Opening A Start-Up In Dubai: Is It A Good Idea In 2022?
If you are someone that is contemplating about turning entrepreneurial, you should be interested in what we have to say. For any entrepreneur and start-up, the best location to start a new venture is one that has-
- Benefits to easy incorporation
- Availability of skilled professionals
- Tax Breaks and other incentives
- Ideal business and commercial address
- Pro-active governmental regime
Thankfully, the commercial capital of UAE, Dubai offers all the above and much more. This is why in recent years it has emerged as one of the most preferred destinations for start-up entrepreneurs looking at favourable economic destinations.
In this article, we speak to leading business lawyers in Dubai from BSA Ahmad Bin Hezeem & Associates LLP. We ask them about some credible reasons why start-up founders are thronging to Dubai’s shores in 2022!
1. The Presence of Free Zones and Taxation Benefits in Dubai-
The first thing that you should know about a start-up is that it is always working with limited resources but great expectations. At the core of any start-up is budgeting. This means that they cannot afford to spend majorly as far as incorporation, licenses or taxes are concerned.
In the region of Dubai this is taken care off thanks to the pro-business nature of the authorities. Right from the incorporation to the licensing, and other paperwork, everything can be taken care of with minimum fuss. You also get substantial (almost nil) tax breaks in some sectors.
2. A Stable Currency at Par with the US Dollar provides Stability-
Right from 1973, when the AED was pegged with the US Dollar, the currency has risen in valuation and strength. Even during the worst phases of global volatility like the 2007-08 financial crisis, or the recent pandemic, the AED has maintained its stability.
This is perfect for start-ups that are always worried about currency fluctuations, especially when they are selling in foreign lands. Right now, 1 USD is equivalent to 3.70 AED and this has been true for the last many years. This is a major plus for new start-ups in Dubai.
3. A Multicultural Social Environment that is Safe and Stable-
There is no denying the fact that the political climate of UAE is very stable. This has percolated sown top normal safety and security which the government pays top priority to. This is great news for start-ups that want the society in which they operate in to be safe and stable.
With expats and professionals from different parts of the world calling Dubai their home, there is a healthy mix of everything. You can get diverse food options, nightlife, retail facilities as well as access to a skilled and professional workforce that is among the best in the world.
4. Perfect for Expats who are looking at Exploring Residency Options-
There is a reason why more and more expats are exploring permanent residency in Dubai. Unlike other parts of the world, where this requires five to ten years of investment and a set of lengthy regulations, in Dubai, you can apply for the same after a period of two to three years.
This means that if your start-up takes off, you and your employees have the chance of benefitting from permanent residency in UAE. This brings the promise of better life and living conditions, higher economic opportunities and access to public resources in Dubai.
5. Presence of Great Logistics and Transportation Options-
As we have already pointed out, Dubai is the commercial capital of the UAE. You should also know that this is one of the best-connected regions in the world. This has enabled the growth and development of the world’s best supply-chain and logistics operations.
If you are a start-up that is looking at importing or exporting products, you do not need to worry about connectivity options. Almost all major airline operators have direct flights to and from Dubai every day. There are no trade barriers that stand to benefit your financials.
The Bottom Line
Dubai is growing at a fast pace. This is probably the right time to make up your mind and stand to benefit from all that the region has to offer. Make sure that you hire an experienced business lawyer or firm that can help you at every step of the way. If you have any more questions which you would like us to address on the subject, please let us know in the comments below. We would be more than happy to help you set up your start-up in Dubai.