Startup in Dubai in 2023
Dubai offers many interesting opportunities for both online and offline businesses. The advantages of opening a startup in Dubai are numerous. The UAE economy is growing rapidly, and local rulers are becoming more and more interested for 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. A number of laws have also been passed aimed at further encouraging investors to start a startup in Dubai in 2023.
Venture capital fund for new projects
To boost business in Dubai, Crown Prince Sheikh Hamdan launched a $100 million venture capital fund for startups. At the same time, the Ministry of Economy developed the Enterprising Nation project, which aims to turn 20 new businesses into "unicorns," meaning to make each of them worth $1 billion by 2031.
Sheikh Hamdan has developed another interesting idea - a digital crowdfunding platform for original projects. Its task is to support young innovators, regardless of nationality, to give them the opportunity to receive grants for the development of promising projects. Thus, the opening of a startup in Dubai in 2023 offers broad prospects.
Additionally, it is necessary to mention the UN program, the task of which is 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 not only in the Free Economic Zones (FEZs), but also on the mainland, and therefore in 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 there are 20 SEZs operating in Dubai, which provide companies with various benefits.
In order to attract foreign investors and prospective professionals to the country, the rules for granting visas have also been changed. 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 flexible. Thus, candidates no longer need to look for a sponsor who will pay for their stay in the UAE. They can do it on their own if they fulfill a number of conditions.
Startup in Dubai: online commerce
On the list of the most promising markets in Dubai is e-commerce. It is expanding very 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 a great 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, which is interested in the development of the online industry, it is easier for such businesses to open a company, get government support in the field of logistics and delivery.
How to open a startup in Dubai
To start a business in Dubai 2023, contact IT-OFFSHORE experts.