Tax savings are one of the most attractive features of doing business in Dubai. Dubai’s tax-free living is a consistent magnet for drawing talented expats from all over the world to set up their own company in the UAE. Being able to work in Dubai and have an opportunity to build revenue without many of the tax reductions common in other areas is an appealing proposition, indeed. In fact, for many types of businesses, the income tax rate in Dubai is zero! How is Dubai able to do this? The government has chosen to earn most of its revenue through oil industries and utilities, thus enabling them to offer a no-tax policy to attract other businesses and companies to come and invest in Dubai’s economy. The UAE doesn’t impose any personal tax or capital tax on its citizens or foreign businesses, either. To that end, it really is possible to run a business on an essentially tax-free basis in Dubai! And that’s what makes business setup in Dubai such a lucrative enterprise for so many investors to come here and pursue.
One industry sector in particular which is seeing a lot of growth in the region is that of Fintech startups in Dubai. The demand for Fintech services has risen for both commercial clients and private customers alike. What is Fintech? It simply refers to the integration of technology into offerings by financial services companies, with the goal of improving ease of access, delivery, and quality of customer experience. While industries like transportation, storage, and communications all grew during the pandemic, so did the need for Fintech. Dubai has witnessed the establishment of many financial houses, companies, and Fintech startups in areas including money lending, trading platforms, currency exchange, Bitcoin investments, and several other types of financial services. Finance is a key industry which helps to uphold all the other major players in the UAE economy, and has also played a pivotal role in offering financial assistance and solutions for those industry segments which have witnessed a downturn as a result of pandemic-related impacts.
Fintech companies and new-gen financing companies are now even competing with established international banks for many services provided, and some of the newer Fintech firms have been able to obtain bona fide banking licenses. Fintech companies are also partnering with established banking solutions to help extend and expand the lines of financial products and services offered, for the ultimate benefit of customers and consumers. Fintech isn’t taken lightly by the UAE government, either. The Fintech space is thoroughly regulated in conjunction with Central Bank guidelines to ensure that no unethical behaviors are being followed or tolerated, for the protection of customers, investors, and businesses alike. Even so, Government Financial Regulations are intended to favor and support these emerging Fintech solutions to create more effective products and services to assist the public in spending, saving, investing, and performing other financial transactions with ease and efficiency.
Fintech business setup opportunities in Dubai
Fintech businesses continue to grow here daily, and one of the best opportunities to launch your own business is by setting up your business in one of the UAE Free zones. Some specific Free zones which are particularly well-suited for Fintech start-ups include Abu Dhabi Global Markets (ADGM), Dubai International Financial Centre (DIFC), Dubai Multi Commodities CENTRE (DMCC) and others. If you’re looking for the most favorable platforms for launching and quickly scaling your startup, the UAE has plenty of great options for you.
Sounds exciting, doesn’t it! How’d you like to start your own tax-free Fintech business in the UAE? Many economic experts say that Fintech is the future of finance, and Fintech is already transforming how businesses and individuals spend, save, borrow, invest, and more. But if you’re serious about launching a successful Fintech business or any kind of business in the UAE, it pays to find a local expert who can guide you through the whole business setup process.
And that’s where MSZ Consultancy comes in. We’re world-class business setup specialists located right here in Dubai, and we know all the ins and outs of what it takes to get a new business venture set up in the UAE. Whether you’re a seasoned business leader or an aspiring entrepreneur, we can help you create a plan for Fintech business success in the Emirates.
Connect with us today to book your FREE consultation! Just give us a call at +971525441248, or shoot us an email at email@example.com; we’d be glad to walk you through every step. Don’t wait, our experts are standing by to help!
FREQUENTLY ASKED QUESTIONS
1. Benefits of Fintech businesses?
• Customer services and financial management
• Reduced costs
• Greater convenience
• Speedy transactions
• Faster rate of approval
• Robo advisors
• Compliant with financial, government, and risk management guidelines & expectations
• Advanced security
2. Do Fintech startups pay well?
The exact salary will be based on the size and scale of the company, along with its legal structure. We’ve seen annual salaries start as low as $28,500, and extend as high as $177,000. The majority of Fintech startup salaries range between $67,000 (25th percentile) and $130,000 (75th percentile), with top earners (90th percentile) making $153,500 annually in both the UAE and the United States.
3. What is an advantage banks get from partnering with Fintech startups?
One key advantage that banks hold over Fintech startups is that they already know the ropes, and are already well-respected institutions that customers see as trustworthy and low-risk. Improving existing banks with Fintech services will provide greater efficiencies that these banks can then pass along to their members and clients, in the form of better customer experience and subsidized pricing for services rendered.
4. Why is Fintech better than traditional banking?
Fintech is innovative, customer-centric, and serves to help streamline complex financial processes, making more financial opportunities accessible to more people. And due to having a leaner business structure, Fintech companies can offer products and services which are up to 10 times less expensive than comparable offerings from traditional banks.
5. What are some good options for making tax-sheltered investments?
There are many, but some of the most common include stock investments and mutual funds, retirement accounts, insurance bonds, fixed deposits, education savings plans, etc.