Dubai is the commercial capital of the United Arab Emirates. This “city of gold” provides vast business opportunities and innovative commercial modules for enterprises from around the world. International exposure and an investor-friendly government are just two of the factors that motivate entrepreneurs to start a business in Dubai. Startups in Dubai also get perks on investments and tax advantages when compared to other countries.

Startups are one of the most significant investors in local economies, as in recent years many governments have invested heavily in providing incentives and stimulus for their growth. It is also the case of Dubai, where start-ups have begun to develop rapidly.

There are lots of benefits associated with the opening of a company in Dubai, the most significant of which is likely the booming economy of the Emirates.

Here are the 4 reasons for investors to open startups in Dubai:

1- The tax benefits offered by Dubai free zones

Companies operating in Dubai mainland have numerous tax benefits, but these benefits also exist in their free zones. We mention among these:

–          the lack of any taxes imposed on the corporate income of locally registered companies;

–          one of the lowest values added taxes in the world at a rate of 5%;

–          the free repatriation of profits is available in all of Dubai’s free zones;

–          access to a wide network of double taxation agreements concluded by the UAE.

2- The great number of Dubai free zones

The most significant advantage of starting a company in a free zone in Dubai is the large amount of free zones around the emirate. There are now more than 30 free zones in Dubai, but a few others are under development. It is also worth noting the fact that in any of them the requirements for establishing businesses are almost the same.

3- Dubai Free zones have office spaces, warehouses, and factories

Among the services provided by the free zones of Dubai are the office spaces, warehouses and factories operating within the same fields where businesses are located. This reduces to a minimum the time and money spent on such facilities.

4- The company registration process in Dubai free zone is easier

Registering a company in a free zone in Dubai is simpler and faster than setting up a business on the mainland. This is because a business incorporation process in a free zone in Dubai is completed in one step.

In  a Nutshell: 

  • Dubai is the most important business hub in the Middle East, making it a great destination for young entrepreneurs from all over the world;
  • Dubai has had one of the most spectacular economic developments in the world after the 2008 economic crisis;
  • The Emirate is one of the most modern cities in the world in which startups can blend perfectly;
  • In a world where startup companies need governmental support, Dubai is one of the places these can actually find this support;
  • Dubai is unique for having the largest number of free zones in the world, most of them being suited for modern activities;
  • The taxation regime imposed in Dubai favors all companies, but it favors startups most of all;
  • Dubai has one of the most developed infrastructures in the world in terms of road and telecommunications.