Dubai: An Introduction
In recent years, Dubai has transformed from a smaller trading town into a global trading hub known worldwide for providing an incredible wealth of business opportunities. Trade has long replaced oil as the main economic driver, with the city now operating two of the largest ports in the world. This explosive growth is no coincidence! Governing authorities have long fostered this evolution by offering lucrative tax incentives and relaxed immigration policies for foreign nationals.
Why Dubai Has Become a Global Business Hub
Dubai has worked diligently to offer incentives designed to attract foreign investors, including establishing free zones that allow entrepreneurs to found and operate their business enterprises in the region without needing local sponsorship. Dubai is also located in an area primed for easy international trade via ports with convenient travel to and from most countries in Africa, Asia, and Europe. Additionally, Dubai now permits foreign investors to purchase 99-year leases on real estate properties, dramatically exciting the local market.
1. Foreign Ownership on the Mainland
For many years, investors forming companies on the mainland were required to source a national sponsor that would own at least 51% interest in the company. This has traditionally been a downside to creating a business in that particular region. However, as of June 1st, these regulations have changed, and national sponsorship is no longer required. This has brought on a renewed interest from investors hoping to come to the region, and economic experts expect to see a massive boon to the economy as a result.
2. Increased Investments via Dubai’s Expo 2020
Dubai will host one of the largest international business expositions in the world in October 2021. Commemorating the 50th anniversary of the founding of the UAE, this event will bring some of the world’s leading talent, investors, technology, and businesses to the region to celebrate sustainable economic solutions and improving international collaboration. This expo is such a large-scale event that UAE’s tourism and hospitality sectors are scrambling to accommodate the influx of visitors.
3. New National Industrial Strategy
In 2021, the UAE announced a new industrial strategy known as Operation 300 billion. This strategy aims to raise the contributions of the manufacturing sector from AED 133 billion to 300 billion over ten years. The Operation 300 billion strategy will involve the creation of over 13,000 industrial companies during this time, along with a massive surge in research and development spending.
4. Easy Citizenship for Ex-pats
The UAE is host to some of the most relaxed immigration policies globally, but for many ex-pats, their visas dictate the length of their stay. However, the UAE has recently introduced citizenship for ex-pats that qualify based on talents, achievements, and financial contributions. Under this new citizenship law, businesses, doctors, inventors, famous artists, and scientists will be granted citizenship.
5. The Emergence of Sunrise Sectors
The pandemic has had a huge effect on the world economy and has significantly altered the world’s business landscape. This change has fostered the rise of internet-based e-commerce businesses. Many investors regard this industry as resistant to the economic effects of the pandemic in ways that brick and mortar-based businesses aren’t. Following this trend, many startups and smaller businesses are choosing to found their companies in Dubai’s e-Commerce market.
Services in Dubai, UAE?
The Best Time to Start a Business in Dubai is Now
The best time to start a business in Dubai was yesterday. But the next best time is today! Covid 19 has caused enormous disruption to the world economy in recent years, but the UAE remains a global hub for business potential and investment opportunities.
• Lower Registration Costs
The Dubai government has made enormous strides in crafting initiatives, policies, and stimulus packages that help waive many fees for new investors and businesses. This has helped create a cost-effective environment for new business opportunities despite the setbacks caused by the pandemic. Financial institutions have also introduced new payment terms to offer support for smaller and mid-sized enterprises.
• Supportive SME Laws that Foster the Growth of Business Ecosystems
Dubai has created favorable business regulations that are helping to develop a positive business environment for new and aspiring business enterprises. They have also taken significant measures to create a solid infrastructure for startups by developing more venture capital investments and business partnership opportunities.
• Access to a Large Talent Pool
The pandemic has caused many people to change or step away from their jobs, creating a vast pool of talent for your new business. You can take advantage of a wealth of intelligent, highly trained professionals waiting to help your business succeed. Additionally, companies can benefit from hiring remote workers worldwide for jobs like customer service and IT support. This is a cost-effective solution for many new business enterprises.
