Startup in Dubai in 2023
Dubai offers many exciting opportunities for both online and offline businesses. The advantages of opening a startup in Dubai are numerous. The UAE economy is growing, and local rulers are increasingly interested in foreign investors. Therefore, the number of new business licenses issued in Dubai in the first four months of last year reached 25,000, 60% more than in 2021. Several laws have also been passed encouraging investors to start a startup in Dubai in 2023.
Venture capital fund for new projects
Crown Prince Sheikh Hamdan launched a $100 million venture capital fund for startups to boost business in Dubai. At the same time, the Ministry of Economy developed the Enterprising Nation project, which aims to turn 20 new companies into "unicorns," meaning to make each worth $1 billion by 2031.
Sheikh Hamdan has developed another thrilling idea - a digital crowdfunding platform for original projects. Its task is to support young innovators, regardless of nationality, and allow them to receive grants to develop promising projects. Thus, opening a startup in Dubai in 2023 offers broad prospects.
Additionally, it is necessary to mention the UN program, designed to stimulate e-commerce for 100 small and medium-sized companies from certain Arab countries, including the Persian Gulf. Of course, this program will affect Dubai.
Opening a business to foreigners
Under the new rules, a foreigner can open and solely own a business in the Free Economic Zones (FEZs), the mainland, and Dubai.
The corporate tax has also been changed. If a company makes more than 375,000 dirhams in profit, a charge of 9% will be levied. The exception is when a company registered in the FEZ has been exempted from tax for 50 years. In this case, they are exempt from tax if they do not conduct business on the mainland. Recall that 20 SEZs operate in Dubai providing companies with various benefits.
The government changed the rules for granting visas to attract foreign investors and prospective professionals to the country. The UAE has recently introduced a new five-year Green Residence visa to attract highly skilled workers, private entrepreneurs, freelancers, and prospective students. The conditions for obtaining the Golden Visa, which is issued to investors for a period of 10 years, were also changed.
The new rules made obtaining a visa more simple and more flexible. Thus, candidates no longer need to look for a sponsor who will pay for their stay in the UAE. Instead, they can do it independently if they fulfill several conditions.
Startup in Dubai: online commerce
E-commerce is on the list of the most promising markets in Dubai. It is expanding rapidly, with revenues reaching $14 billion in 2023 and a growth rate continuing at 10%. Such figures are due to the active implementation of digital technology, which makes it easier for consumers to shop online.
The vast majority of customers in the UAE make purchases at foreign online stores, so local entrepreneurs have an excellent opportunity to gain a foothold in the Dubai market by getting customers interested in their products. In addition, thanks to various initiatives from the government interested in developing the online industry, it is easier for such businesses to open a company and get official support in logistics and delivery.
How to open a startup in Dubai
Contact IT-OFFSHORE experts to start a business in Dubai in 2023.