Why do beginners like to set up shop in Dubai? Business and Finance

Business is booming in Dubai, which explains why it was just announced that more than 3,000 new companies had joined the Dubai Chamber of Commerce in April alone. This brings the total number of office benches to 300,000, making it one of the largest business chambers in the world.

So what makes Dubai so attractive to businesses and why should beginners consider setting up their regional headquarters in data?

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1. Favorable tax laws

It is known that the UAE did not levy corporate tax on most businesses earlier this year, and therefore it has announced that it intends to impose a 9% tax on most businesses. The exception, however, is small businesses and those working in free zones.

The new law is intended for large corporations, which will have to pay a standard statutory tax rate of 9%. There is still a 0% tax rate on taxable profits up to AED 375,000, in an effort to support small businesses and beginners.

Daniel Tkidin, CEO, Middle East and North Africa at BDSwiss broker. said business registrar In the past, the new tax rate has remained highly competitive both regionally and globally, and this should not be an obstacle to the country’s efforts to develop the prosperous business environment it has already managed to create.

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2. Economic free zones

There are more than 30 free economic zones in Dubai that offer favorable tax and customs rates suitable for specific sectors

His Excellency Hamad Bubim said: “The concept of a free zone has been introduced by the Dubai government to create a foreign interest in setting up businesses in the city. It is essentially a special economic zone where business owners can enjoy many of the benefits of ownership and taxation. ” President and CEO of Dubai Chambers. business registrar In an interview earlier this year.

Free zones offer a wide range of benefits: assistance with obtaining visas, opening corporate bank accounts, advice and networking opportunities.

While companies on the mainland have to apply for permits from government bodies, each free zone has its own rules and no external permits are required.

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Dubai’s design district focuses on fashion, furniture and beauty care and is home to approximately 4,600 companies.

The Dubai Trade Center houses more than 11,000 companies and is suitable for companies working in the field of goods and services. The Gold and Diamond Complex is dedicated to companies that trade in minerals and precious stones, and includes about 350 companies in it.

Access to finance and new markets

Companies looking for financing in Dubai have a plethora of options available, from traditional banks and venture capital firms, to business incubators, accelerators, crowdfunding, angel investors and government programs.

The Dubai government recently announced that it has launched a fund of 370 million dirhams ($ 100.7 million) to accelerate capital growth for start-ups to strengthen the city’s position as a global hub for fintech, innovation and venture capital.

4. A place to expand

It is possible to expand your business not only within Dubai – by giving or licensing your product franchise, working with another company or obtaining a government contract – but in other emirates such as Abu Dhabi and beyond. MENA region.

Dubai is the regional hub for access to some of the most lucrative MENA markets, and being located there means it is easier to expand and expand to countries such as Egypt and Saudi Arabia.

Why should you enter these markets? Startups in Saudi Arabia raised $ 195 million in funding out of a total of $ 297 million raised in April 2022 in the MENA region, the highest amount in the region.

Meanwhile, Egypt’s new ventures raised $ 491 million last year through 147 transactions, reaching a record foreign investors.

Salman Sattar, co-founder of a start-up Bagallery company that has expanded to Pakistan, said the outreach to investors and access in Dubai is unmatched.

5. New visa rules

The United Arab Emirates has recently announced wide-ranging reforms to entry and residency programs, making it easier for start-up owners and entrepreneurs to obtain long-term visas, as it seeks to position itself as an “ideal destination to live, work and invest in,” to confirm. “

It is important that many classes do not require a host or sponsor for the first time.

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The UAE Long Term Golden Visa is for entrepreneurs looking for Dubai’s start-up ecosystem, which enables them to ensure a long-term future in the city.

Read by Muhammad Al Kilani, Founder and CEO of Fanera Gulf Times The visa will “enable startups and small and medium-sized enterprises to more easily hire professionals from abroad, which will expand the pool of talent.”

Second, by providing incentives for investors to move to the UAE, this new provision will boost the country’s investment sector, increasing the potential of beginners to raise funds successfully.

6. High quality of life

Dubai has a vibrant urban lifestyle with something to offer for all ages. According to Expatra’s website, “the social side of life is wonderful and diverse” with luxury hotels, private beach clubs and sports clubs as well as great clubs and restaurants.

For those with children, Xpatra says educational standards in Dubai are excellent and new schools and colleges are being built almost every year.

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Medical facilities are also at the highest level, crime is low and data is easily accessible, with its large international airport receiving flights from around the world.

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