The low tax nature of the UAE makes the ongoing cost of operations in the country one of the cheapest in the world. This is attracting a large number of tech companies to setup business in Dubai, even though the setup and operating cost might be among the highest. According to a Google study, the entrepreneurial spirit in UAE is remarkably high,with one of the highest rates of startup community growing in the UAE.
With the government making business setup in UAE more lucrative, 2019 is going to be the year for the exponential growth of startups in the country. The UAE’s economy is expected to snowball over the next several years. Some of the startup-friendly initiatives taken by the government include incentives for female business owners, extended visa for elderly professionals, 100 per cent ownership of companies by foreigners, ten years extended visa and more.
The economy of the UAE is already one of the strongest in the world,and as more businesses pour in attracted by the incentives and the opportunities, the economy is expected to strengthen further. A strong economy and consistent policies are the cornerstones for startups and businesses to grow. The cabinet of UAE has approved a zero-deficit budget for 2019-21 of AED 180 billion. The budget for public welfare for the next year is sanctioned for an amount of AED60.3 billion. All this will attract talented people to live in the UAE and fuel the workforce of companies, making company formation and operation in the UAE ideal.
2.Extended Visas for Retiring People
The law is expected to come to effect during 2019 and will allow retired professionals to stay in the UAE even after their retirement. The move will allow professionals who have retired from their job to extend their visas and remain in the UAE for another five years. This policy will help entrepreneurs and seasoned professionals to stay in the UAE and setup companies after their retirement. It will also provide startups with highly qualified employees who have retired from their previous jobs to join the company as consultants or board members. Helping the startups’in UAE to grow.
3.New Opportunities in Dubai Expo 2020
Dubai Expo 2020 is expected to attract more than 25 million visitors from around the globe; this will create new opportunities for businesses involved in event management, hospitality, companies offering supplies and services to the exhibition. With less than a year to the expo, business setup in UAE to cater to the Expo has increased significantly.
4.100 Per Cent Foreign Ownership of Companies
Earlier to start a company in UAE, a business had to take a local partner; however, in a revolutionising more the UAE govt. will allow companies and entrepreneurs with foreign nationality to take complete ownership of the companies. This move will boost the startups and company formation in the UAE.
5.The Influx of New Talent
With the new visa system and the incentives offered by the govt. to people residing in the UAE, a large number of young talented people will seek the country as the new destination to work and live. This will fulfil the increasing demand for a skilled workforce for the growing startup companies.
These are the top five reasons why the UAE is set to become a startup hub. The economy of the company and the continued policy improvements by the government is making UAE ideal for any business to step up operations in the country.