If an entrepreneur wishes to set up an IT or digital-related startup in Dubai, this is the right time for it. The fast pace of digital transformation, a robust digital infrastructure and cost-effective opportunities in both mainland & free zones are some of the factors that make the process of business setup in Dubai conducive for digital entrepreneurs. To top it all the UAE has announced a National Policy for coders trying up with major tech giants, which will attract digital entrepreneurs and professionals to the country.
To grab this golden opportunity, digital entrepreneurs are advised to consult with business setup consultants in Dubai. Here we guide you through the major benefits you can have by setting up an IT/digital business in Dubai. Read ahead.
The National Programme for Digital Companies
The UAE launched the National Programme for digital companies in July 2021. The programme aims to train and attract 100,000 programmers and set up 1000 digital companies over the next five years. The government will also boost investments in IT startups from AED 1.5 billion to AED 4 billion. The policy focuses on five key pillars: supporting coders, entrepreneurs, startups, large companies and the academic sector.
The programme also envisions building a comprehensive platform that links coders with private and academic sectors. It will help entrepreneurs and investors in finding talented professionals for developing innovative projects. The programme will hold partnerships with tech giants, private and government entities including such as Google, Microsoft, IBM, LinkedIn, Amazon, Nvidia, Dubai World Trade Centre, Emirates NBD, Khalifa University, Huawei, HPE, Majid Al Futtaim etc. These partnerships will increase financing and networking opportunities for IT startups.
Golden Visa and Chance for Citizenship
Starting an IT business in Dubai or UAE is the best way to obtain a golden visa and eventual citizenship. The UAE government has announced to grant golden visas to 100,000 entrepreneurs, owners of enterprises, and start-ups specialised in coding as part of the National Program for Coders. The good news is that the government has announced the start of the golden visa application process.
Both residents and non-residents are eligible to apply for UAE golden visas by starting a business based on coding. All nationalities and age groups can apply for the UAE golden visa via The Office of Artificial Intelligence or the Federal Authority for Identity and Citizenship. Golden visa holders can be later considered for the coveted UAE citizenship, which is granted by the government. Talk to business setup consultants in Dubai to know about the process of obtaining a golden visa.
Tech-focussed Free Zones
Unlike other businesses, IT startups require highly advanced tech solutions to operate smoothly. Fortunately, the UAE has a handful of free zones that offer advanced digital infrastructure for the smooth functioning of IT startups. Dubai Internet City, Dubai Silicon Oasis (DSO), Dtec ( by DSO) and Scality ( by Dubai Airport Free Zone) are some of the free zones that cater to tech businesses.
The free zones offer the perfect landscape of business setup in Dubai for tech companies as it is easy to obtain a license compared to the mainland. The rules are less stringent in free zones which means the entrepreneurs need not chase the government officials for license approvals. The free zones provide 100% ownership and 100% repatriation of profits for foreign investors. Furthermore, investors can rent cost-effective Flexi desks and co-working spaces that are tailor-made for their business requirements.
Incubation Opportunities for Startups
Along with the reforms implemented by the government, the country’s private sector has been supporting the tech startups by setting up incubators, startup accelerators, and other tech hubs. The ImpactHub is one of the first incubators in Dubai supporting tech startups since 2015. The incubator scene in Dubai has been further bolstered by Cribb, In5, Flat6labs, and Astrolabes. The rise of incubators has led to glorious startup success stories such as the acquisition of Souq.com by Amazon and the acquisition of Careem by Uber. These two acquisitions are considered milestones in the digital ecosystem of business setup in Dubai.
Different Channels for Financing Digital Startups
Sourcing adequate investments are one of the biggest obstacles faced by every entrepreneur trying to build an innovative startup in Dubai. Finding robust financial backing for an innovative idea is challenging as the banks find such ideas either risky or consider them costly concepts. Financing through Venture Capital (VC) and angel investors has emerged at this stage to uplift the business aspirations of entrepreneurs. The first of most successful tech startups in Dubai found it hard to find funding as VCs and angel investors were sparse at the time. However, the trend reversed in recent times as such startups started to show signs of success.
How can Jitendra Business Consultants Help You?
With the UAE announcing its ambitious National Policy for coders and digital companies, the stage is set for the influx of tech entrepreneurs into the country. The national policy along with the factors mentioned here makes the process of business setup in Dubai ideal for tech investors. However, foreign entrepreneurs may lose their way while navigating the steps of company formation in Dubai.
This warrants the need for incorporating a company through business setup consultants in Dubai such as Jitendra Business Consultants (JBC). JBC’s highly qualified business setup consultants assist the entrepreneurs by imparting their expertise in the labour laws and immigration laws as well as the experience of handling the authorities. Obtaining the right license, processing the visas, completing the documentation on time is no longer a challenge as JBC is with the investors.