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Ryaan Sharif is the General Manager of Flat6Labs in the UAE
“The backbone of the world’s economy.” Read any article about startups and SMEs, and at some point you’ll come across a variation of that phrase. But cliches are there for a reason. past estimates Assume that 90% of the world’s businesses are SMEs, which generate half of the world’s jobs. As of last December, other numbers Shows that small businesses provide 70 percent of jobs and 70 percent of global gross domestic product (GDP). In fact, they are the “backbone”.
If we delve into the United Arab Emirates — a global economic sensation by any measure — we see a similar story.as mid-2020, the UAE’s 350,000 small and medium-sized enterprises account for more than 94 percent of the country’s businesses, employ about 86 percent of the private sector workforce, and account for more than 60 percent of GDP. The reason has always been simple: private innovation and government commitment.
For every global sensation like Netflix, Uber and Airbnb, there is a UAE-based regional success story like Kitopi, Washmen or Careem. But while their ideas do capture a moment with amazing vision, innovation, leadership and perseverance, longevity depends on local regulations and access to funding, as well as the inspirational qualities that get companies out the door. Now, the aftershocks of the pandemic threaten to derail even ambitious businesses. Inflation, supply chain volatility, talent shortages—all must be addressed with strategies that leverage realities for sustainable growth.
the place is
However, the UAE has so far been less affected by these external factors than many other countries in the region and globally. GDP growth rate wandering in 6% and 7%.Foreign capital flows show no sign of slowing down as the country ranking It ranks first in the Arab world and 19th globally for its ability to attract foreign direct investment (FDI).
An increasingly sensible choice for any startup looking for a global headquarters is Abu Dhabi. The UAE capital is an economic and transport hub for the Middle East and North Africa (Mena) region, and we’ve seen a remarkable expansion of technology start-ups. MENA has a diverse client base that is above average tech-savvy due to the region’s relatively young population. This should attract tech startups poised to capture gaps in the market with the latest niche consumer apps or efficiency-driven B2B platforms. Many industries in the region are currently in introspection mode – looking for ways to reinvent themselves. This trend also represents a hodgepodge of empty spaces waiting to be filled by applications and solutions.
As regional startups expand their customer base and generate new revenue streams, they are gaining traction.Forbes in 2022 SME Financing Watch List, we found UAE agritech firm Pure Harvest Smart Farms to stand out in terms of funding ($387 million). Fintech companies Tabby (UAE), Tamara (Saudi Arabia) and ride-hailing, delivery and payments company Yassir (Algeria) are also on the list – all of which have received hundreds of millions of dollars in funding and are in the Middle East and North Africa Flourish.
government grant
In the UAE, the government plays an important role in business development. It provides an atmosphere for SMEs and entrepreneurs with the right mix of ‘out of the way’ (light regulation and taxation) and ‘engagement’ (effective advice, guidance and financial support). It’s all part of the government’s vision to diversify the economy. Leaders here are determined to build a sustainable, non-oil, knowledge-based economy and know that SMEs, not large corporations, are the way to get there. The Ministry of Economy has launched a number of initiatives, including Startup Nation, which provides assistance to entrepreneurs establishing or expanding their business in the UAE.
In terms of “get out of the way”, Title Corporation Tax Rate has been set at 9%, but many companies affiliated with free zones are exempt, and certain other conditions Exemption from import or export duties can be seen. The UAE also offers 100% repatriation of income and profits, and up to 50% reduction on more than 1,500 government fees. Risk management is also aided by Abu Dhabi Global Market’s application of English common law and its eCourt platform, which provides litigants and their lawyers with a holistic judicial dispute resolution service that is time and cost effective.
The world is facing a talent shortage, but the UAE has introduced golden visas and remote work visas to lure professionals into key positions in a country known for its high standard of living. As a result of these efforts, Abu Dhabi today is home to a large number of highly skilled professionals, including the engineers, scientists and technicians that start-ups need to succeed. In addition, initiatives such as the National Coders Program further contribute to Abu Dhabi’s growing talent pool, which is continuously supplied by universities and research institutions such as Masdar College, Khalifa University and NYU Abu Dhabi. Of course, top-notch infrastructure, high internet penetration, a strong banking system and digitized government services also fuel business, as does a vibrant culture, excellent medical facilities and a globally-renowned security environment that make it an ideal destination for business. An attractive residence for entrepreneurs and their families.
Of course, these benefits and luxuries come at a price, and startups planning to do business in the UAE need to be aware that the cost of living in the country is often high. This means they need to manage their finances carefully and secure enough capital to ensure their business can thrive in the region.
Seeds and Futures
Seeds Abu Dhabi is a source of mentoring, funding and networking opportunities in a government-sponsored SME incubation programme. Abu Dhabi is also home to many angel investors and venture capital firms specializing in technology. However, the downside is that as the nation’s capital is attracting entrepreneurs, it is becoming a highly competitive environment for founders. Startups are constantly racing to be the first movers and the best in their respective industries. In such an environment, only the fittest will thrive, so founders must capitalize on every ounce of motivation and not rest on their laurels.
Exploring new markets is the main way to increase revenue, thereby reducing risk and maintaining financial stability. Abu Dhabi is fast becoming a regional market capitalization – a fact recently learned by Indian health tech company DocVita, which provides AI assistants to medical professionals. With the help of Flat6Labs, DocVita expanded into the region through the Abu Dhabi Seeds Programme. It found that Abu Dhabi’s business environment and high per capita B2C population are ideal for start-ups – from legal regulations to the logistics of expanding itself.
The government is showing its support to entrepreneurs and paving the way for their success.
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