In the UAE, startups have every chance to break through

We live in a country where SMEs dominate the business scene. With this in mind, the Dubai government has created an environment designed to help start-ups gain easy and hassle-free access to information and services.

In fact, Dubai is now ranked among the top 10 startup ecosystems in the world. The UAE’s supportive start-up regulatory environment, entrepreneurial culture and strategic location have certainly helped foster a “can-do” attitude among entrepreneurs. Experts have observed that startups based in the UAE outperform new ventures elsewhere due to the unique combination of factors offered here.

A key advantage may be access to a diverse global talent pool. The UAE invests heavily in education, with a high concentration of top universities – so start-ups have access to a large pool of skilled and knowledgeable workers. The UAE has also implemented policies to attract foreign talent, making it easier for start-ups to recruit the best candidates.

Dubai’s mission to create a digitally forward-looking economy relies on expert talent. But with global competition to attract talent, the UAE moved quickly to offer a plethora of straightforward, easy-to-apply visas, from investors and entrepreneurs to freelancers and digital nomads.

The visa landscape changed significantly in 2019 with the introduction of the Golden Visa scheme. The visa offers selected foreign talent the opportunity to live and work in the country for 10 years without the need for a sponsor.

The country’s favorable regulatory environment makes it easier for start-ups to set up and run a business, including a simplified registration process, low tax rates and access to funding. The government has launched initiatives aimed at supporting start-ups, such as the Dubai Startup Hub, which provides entrepreneurs with mentoring, networking and funding opportunities.

It is generally accepted that approximately 20% of businesses fail within the first year and approximately 60% will cease trading within the first three years. With this in mind, Dubai’s business environment – from Dubai Chamber seminars to substantial investment support – supports start-ups.

For example, the Dubai Economic Agenda (D33) is a strategy to double the size of the emirate’s economy within the next 10 years and strengthen its position as one of the world’s top three cities. Part of the strategy is to launch an expanded program to make 30 companies global unicorns (startups valued at more than $1 billion) in new fields such as e-commerce and artificial intelligence.

The Sandbox program at Dtec (Dubai Technology Entrepreneur Park) is a supportive 12-month program offering workshops, mentorship and access to over US$150,000 plus in-kind credits from program partners for early-stage technology entrepreneurs.

Let’s not forget the UAE’s strategic location, which gives it access to a large and growing market. The UAE is the gateway to the Middle East and North Africa region, home to more than 400 million people. Thus, startups based in the UAE can access a large and growing market, which can help them scale their businesses faster.

cause: A ride-hailing platform founded in Dubai in 2012. The company quickly gained popularity in the MENA region before being acquired by Uber for $3.1 billion in 2019.

Sohu.com: An e-commerce platform established in Dubai in 2005, it was acquired by Amazon for US$580 million in 2017, and has since established itself as a leading online retailer in the Middle East.

With continued investment in education, infrastructure and innovation, the UAE is likely to remain a top destination for start-ups for years to come.