Finance World Magazine| Edition: January 2024

The UAE’s proactive measures
in streamlining business setup
processes have significantly contributed
to its attractiveness. The World
Bank Group’s acknowledgement of the
UAE’s favourable business environment,
highlighted in its “Ease of Doing Business
Rankings,” positioned the nation at the
top among MENA countries. With just
six procedures and eight days required
to open a company, the UAE surpasses
the regional average significantly,
fostering a conducive atmosphere for
entrepreneurial endeavours.
Dubai stands out as an inviting destination
for startups due to its tax
environment. Most companies in Dubai
enjoy exemptions from income taxes,
making it an appealing location for
budding businesses. Even with plans
to introduce a minimal value-added tax
(VAT), Dubai retains its attractiveness
for startups by offering exemptions in
crucial sectors such as healthcare and
staple food items.
The city’s numerous free zones serve
as hotspots for startups, providing a
regulatory and taxation environment
that fosters growth. These zones bypass
ownership regulations and grant tax
holidays, creating an environment conducive
to startup success. Dubai Media
City and other renowned free zones have
transformed into nurturing grounds for
startups, drawing in foreign entrepreneurs
seeking an optimal launchpad for
their ventures.
Entrepreneurs are drawn to Dubai’s
free zones due to their supportive infrastructure
and beneficial regulations.
These zones have become incubators,
attracting a wave of foreign talent eager
to leverage the advantageous environment
as a springboard for their entrepreneurial
endeavours.
The UAE’s commitment to fostering
small and medium enterprises (SMEs) is
evident in its legislation. The SME Law
exempts SMEs from customs tax, mandates
procurement allocation for SMEs,
and encourages government-linked firms
to allocate contracts to SMEs. Initiatives
like Expo 2020 Dubai’s allocation of a
significant portion of contracts to SMEs
highlight the commitment to SME growth.
Embracing an innovation-centric
approach, the UAE’s Vision 2021 and National
Strategy for Innovation underscore
the nation’s commitment to becoming a
knowledge-based economy. With clear
In 2023, Dubai
surged ahead
among cities in
funding, with
its tech startups
securing an
impressive
$579 million in
investments.”
directives focusing on sectors like renewable
energy, technology, and space, the
UAE propels itself as a breeding ground
for cutting-edge innovations.
The UAE backs its innovation agenda
with substantial financial commitments.
With multi-billion AED investments dedicated
to science, technology, alternative
energy, and innovation incubators, the
nation actively supports groundbreaking
ideas and research.
Additionally, high-profile events like
the annual Dubai Expo and various tech
summits serve as platforms for startups
to showcase their innovations, thereby
attracting attention and investment
from international venture capitalists,
corporate investors, and angel investors.
One notable trend in Dubai’s startup
scene is the increasing interest from
international corporate giants. Many
established companies are establishing
innovation labs, partnerships, and incubation
programs within Dubai, aiming to
collaborate with startups and leverage
their agility and fresh ideas.
Moreover, initiatives like the Sheikh
Mohammed bin Rashid Al Maktoum
Fund to Finance Innovation provide a
financial cushion for individuals and
companies to materialise their innovative
ideas, aligning with the UAE’s strategic
innovation sectors.
As Dubai continues to pave the way for
innovation and entrepreneurship, its status
as a global investment hotspot solidifies.
The convergence of visionary policies,
robust infrastructure, and a commitment
to fostering innovation propels Dubai
to the forefront of global entrepreneurship,
attracting foreign investment and
propelling economic growth.
Dubai’s expanding startup investments
owe much of its success to the abundant
support infrastructure available for entrepreneurs.
From co-working spaces to
incubators, accelerators, and numerous
networking opportunities, the city offers
a robust ecosystem that nurtures innovation
and growth.
Entrepreneurs in Dubai have access
to a variety of affordable co-working
spaces where they can work alongside
like-minded individuals. Astrolabs Dubai,
in partnership with Google, stands as a
prominent tech hub offering cost-effective
pathways to full free zone licence at
Dubai Multi Commodities Center. Other
notable spaces like Impact Hub Dubai,
The Bureau Dubai, GlassQube in Abu
Dhabi, and Sharjah Entrepreneurship
Centre provide supportive environments
for startups to thrive.
Dubai houses several incubators, such
as The Cribb and in5 Innovation Centre,
offering office space, business guidance,
and funding for emerging startups. These
incubators, including those associated
with various free trade zones like Dubai
Silicon Oasis and Masdar in Abu Dhabi,
play a pivotal role in nurturing entrepreneurial
ventures.
Numerous accelerators like innovation360
(i360), TURN8, Flat6Labs Abu Dhabi, and
The Catalyst facilitate the rapid growth
of existing startups through funding,
mentoring, and networking opportunities.
These programs aid startups at different
stages of their journey, fostering their
development and expansion.
In addition, Dubai offers several resources
and networking tools such as
“Startup Central,” “Dubai Startup Hub,”
and platforms like MAGNiTT, providing
valuable information, connectivity,
and visibility for startups in the local
ecosystem.
The city’s commitment to fostering
a conducive environment continues to
attract and empower a diverse range
of startups, solidifying its position as a
global player in the startup landscape.
January 2024 www.thefinanceworld.com 43