Have you ever thought about setting up your business in Dubai! For many ex-pats cities in the UAE, they are the most welcoming in the GCC. The perks of all the privileges for any corporate owner there, make it non-negotiable to admit that Dubai is the heaven of entrepreneurs and capital owners.
Nowadays, people have a different perspective, when it comes to investing their money. Many foreigners are thinking about political stability, as the top priority. When it comes to investing their money in the Middle East. Dubai shows superiority in this point. According to the political stability index, the UAE has one of the highest political stability average rates compared with the global rates, (the latest value from 2020 is 0.63 points). While, the world average in 2020 based on 194 countries is -0.07 points.
Besides this crucial factor, in this article we will illustrate, why you should start your business in Dubai?
Inspirational eco-system in Dubai.
Dubai is prominence with, gathering ambitious entrepreneurs, being the biggest business hub in the Middle East, owing plenty of free trade zones, and being one of the most attractive cities around the world for stake holders.
Not only that, but also for fostering diversity, and supporting the sustainability vision. The luxurious lifestyle there, plus the common sense of innovation, encouraged a lot of business people, to set up their nontraditional innovative cooperates there.
It also ranked among top 10 diversify cities in the world, as it has 200 nationalities living in harmony, and participates to enrich the demographic culture there.
The governmental initiatives in Dubai for foreign investments:
Make it in the Emirates
One of the most prominent invitations open to all manufacturers, investors and entrepreneurs, is “Make it in the Emirates”, where the UAE, through this comprehensive national program, sought to support and strengthen the industrial sector in cooperation with the Ministry of Industry and Advanced Technology. A financial partnership was established with the Emirates Development Bank, which allowed investors, innovators and entrepreneurs to obtain financial, advisory and logistical support from the bank.
Various means of obtaining financing and other support services provided many forms, including: (financing technology and advanced equipment, financing the modernisation of machinery and equipment), especially for those interested in using fourth-generation applications, as well as industries green, business expansion and structured finance, capital investment, and support for feasibility studies and business incubators.
Operation 300bn, the UAE’s industrial strategy
The UAE pays special attention to the industrial sector and supports it in pursuit of industrial leadership and self-sufficiency. Hence the vision of the national strategy for industry and advanced technology. And she hopes that the industrial sector will be able to develop and expand, so that its total participation in the GDP will reach 300 billion by 2031, instead of 133 billion in the current year.
As a result of this strategy, the UAE has embraced many small and medium industries, and appropriate material and logistical support has been provided to it. bringing the number of companies classified as small or medium industries to 350 thousand companies, had been contributing the equivalent of 60% of the country’s gross domestic product, and providing 86% of job opportunities in the private sector.
The UAE has strived to enhance the opportunities for entrepreneurs within the country, as it amended the law on the percentage of ownership for foreign investors in the industrial and trade sector to reach the right to own 100%, which made the investment arena look more attractive to entrepreneurs from all over the world.
In addition to what it showed The government of the state has high transparency and rule of law, and a tremendous economic ability to keep pace with high competitive standards, as this also supported the political and economic stability of the UAE, which resulted in 21 integrated free industrial zones within the state.
Generous tax breaks and incentives
When it comes to profit taxes, the United Arab Emirates is a paradise for investors and entrepreneurs, as the UAE is characterised by the least in the world in imposing taxes on foreign investors and entrepreneurs with small projects, even after the introduction of the new federal tax law.
The corporate tax system in the UAE is still the most competitive in the world, as the new law stipulates that the tax shall be applied at a basic rate of 9%, and a rate of 0%, on taxable profits, which do not exceed 375,000 dirhams to support start-ups and small businesses. With effect from the fiscal year starting on June 1, 2023.
The law also stipulates that corporate tax will not be levied on personal income earned from employment, or any other personal income gained through real estate or other investment activities, or on any other income earned by individuals that does not arise from business or any other form of Licensed or permitted commercial activity.
Foreigners opportunities in living luxuriously in Dubai.
There are many reasons why Dubai is an attractive place for entrepreneurs to live and work. In a wide scales this is due to the tireless efforts of the government there to facilitate this.
According to a study conducted by expats, the UAE ranks 18th in the world in terms of quality of life. It also ranks ninth for safety and security – making it an attractive location for entrepreneurs with families. Spouses and children visas are also easy to obtain once the main sponsor has been accepted.
From a business perspective, the UAE ranks 16th in the world in terms of ease of doing business in general. In addition, there are no personal taxes, corporate taxes, or any requirement to file returns for the vast majority of commercial activities as mentioned earlier. This definitely reduces the operational burden of running a company here.
The UAE has a tradition of encouraging talented individuals to come to live and work. However, given these recent developments, it is increasingly clear that the government is now keen to attract independent entrepreneurs from various disciplines.
As a result, those who have the drive and tenacity to grow their business from zero here in dubai are poised to benefit greatly. Entrepreneurs who are able to benefit from these government-led initiatives, programs and resources will have many options available to them.
You could also read more on: Steps to Register your Business in Dubai as a Foreigner!