When you think of Dubai, the first things that will come to mind are the towering skyscrapers, glittering skylines and businesses on every corner.
The United Arab Emirates (UAE) has made a name for itself as one of the most successful business environments in the world, with its world-class infrastructure and ideal location. The emirate of Dubai itself has around 1,023 startups which accounts for 87% of the UAE’s startups, according to StartupBlink.
With entrepreneurs flocking to this Middle Eastern business hub, you may also be considering starting a business of your own there. If you have Dubai in mind, here are a few things you should know about startup opportunities there, including accelerators, incubators and funding opportunities.
Is Dubai Startup-Friendly?
Dubai is one of the most successful startup cities, for a variety of reasons. One of them is that Dubai is home to more than 200 nationalities, which means that you can access some of the most skilled talent that is available.
The emirate serves as a gateway between the East and the West, so you would easily be able to access markets across the Middle East, Africa, Europe and even Asia.
Not to forget the biggest drawcard, Dubai has a tax-free business environment which means that businesses can benefit from a zero-tax policy.
It’s no surprise that Dubai ranks on multiple global indexes as one of the top locations for business, innovation and infrastructure.
Successful Industries In Dubai
Dubai supports a large variety of industries, but there are a few that tend to stand out and have shown significant promise for startups.
Tourism and hospitality: The UAE is one of the most visited countries in the world, seeing more than 17.15 million international tourists in 2023 alone. For startups in this industry, opportunities are endless particularly for rental accommodation and travel arrangements.
Health tech: Dubai is heavily focused on innovating healthcare and continues to lead the way for startups in medical devices and digital apps for health.
Technology and e-c0mmerce: Dubai has a tech-savvy population and embraces the convenience of delivering goods right to your door.
Sustainability: Dubai is a leader in promoting clean energy and sustainability, which offers startup opportunities in green tech and sustainable products.
Accelerators And Incubators In Dubai
In Dubai, you will find plenty of accelerators and incubators who can offer resources, mentorship and the chance to network with those in similar industries.
Dubai Future Accelerators (DFA): This is a government-led initiative with the goal of linking startups to various government entities to address and solve startup challenges.
FinTech Hive: Based in the Dubai International Financial Centre (DIFC), FinTech Hive is a specialised accelerator to guide startups in the fintech industry.
IN5 Innovation Centres: These are workspaces in Dubai that provide guidance and support to startups in the tech, design or media sectors.
Astrolabs: Also a co-working space, Astrolabs offers a space for those in tech startups to connect with each other.
Flat6Labs Dubai: This organisation provides seed funding and training to help support startups who are in their early stages of development.
Funding Resources Available In Dubai
To secure funding for your startup, Dubai offers various avenues that you can choose from.
Government grants: The Mohammed Bin Rashid Innovation Fund is an initiative that provides financial support to startups who showcase high levels of innovation.
Angel investors: To secure an angel investor, you can approach the Dubai Angel Investors who will help to connect you with individuals who can invest in your early-stage startup.
Crowdfunding: If you wish to use crowdfunding to raise capital for your startup, platforms like Beehive and Eureeca can assist you.
Venture capital: The most prominent venture capital firms in Dubai are BECO Capital, Wamda Capital and Shorooq Partners who invest in early-stage startups.
How To Set Up A Business In Dubai
There are a few key steps that you will need to follow in order to be able to successfully start your business in Dubai.
Select A Business Jurisdiction
There are three main jurisdictions that you can choose from.
Mainland: This will provide you with access to the UAE market and you will be able to work with government entities.
Free zones: These allow tax exemptions and foreign entrepreneurs will have 100% ownership however there is limited trade available in the UAE market.
Offshore: This is ideal if you wish to focus your business on international markets.
Register Your Business Name
After you have chosen your business jurisdiction, you can select a unique business name and check that it complies with Dubai’s naming regulations.
Compile A Memorandum of Association (MOA)
This is a document that will outline the structure of your company, the ownership and guidelines on how it will operate.
Apply For A Business License
You will need to submit the required documentation and pay the relevant license fees in order to obtain a business license that will be specific to your business activities.
Apply For Visas And Open A Bank Account
The last steps are to apply for visas for yourself as well as your employees if you need, and open a business bank account to manage all work-related finances.
Should You Open A Business In Dubai?
Starting a business in Dubai will give you unparalleled opportunities for growth, especially in certain industries such as tech, finance or healthcare.
If you are able to successfully tap into the city’s funding resources, connect with other entrepreneurs and stand out with an innovative idea, you can position your startup for long-term longevity.
