While “green” may not be a term people often use to describe Dubai, the region has made considerable efforts to transform the city into a more environmentally conscious place. In fact, Dubai has heavily invested in clean technologies and sustainable infrastructural elements to ensure that the region remains on the cutting edge of green efforts across the world.
In most cases, green businesses are organized to change both the environment and commercial enterprises positively. However, operating a green business comes with a series of challenges that require owners to think outside the box to ensure their company reaches the desired objective.
If you plan to start a business in Dubai and are dedicated to making your enterprise operate in an environmentally friendly way, we can help! Below, we’ll dive into the critical factors that allow eco-friendly businesses to thrive in today’s UAE business market.
What Exactly Is a Green Business? And What Are the Benefits of Operating One?
A green business is a company that strives to prevent negative impacts on the environment due to its practices. Green companies are designed to prioritize sustainable tactics that ensure they operate socially responsibly.
And believe it or not, seeking to run a company in an environmentally conscious fashion has many benefits beyond protecting the community.
1. Straightforward Business Setup
The Department of Economic Development (DED) ensures that applying for a business license is simple, seamless, and straightforward. In many cases, this process can be completed in days or weeks.
2. Business-Friendly Tax Laws
Dubai has long drawn investors and entrepreneurs to the region to take advantage of business-positive tax regulations that allow company owners to retain more of their profit. These policies also enable ex-pats 100% ownership of their business and full repatriation of earnings to their home nation.
3. Supportive Government
Dubai’s government also provides a wide range of world-class facilities and regulations that make commercial enterprises in the region lucrative and hassle-free. As a result, the UAE ranks first in the Global Entrepreneurship Index of 2022
4. Strong Economy
In addition to creating regulations that allow business owners to make the most of their investments, Dubai also boasts a strong economy that generates billions in foreign direct investments.
5. Great Living
Dubai is renowned for its tourist attractions and destinations across the world. From fantastic events like the 2020 Expo to retail outlets, restaurants, and world-class hospitality, there’s something for everyone in the UAE!
Eco-Friendly Business Ideas
If you’re planning on forming a small business in Dubai dedicated to operating in an environmentally conscious fashion, you’ll likely need the assistance of third-party business setup consultants. Expert consultants like MSZ have the experience to minimize the legwork and red tape found in UAE business activities, ensuring you are free to maximize your potential.
However, if you’re forming an eco-friendly business on your own, we’ve put together some great business ideas to get you started!
1. Eco-Retail
Retail businesses are full of eco-friendly opportunities, allowing you to develop a sustainable operation. For example, many eco-friendly products are in high demand, such as cleaning products, utensils, packaging, and more. And with estimates that the UAE retail market will reach over $70 billion by 2025, opening an eco-friendly retail store can be incredibly lucrative in the coming years.
2. Eco-Tourism
Even though the pandemic disrupted trade and travel worldwide, Dubai still attracted nearly 7.5 million visitors in 2019 alone. These numbers have only increased, and since over 44% of visitors to the Dubai Expo stated that sustainability is an integral part of influencing their buying choices, it makes sense that this business sector is full of opportunity.
3. Eco Fashion
Fashion has always been at the forefront of Dubai’s business culture. And with retail numbers expected to grow over the years, starting an environmentally conscious fashion company can result in major profits for the right owner.
4. Green Publishing
After years of unsustainable practices, even publishing companies have made efforts to develop a more planet-friendly approach. There are many avenues for developing this market, from publications like magazines and newspapers to novels and non-fiction.
5. Solar Power
The future is solar! Solar energy and the development of solar panel technology is a fantastic way to enter a job market that strives to improve efficiency and reduce environmental impact. And this industry is only growing! For the right investors, owning a photovoltaic panel company is not only lucrative but has built-in job security for the future.
How to Form an Eco-Friendly Business in Dubai
When forming a small business in Dubai, there are several steps you’ll need to take for the best results. Following these steps will make the business formation process simple, easy, and affordable. Here’s what you’ll need to do to form your new eco-friendly business:
1. Identify Your Business Activity
Before starting your business, you’ll need to define what you’re planning to sell. This will require you to develop a well-defined business plan that analyzes your product or service, the competition, and the market surrounding it. Only after you’ve gained this information will you be ready to apply for an eco-friendly business license.
2. Decide on a Free Zone
Dubai is home to a wide range of Free Zone jurisdictions offering benefits for different enterprises. Each of these Free Zones comes with its own sets of regulations and benefits. As such, you’ll likely want to work with business consultants to determine which Free Zone works best for your business needs.
3. Choose a Company Name
The next step will be to choose a company name. You’ll submit a trade name request through the Department of Economic Development (DED), ensuring that it has not been previously used and does not violate rules regarding profanity or religious connotations.
4. Apply for Initial Approval
The initial approval process is organized to ensure that the UAE government has no objection to you forming a business in the region. Therefore, you’ll need to submit your application for initial approval before you can continue in your business setup process.
5. Prepare Documentation
Once you’ve received initial approval, you’ll need to gather the appropriate documents and submit them along with your trade license application.
6. Pay Fees and Receive Final Approval
After paying the prerequisite fees and waiting about a week for processing, you’ll receive your business license. This license gives you legal authority to conduct business in the UAE.
7. Find an Office Location
Once you’ve attained your business license, you’ll need to secure office space. The UAE has a wide range of office space options, from physical office spaces to virtual offices, that allow you to conduct business without being present.
8. Open a Corporate Bank Account
The final step before you can conduct business in the UAE will be to open a corporate bank account. This account allows your business to exchange funds with customers and vendors in multiple currencies.
Interested in Eco-Friendly Business Setup in Dubai? MSZ Consultancy Has You Covered!
MSZ Consultancy has years of experience delivering hard, quantifiable results for businesses operating in the UAE. From assisting single investors with eco-friendly business startups to providing larger corporate companies with expert knowledge that allows them to work more efficiently, we can do it all!
There’s never been a better time to jump into UAE business with a booming economy. And we’re here to help handle many of your day-to-day operations so that you can concentrate on what matters the most. Seeking help with PRO services? We can help! Do you need assistance with interfacing with government authorities? We have experience!
So, if you’ve considered forming an environmentally friendly business in Dubai, give MSZ Consultancy a call at +971 52 544 1248. Our team members are waiting to provide you with a free quote on how we can supercharge your business prospects! Choose quailed, informed business assistance. Choose MSZ Consultancy!
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