6 Reasons why the UAE is an attractive option for entrepreneursAdvicePRO
A healthy economy, excellent infrastructure facility, attractive and reasonable finance options and a very supportive government all make UAE one of the best places in the world to start a business.
But the most tempting of all these is an excellent mix of potential clients right at your doorstep.
Let us have a look at the reasons behind the strong pool of potential clients in UAE that attract entrepreneurs to this region.
- Rich and ready to invest client base: Whatever the market you want to invest in; whether it is real estate, retail, hospitality, engineering or oil and gas; there is a ready-made client base in UAE. This means that startups in UAE can invest in any business by knowing well that there is a huge client base in every sector.
Most of this client base work in multi-national companies with global reach. This provides the entrepreneurs the opportunity to expand their business quickly and even branch out internationally.
- Entrepreneurial culture: A good percentage of companies started in UAE belong to startup and SME category. This throws light on the entrepreneurial nature of the UAE economy and the vast pool of ready-made client base available in this region.
The World Economic Forum has pointed out a few startups to shape the fourth Industrial revolution. Out of the 100 startups pinpointed out, 27 are from the UAE.
- The diversity of market: The cluster of ready-made client base exists throughout the UAE. As per the Ministry of Economy for UAE, Abu Dhabi has a good client base for industries in aerospace, defence, photochemical and cleantech industry, and information technology.
For industries in tourism, re-export, and financial sector, Dubai has a rich client base. The Dubai freezone attract clients in the manufacturing and service industries.
Ras Al-Khaimah Economic Zone or RAK free zone has manufacturing facilities in sectors like metals, minerals, transport and logistics, plastic and rubber, electrical equipment and chemicals and food.
Similarly, Fujairah has a virtual free zone that helps small companies and individuals to open a new business from home or office in less than an hour. This facility is provided to knowledge-based industries like media, marketing, advertising and consulting. The Fujairah Creative City also provides all assistance in setting up a business.
Thus, offering diverse market in various industries provides a lot of benefits to startups and entrepreneurs who wish to locate themselves in the UAE.
- High net worth individuals: Studies have shown that there are approximately 410,000 HNWI’s living in the Middle East with a combined wealth of 2.1 tr. As per the Middle East Wealth Report of 2017 published by New World Wealth, out of all the countries in the Middle East, UAE is the largest wealth management center
This makes UAE the right choice for those companies who want to target high net worth individuals.
- Multiple benefits: Setting up a business in UAE also provides a multitude of other benefits.
- A large number of new business owners, especially in industries like digital technology, are being attracted to UAE. Thus, there is an opportunity to meet like-minded entrepreneurs.
- UAE is a multi-national country. The different nationalities and business types in the country provides an opportunity to target clients in various sectors.
- The country has a large number of high net worth individuals (HNWIs). This provides an opportunity to invest in high-end startups.
- The government provides extensive support for starting SME’s and startups. There are around 45 free zones in the country including Ajman free zone and UAQ free zone that provides 100% ownership to foreign investors.
- Short-term advantage: Entrepreneurs who plan to invest in startups in UAE can also expect to gain some short-term benefits. As per Columbia Business School Professor Rita Gunther McGrath businesses in today’s globalized world should seize an opportunity, exploit them and then move ahead once they have exhausted the opportunity.
If your startup is agile, you can take advantage of such opportunities when compared to competitors who are less adaptable and focused on long-term strategy.
Set up a company in UAE, and reach those potential clients
Business set up in Dubai and rest of the Emirates is remarkably easy. Here are a few options you can explore.
Decide on the Free zone
First, you need to understand the basics of setting up a startup in the Emirates and then decide on the right free zone for you.
A free zone or a free economic zone is a particular geographical area of a country in which the rules and regulations of business, taxes, and employment as applicable in the rest of the country do not apply.
Thus, for example in DMCC free zone (Dubai Multi Commodities Centre) which is a free zone commodities marketplace the businesses have various advantages like no corporate and personal tax for 50 years, and complete foreign ownership. In addition to this, company formation in Dubai Multi Commodities center is very simple, and the Government also provide all assistance for company setup. DMCC is voted as the Global Free Trade Zone of the Year by the Financial Times, and it attracts businesses like steel and metal base, precious commodities, energy and soft agricultural commodities
What should you do to set up a startup?
Though setting up a business in any of the free zones is relatively easy there are certain formalities involved. First, you need to decide on the type of legal entity and create a trade name. Once this is done, you should apply for a business license. Once you get pre-approvals, you should register your business and then obtain a formal license.
There are certain other administrative formalities also that you need to follow to start a business in the UAE. This includes preparing legal documents, opening a bank account in Dubai and getting the visa processed. Seeking advice from business consultants in Dubai will ensure that the entire process goes smoothly and your company can start its business in UAE without any glitches
Those entrepreneurs who are planning to start a business in UAE need not have to worry about the clients as the country has a rich and extensive client base. The only thing to keep in mind is that the company set up should be done properly to take advantage of opportunities from the start.
While registering a company; whether in the mainland or as a freezone company in Dubai it is highly essential that you take expert guidance in setting up the business. This helps in equipping you with the right tools that are needed during company formation.
Setting up a business in UAE and obtaining Dubai residence visa has never been so easy. Advicepro is here to help you in all matters related to setting up a business. To know more about our services, please call +971 4 244 1518 or mail to email@example.com.