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Why Is Dubai The Best Place To Start A Business?

December 28, 2021

Are you being daunted by the prospect of starting a business overseas?

Well, if the foreign country in mind is UAE then it is anything but daunting. 

More than thousands of businesses launch in Dubai alone every year due to the welcoming nature and business supportive environment of the Emirates. 

Despite the pandemic, in 2020, 40,000+ new business licenses were issued in Dubai. It is all the more fascinating to know that most of these businesses are set up by international entrepreneurs. 

Dubai is an expat community making up around 85% of the country’s population. 

Why Start Your Business In Dubai?

Thousands of entrepreneurs from across the globe flock to Dubai to do their business. This is due to various benefits that Dubai provides for businesses that include: 

Less Tax:

The UAE government proudly boasts about imposing zero tax on both personal and corporate income. Moreover, by setting up a business in Dubai Free Zone you can benefit from 100% repatriation of capital and profits. This also allows you to have 100% import & export tax exemption along with no currency restrictions.

The only Emirate tax to be aware of is the Value Added Tax (VAT) that stands at a flat rate of 5% which was introduced in 2018.

How Does This Impact The Entrepreneurs?

Cash outflow in the form of tax acts as a significant expense in the early days of a startup, UAE acts as an anchor for support to startups with their system. 

This improves the profitability of the business and give more liquidity. In turn, potentially allowing more cash flow in the form of disposable income that can be reinvested in the company. 


UAE is home to many funding initiatives, the nation often designs activities that accelerate business growth. 

For instance, The Mohammed Bin Rashid Innovation Fund worth AED 2bn helps entrepreneurs to turn their dreams into reality by financing innovation projects, offering expert guidance and support to their businesses.

By law, the UAE government has taken many measures such as commitment to award at least 10% government contracts to small businesses, shorten payment cycles for SMEs to increase liquidity and promote growth. 

From startup incubators to venturing capital firms, many UAE free zones make an effort to help small business grow and find funding

How Does This Impact The Entrepreneurs?

This environment is set to help businesses grow, these measures also mean that you are never short of options when it comes to find funding, mentorship or advice.

The Dubai SMEs account 95% of the enterprise population and contribute nearly 40% to the Emirate’s GDP.


In the Arab world, the Emirates is home to the second largest economy that has a GDP of nearly AED 1.5 Trillion (USD 421 Billion) with Saudi Arabia ahead. 

Dubai has a diversified economy where non-oil & gas sectors contribute 70% of its GDP. UAE presents a constantly growing economy that provides many lucrative opportunities for aspiring entrepreneurs and companies looking to expand internationally. 

Numerous industries such as healthcare, hospitality, technology, trade & banking all contribute to the country’s economy. Owing to these achievements, the Index of Economic achievements praises UAE for its broad-based and dynamic growth.

They also appreciate the continuous efforts of the Emirate to strengthen the business climate, boost investment, and foster the emergence for a vibrant and diverse private sector.

How Does This Impact The Entrepreneurs?

Having a large and diverse economy provides a wide range of opportunities for entrepreneurs. Strong economy of a country attracts the trust of the investors and encourages investment. 

The cycle of economic stimulation continues as businesses are happier to invest in new offerings. A strong economy also leads to higher wages attracting talented individuals. 


Dubai’s strategic location makes it an ideal hub for trade with vast markets. Based on its location, the time zone overlaps with many global business cities. 

How Does This Impact The Entrepreneurs?

This makes UAE the ideal location for both in-house and international businesses

Ready To Start Your Business In Dubai?

If having gone through all the above information makes you content about having your own business in UAE, here are the steps you need to follow to commence your company:

  • Choose Activity
  • Decide between Mainland or Free zone
  • Register Company name
  • Apply for business license
  • Open bank account 
  • Get a Visa

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