• Affordable Digital Marketing and Online Advertising
Digital marketing rates have declined across many platforms, creating an excellent opportunity to increase brand awareness via digital marketing campaigns. Combined with an increase in online sales due to the pandemic, there has never been a better time for company setup in the UAE!
• Ample Investment Opportunities
Dubai has long been a destination for business opportunities, and that has not changed! The UAE remains a fantastic option for new investors and companies hoping to take advantage of these opportunities. This, in combination with Dubai’s Expo 2020, there has never been a better time to invest in the region.
• Dubai’s Expo 2020
Dubai’s Expo 2020 is set to be an enormous international event that’s been years in the making. Thousands of foreign investors, talents, and companies will flock to the region to conduct business, making the area perfect for business owners hoping to find international business opportunities.
For successful company formation in Dubai, several factors need to be researched and considered. You will need to have a thorough understanding of your product, its demand, and the market forecast surrounding it. Additionally, having a working knowledge of local laws, regulations, and customs will help you find success in Dubai. Some investors choose to hire third-party Dubai business setup services, like MSZ Consultancy, to help them navigate the tricky terrain of business formation, visa applications, and important regional laws.
Services in Dubai, UAE?
Business Opportunities in Dubai
The UAE is home to many different business activities that span across a massive swath of territory. And like any metropolitan area, the business opportunities are vast. You can find ample business opportunities in sectors like:
The service industry is a fantastic place to start a business. Dubai is home to more food and beverage businesses per capita than anywhere else in the world. And with over 17% of the population eating out at least once a day, there is a huge market for new investors and businesses.
2. Events Companies
Dubai is a hub for many different business events and festivals. And with the upcoming Dubai Expo 2020, the possibilities for businesses in the event planning sector are virtually endless.
Dubai is home to over 3,200 different construction products in a sector estimated to be worth over 245 billion. In recent years, this figure has only grown and offers a market that’s brimming with business opportunities.
4. Health and Wellbeing
The wellness market in Dubai is worth over 3 billion and is one of the largest markets in the Middle East. For healthcare professionals, including doctors, nurses, and scientists, this sector provides immense possibilities.
Dubai is home to one of the most robust and streamlined infrastructures in the world. This market is broad, offering opportunities that range from biking services to full-on luxury limousine transport companies.
6. Real Estate
Dubai is famous for its real estate, and even in a market affected by the pandemic, it still boasts returns higher than many major cities like Hong Kong, London, and even Singapore.
7. Travel Agency
Dubai is famous for being a tourist destination and is one of Dubai’s largest economic sectors. This industry will also be significantly affected by the upcoming Dubai Expo 2020, where thousands of people from across the world will descend on the region to conduct business.
With nearly 86% of all Dubai comprised of ex-pats, there is a significant need for educational services, including classes offered in multiple languages.
As mentioned previously, the e-Commerce sector has always been on a steady rise, but the pandemic has thrown this industry into overdrive. With thousands of businesses shifted to an online-only business strategy, there’s never been a better time to start an e-Commerce business.
Despite the pandemic, brick-and-mortar establishments are still flourishing. There will always be a need for stores and shopping experiences.
Services in Dubai, UAE?
MSZ Consultancy Can Help You!
MSZ Consultancy has over twelve years of experience helping businesses operate efficiently, and we want to assist you! We possess a thorough understanding of local business regulations, laws, and practices and can help you navigate the terrain with ease. From business setup in Dubai to visa applications and PRO Services, we have the expertise to help your business succeed! Handling license applications? We can assist! Trademark registration? We can help with that too! Free zone company formations? We do it all!
We have helped over 32,000 happy customers make the right choices for their business and investments, and we want to help you! MSZ proudly serves businesses of all sizes and types, helping them find success no matter where they set up shop in the Emirates. Give us a call today at +971 52 544 1248, and let us help give your new business a competitive edge!