How Dubai Is Enabling Startup Culture And Attracting Global Entrepreneurs
Dubai is considered to be one of the largest technology and innovation hubs around the world. Supported by a business-friendly environment and regulations that accelerate innovation, the Emirate has become the top choice for entrepreneurs and creators from all over the world. In addition, global events that are hosted throughout the year provide a platform for entrepreneurs to showcase their innovative solutions and to expand their reach.??
One wonders what has led to this meteoric rise in innovation and technology in the city.?
We caught up with a few entrepreneurs to understand why companies prefer Dubai as a destination to set up their businesses and factors that enable business expansion.
A business-friendly environment
"Dubai has a business-friendly environment, with minimal red tape and low taxes. The government has implemented several policies to encourage entrepreneurship and innovation, making it an ideal location for startups and venture capitalists," said Ankit Sarwahi, partner at MEVP (Middle East Venture Partners), a leading venture capital firm in Dubai.
"In our experience of setting up two successful enterprises here, Dubai's business ecosystem is conducive for startups. The government fosters innovations at all levels and the regulatory framework is supportive. Moreover, organisations like the DIFC (Dubai International Financial Centre) drive the development of financial technologies within the region," said Padmini Gupta, CEO and co-founder of Xare, a fintech company.
The city provides a really favourable tax regime, strengthening its position as a global business and financial hub. The Free Zones offer 100% foreign ownership and a range of benefits including custom exemptions, tax exemptions, and very simple procedures to set up a business.
According to StrategyConnect's Shubham Yadav, Dubai has a "vibrant entrepreneurial culture" and "a?supportive ecosystem [that makes Dubai a top destination for entrepreneurs] like Dubai Future Accelerator by Dubai Government and Dubai Silicon Oasis."?
Also read:?How Technology Is Changing The Way Future-Ready Cities Like Dubai Are Built
Regulations and policies that encourage entrepreneurial ventures
"Dubai's Innovation Testing License and ADGM's Reglab: These policies allow startups to test their innovative products and services in a controlled environment before bringing them to market. This helps reduce the risk of failure and encourages experimentation and innovation," said MEVP's Sarwahi.
The Golden Visa is another cherry on the top! With this visa, investors and their families may get long-term residency in Dubai that may be extended up to 10 years. "This provides a sense of security and stability, which is essential for investors who want to establish a business or invest in real estate," Yadav said.?
MVEP's Sarwahi also echoed a similar sentiment, saying that the "golden visa programme?helps attract and retain top talent in the region, which is crucial for the growth of startups and businesses."
Infrastructure also plays a key role, and Dubai has invested heavily in transportation, telecommunications, and utilities - helping create an environment favourable for the growth of business opportunities along with development. To reduce bureaucratic dependence, the government has launched a series of PPP initiatives like AMER services that make setting up a new business an easy process.
Also read:?From World's Top Institutions To Fastest Global City: Here's All About Dubai Economic Agenda 'D33'
According to Sarwahi, business-friendly policies, access to capital, diversified economy, and supportive ecosystem make Dubai the optimum location for startups and entrepreneurs. "Dubai has developed a supportive ecosystem for startups and entrepreneurs. The city has over 10 state-of-the-art incubators, a dozen of accelerators backed by top banks in the UAE, and startup hubs that provide support to startups and help them grow their businesses," he added.
"Dubai has several free zones that provide tax breaks, 100% foreign ownership, and other benefits to businesses and investors. These zones make it easier for VCs like MEVP to invest in startups and businesses... Dubai has several government-backed venture capital funds that provide funding to startups and businesses," added Sarwahi.
Access to market and labour laws?
Location is of utmost importance for cities like Dubai that aim to become centres of technological advancement and business opportunities. Dubai is located at the crossroads of Europe, Asia, and Africa - making it an optimal location for accessing the market in these regions.
The government has also introduced a series of measures to protect worker rights, including the creation of a labour court and the introduction of a wage protection system. In addition, as Yadav pointed out, new regulations that combat discrimination in the workplace have also been meted out.?
The city has managed to strike the right balance in terms of favouring the employee and the employer. Straightforward labour laws are favourable to employees while making it easier for employers to instrument employment contracts, thereby reducing ambiguity in contracts and reducing conflict when contracts close.
According to Xare's Padmini Gupta, "because of its location, [Dubai] is open to international visitors, enterprises and talent. It is in between multiple time zones, which is favorable for multinational teams like ours."
Also read:?Artificial Intelligence Drives Dubai¡¯s Healthcare Revolution
Why entrepreneurs prefer Dubai
"Dubai's business-friendly environment has made it a gateway for many foreign web 3.0 startups looking to expand their operations in and from Dubai," said Sarwahi.?
¡°After a long stint in the venture capital market in India, I wanted to explore more markets and Dubai was both exciting and conveniently accessible. I knew I would gain exposure to a new demographic with abundant diversity and witness lifestyles that are completely different from one another even within MENA. It was purely that inquisitiveness that brought me to Dubai. At MEVP I found a long-term thinking institution that was committed to ushering technological change to MENA, and this dovetailed perfectly in my plans," Sarwahi added.
¡°Dubai is a world-class city in every way! Progressive, multicultural ?and inclusive. In some ways, something like Xare could only be built here - it needed that openness, that attitude of building the future and ¡®open-to-everybody¡¯ philosophy that Dubai embodies," said Xare's Padmini Gupta.
For more in the world of?technology?and?science, keep reading?Indiatimes.com.?
