For Indian SMEs looking to expand internationally, the challenge isn¡¯t just ambition¡ªit¡¯s about overcoming regulatory hurdles, managing costs, and finding the right market. But what if there was a city designed to make the process easier?
¡°Dubai offers the best of both worlds¡ªa vibrant place to live and a dynamic environment to build a business,¡± says Kunal Kapoor, CEO of The Luxury Closet. ¡°There¡¯s minimal red tape, access to capital is abundant, and scaling beyond borders is seamless.¡±
It¡¯s no surprise that Dubai has become the go-to hub for Indian entrepreneurs aiming to take their businesses global. With 100% foreign ownership, simplified regulations, a tax-friendly structure, and cutting-edge digital infrastructure, Dubai is helping Indian SMEs transform global ambitions into reality.
Dubai has actively cultivated a regulatory environment that simplifies business setup, particularly for international entrepreneurs. Indian SMEs can enjoy full ownership without local sponsors, allowing them to retain control and maximise profits.
"The ease of doing business here is unmatched,¡± says Aayushman Dalmia, Founder & CEO of Zoftware. ¡°Dubai offers 0% corporate tax (up to AED 375,000), no personal income tax, and full foreign ownership. This allows startups to reinvest in growth and scale efficiently.¡±
The Zero Government Bureaucracy (ZGB) Programme further reduces administrative bottlenecks, making processes quicker and more efficient. Dubai also provides two distinct business setup options¡ªMainland and Free Zones. While Mainland businesses can work with government entities and access a broader customer base, Free Zones offers tax exemptions, industry-specific infrastructure, and lower operational costs.
Dubai¡¯s geographical position at the crossroads of Asia, Europe, and Africa gives Indian SMEs a gateway to global markets. Its world-class logistics infrastructure ensures seamless trade, faster shipping, and reduced supply chain costs.
¡°The city¡¯s position as a regional hub provides access to MENA, APAC, and Africa,¡± adds Dalmia. ¡°This makes it a natural choice for companies like ours looking to scale beyond borders.¡±
Dubai is also a thriving logistics hub, making it an ideal location for supply chain-driven businesses. As businesses increasingly look for efficient trade routes, Dubai¡¯s advanced ports, airports, and road networks provide a competitive edge.
For SMEs, funding is often a major challenge, but Dubai¡¯s venture capital networks and fintech sector are changing the game. The city's financial ecosystem provides entrepreneurs with access to private wealth, venture capital, and government-backed funding initiatives.
¡°We¡¯ve successfully raised over $30 million, primarily from regional investors,¡± shares Kapoor. ¡°Dubai¡¯s ability to attract venture capital speaks volumes about its business environment.¡±
Dubai is also focusing on digital transformation and economic growth through the Dubai Economic Agenda (D33), which aims to double the emirate¡¯s economy by 2033. This initiative is expected to create more opportunities for Indian SMEs, particularly in tech and sustainability.
¡°This agenda gives adequate prominence to sustainable growth,¡± notes Dr Miniya Chatterji, CEO of Sustain Labs. ¡°Hadi Badri, CEO of Dubai Economic Development Corporation (DEDC), is a strong advocate for sustainability. However, delivering on these targets depends heavily on a green supply chain. Indian SMEs are well-placed to offer products and services that support Dubai¡¯s sustainability goals.¡±
Dubai¡¯s paperless government and smart digital infrastructure make it an attractive destination for tech-driven businesses. The city¡¯s focus on automation has significantly reduced operational friction, allowing companies to operate with greater efficiency.
¡°Smart government services and automation have streamlined compliance, payments, and licensing,¡± explains Dalmia. ¡°For SMEs, this digitisation makes it easier to adopt and integrate software solutions.¡±
Dubai¡¯s pro-tech policies further encourage innovation, creating a strong demand for AI-driven businesses. ¡°The ease of doing business and access to government-backed initiatives have positioned Zoftware for rapid regional expansion,¡± he adds.
The city¡¯s digital-first approach also aligns with its sustainability goals. Chatterji highlights how technology is playing a crucial role:
"Digital solutions replace paper and reduce unnecessary movement, thereby lowering emissions and improving environmental sustainability. Dubai¡¯s focus on technology and digital transformation makes it easier and more affordable for Indian SMEs to engage in sustainability-focused business."
Why Indian SMEs Should Look at Dubai
Beyond business incentives, Dubai offers an ecosystem that values meritocracy. ¡°Unlike popular notions, Dubai-based entities¡ªboth government and private¡ªseek the best,¡± notes Chatterji. ¡°If an Indian SME has a strong track record¡ªespecially in Europe or the US¡ªthe doors will open.¡±
She adds that Indian businesses have a strong reputation in tech-driven solutions, which extends to sustainability initiatives as well. ¡°Indian SMEs incorporating technology-driven sustainability solutions are likely to find a receptive market in Dubai,¡± she says.
For Indian entrepreneurs looking to expand globally, raise capital, and scale efficiently, Dubai provides an ideal launchpad. As Kapoor puts it:
"I strongly encourage founders with innovative ideas to come to Dubai, contribute to its flourishing economy, and build businesses that are truly unique."
With its strategic location, pro-business policies, and relentless drive for innovation, Dubai isn¡¯t just a hub¡ªit¡¯s a launchpad for bold ideas, a gateway to global markets, and a catalyst for success. For Indian SMEs ready to scale beyond borders, the time to seize this opportunity is now.