Like ‘London 20 years in the past’: Why international entrepreneurs are betting massive on Dubai, all the pieces you could know 

The UAE’s enchantment extends past its zero revenue tax and low VAT charges. What units it aside, in keeping with Kouznetsov, is the entrepreneurial spirit and openness to partnerships, notably within the digital area.

In line with DMCC, Dubai “boasts a wealth of advantages for companies and firms seeking to succeed, thrive and connect with the remainder of the world.” Moreover, the UAE is taken into account a “low-risk” nation for companies.

A current report by Dubai Framework for Cultural Statistics revealed that Dubai is house to 40 per cent of start-ups that secured over $1 million in funding within the area with 306 are based mostly within the metropolis.

The report additional highlighted Dubai’s infrastructure and enterprise enabling atmosphere as elements which have contributed to its international positioning.

Organising your enterprise: The sensible information

The method of building a enterprise within the UAE is easy, with a number of user-friendly platforms:

• TAMM for Abu Dhabi operations
• Put money into Dubai platform
• DED Cafe Dubai
• BASHR for UAE-wide operations

“For digital entrepreneurs, I extremely advocate the Dubai in5 program – it’s been a game-changer for revolutionary tech ventures,” Kouznetsov suggested. “You’ll pay simply round AED 12,000 yearly for the primary three years, get reasonably priced workplace area in Dubai Web Metropolis, and obtain visa help.”

Kouznetsov broke down the true prices based mostly on his expertise, together with often-overlooked bills:

Mainland Dubai prices:

• Registration and licensing: AED 15,000-50,000
• Annual commerce license: AED 10,000-50,000
• Workplace hire: AED 15,000-150,000 yearly
• Visa processing: AED 3,000-5,000 per visa

Freezone prices:

• One-time registration: Round AED 9,000-10,000
• Annual license: AED 10,000-50,000
• Workplace area: Ranging from AED 15,000 yearly

Hidden prices to contemplate

“From my expertise, listed here are the prices that always catch entrepreneurs off guard,” Kouznetsov stated. These embrace:

Worker-related bills:

• Visa prices for group growth
• Necessary medical insurance coverage
• Finish-of-service advantages
• Annual flight allowances

Workplace-related prices:

• One-year advance fee for workplace hire
• Minimal area necessities based mostly on visa rely
• Utility deposits and setup charges
• Parking charges in enterprise districts

Kouznetsov recognized two main alternatives within the UAE market which can be at present underexploited:

“We’re at a second with AI that feels just like the web in 1994 – the chances are countless and most industries haven’t even begun to faucet into its potential,” He defined. Kouznetsov sees specific alternatives in:

• Healthcare tech
• HR and recruitment
• Actual property tech
• E-commerce options

DMCC cited a number of advantages to organising a enterprise in Dubai, these embrace: Commerce flexibility, location flexibility, no restriction on workplace area, possession and taxation. It additionally suggested to take note of sure concerns corresponding to regulatory oversight and Emiratisation quotas.

Content material creation economic system

“The social media panorama has utterly modified. It’s now not about follower counts – it’s all algorithm-driven now,” Kouznetsov stated. He sees important alternatives for entrepreneurs who perceive fashionable content material creation and distribution methods.

Based mostly on his expertise, Kouznetsov affords three key items of recommendation:

• “Don’t overthink it – simply begin. I see too many individuals getting caught within the planning part. With tech ventures, it’s higher to launch rapidly and iterate based mostly on suggestions.”
• “Deal with distribution first. Construct your on-line neighborhood earlier than your product. I’ve grown JobXDubai.com to over 300,000 followers throughout social media channels as a result of we prioritised neighborhood constructing from day one.”
• “Don’t attempt to reinvent the wheel. Search for present markets the place you may add important enhancements reasonably than making an attempt to create totally new classes.”

Company tax concerns

The UAE’s new company tax system stays globally aggressive:

• 0 per cent tax on revenue as much as AED 375,000
• 9 per cent tax on revenue above AED 375,000

“Coming from Europe, I can inform you it’s nonetheless some of the tax-efficient locations to run a enterprise,” Kouznetsov stated.

Whereas the alternatives are important, the largest hurdle stays upfront prices. “You want to be ready for annual funds – workplace hire usually requires one test for the total 12 months. It’s completely different from locations just like the UK the place you can begin a enterprise for £15 on-line.”

Regardless of the challenges, the UAE continues to evolve its enterprise atmosphere to draw international entrepreneurs. “I imagine Dubai might see an entrepreneurial increase in the event that they lowered setup prices and eased workplace necessities, particularly for solo entrepreneurs and AI ventures,” Kouznetsov defined.

“The potential is big, however the preliminary monetary barrier will be difficult for bootstrapped startups,” he added.

For entrepreneurs contemplating the UAE as their subsequent enterprise vacation spot, the mixture of tax advantages, strategic location, and business-friendly insurance policies makes it a gorgeous possibility, supplied they’re well-prepared for the preliminary funding required.

In October 2024, Dubai Chambers launched a Dubai Startup Information – a handbook to help entrepreneurs and startups in establishing their companies in Dubai.

The handbook covers intensive areas of enterprise together with authorized necessities, enterprise setup choices, and funding alternatives. It lists key entities supporting startups, together with info on Dubai’s accelerators, enterprise incubators, sandboxes, and free zones.

On the time of launch, the assertion stated, “The information is designed to assist each native and worldwide startups navigate Dubai’s enterprise panorama, empowering them to make knowledgeable choices and leverage town’s distinctive place as a world enterprise hub.

Moreover, it supplies sensible recommendation, entry to on-line sources, and suggestions for tailor-made help, enabling entrepreneurs to confidently begin or develop their companies in Dubai.”

The town has a number of initiatives and help entities to help the expansion and improvement of startups in Dubai. The UAE is tipped because the main incubator for startups with over 5,600 companies registered in Q2 2024, in keeping with Statista.

Dubai took the highest spot with the startup ecosystem valued at over $23 billion on the finish of 2023.

“I imagine Dubai might see an entrepreneurial increase in the event that they lowered setup prices and eased workplace necessities, particularly for solo entrepreneurs and AI ventures. The potential is big, however the preliminary monetary barrier will be difficult for bootstrapped startups,” Vadim concluded.