Yet, the 9% tax is still among the lowest corporate tax rates in the GCC.
9. Tech Access
Not only does the UAE has the regional lead in business development, but also in terms of access to high-technology and smart ecosystems, which enables start-ups to optimize their experiences and qualify for bigger chances of success in a shorter span of time.
10. Global Audience
One final perk of setting up a small business in the UAE is closely linked to it being a global village, attracting residents and visitors from all around the world, which means that enterprise projects can reach a wider and a more diverse audience by simply being based in the country.
