Starting a business in a foreign country can be a daunting task. But when it comes to the United Arab Emirates, it is nothing short of a breeze. The UAE has one of the most business-friendly and hospitable environments for entrepreneurs. One of the many reasons why thousands of entrepreneurs set up businesses in Dubai is because of this. Despite the global lockdown in 2020, Dubai witnessed a surge of more than 44,000 businesses.

Most of the business setup in Dubai is built by international traders, thanks to 85% of Dubai’s population, which comprises expats. Thanks to this, international entrepreneurs can set up various businesses in the country, from restaurant chains and hotels to even real estate companies in UAE. If you are considering becoming a part of this community, I’ve listed why Dubai is the best place to set up your trade.

1. Diverse Economy

With a GDP of over AED 1.5 trillion, which is almost 421 billion USD, Dubai has the second largest economy in the Arab sphere and is only after Saudi Arabia. Dubai is also the epicentre of a diverse economy, where 70% of its GDP comes from industries other than oil and gas.

UAE’s ever-growing economy offers numerous attractive prospects, from banking, health, and hospitality to tech and trade, for aspiring entrepreneurs and organizations looking to expand abroad. The larger the economy, the more complementary it is for entrepreneurs looking for business setup in Dubai. 

A healthy economy fosters confidence and encourages businessmen to take more chances and invest in new products, keeping the economic stimulation cycle going.

2. Minimal Tax

The Emirates proudly claims zero tax on both personal and business income. Value Added Tax, or VAT, was introduced in 2018 in the UAE. It has a flat rate of 5% and is the only significant tax in the country.

For the majority of businesses abroad, taxes are a significant source of cash outflow. It is a major expense in the early days of a business setup when income is limited.

But when it comes to Dubai, this is not the case, as you have to pay zero tax on your personal and corporate income. This improves your organization’s profitability and guarantees more liquidity, which will help with more cash inflow and reward you with disposable income that you can reinvest in your trade.

3. Strategic Location

Dubai’s strategic location makes it the ideal trading hub for major Eastern and Western markets. Its two bustling airports shorten flight times between major countries. As its time zone overlaps with key global business locations like Asia, Africa, Europe, and the East Coast of America, it is the best place for traders to carry out business with international markets.

The Dubai International Airport and Dubai World Central are among the world’s busiest airports and pave the way for direct passenger services and cargo service routes within Asia, Africa, and Europe, and even to faraway countries like the USA and Australia.  If you plan to set up an import-export business, the above statement proves that Dubai is the best choice, as it is home to one of the world’s busiest ports, the Jebel Ali Port.

4. Support for Startups

There are numerous funding initiatives in Dubai, aimed especially at supporting budding businesses. The Mohammed Bin Rashid Fund, valued at AED 2 billion, provides tips for successful business setup, financing innovation projects for traders, and essential strategies for business setup in the emirate. Several free zones also have startup incubators and venture capital forums designed to support the development and financing of upcoming businesses.

The UAE government is mandated by law to award at least 10% of all contracts to small businesses, annually. In the meantime, Dubai has also announced specific objectives to shorten SMEs’ payment processes to boost liquidity and encourage development.

Thanks to all of these factors, Dubai aims to strengthen its status as a technological and economic innovation hub. It encourages entrepreneurs who want to set up and start a  business in Dubai.

Get Started with the Best Solution

No matter what business activity you choose or where you wish to set up your trade, experts from Best Solution will help you navigate through all the procedures, from documentation to setting up your business in Dubai, smoothly and hassle-free. We will carry out all the steps for you and get your trade running in the shortest time possible,  while you can sit back and focus on setting your goals. Get in touch with our business setup consultants in Dubai today and navigate your way to success!