Imagine you set up a lemonade stand, and everyone in the neighbourhood wants that lemonade. That’s exciting. Currently, the UAE markets are at this juncture where everyone is asking what is the best business to start in uae. Businesses are experiencing an upsurge in demand for their products or services, often resulting from effective marketing, significant development, or other factors that make them highly appealing to customers.
In September, businesses in the United Arab Emirates (UAE) not linked to the oil industry experienced a faster growth rate than the previous month. The main reason for this growth was that these businesses received more orders to make and sell things. It’s a bit like the lemonade stand.
These businesses are gaining new customers, locally and globally. The increase in sales has boosted the confidence that the growth will continue. While the development is due to the widening market, the foundation the UAE has already laid for businesses is the fundamental reason why entrepreneurs set up and grow businesses in the UAE.
The UAE Soil – The land that grows businesses:
Before getting to what is the best business to start in uae, let’s fully understand why the UAE is famous as a world business centre. Decades of trade experience has created a business environment that has opportunities for both traditional and modern concepts to thrive in the UAE. Let’s explore the specific factors that help you start a business in uae and also contribute to its status as a global business centre:
1. World-Class Infrastructure and Service Sector
The UAE has invested significantly in transportation, telecommunications, electricity, and industrial infrastructure, resulting in one of the world’s most advanced infrastructure networks. Supporting this infrastructure is a sophisticated service sector that includes leading regional and international players in logistics, banking, healthcare, education, and more. For those looking to establish a business in uae without a permanent office, the UAE offers well-designed and fully equipped business centres for rent.
2. International Trade Network
The UAE boasts a vast international trade network covering 179 countries, providing investors access to a diverse global market for goods and services. It ranks among the world’s top export and re-export hubs, following only Singapore and Hong Kong.
3. Tax Haven
As one of the top 10 tax havens globally, the UAE offers an attractive tax environment for businesses. It imposes zero or minimal personal, commercial, corporate and professional taxes. This tax-friendly policy particularly appeals to foreign and domestic investors, as it ensures no unwelcome tax burdens on existing businesses and allows startups to thrive without excessive costs.
4. Government Support and Business-Friendly Policies
The UAE government actively supports economic diversification and international commerce. It promotes free trade and offers incentives to attract foreign investment, such as 100% foreign ownership in many cases. Business-friendly government institutions facilitate commercial activities and support those looking to establish or expand their businesses in the UAE.
5. Strategic Location
The UAE’s location near a global crude oil transit point has made it a well-connected trade centre. It provides easy access to emerging markets, making it a strategic place for businesses seeking to connect with major international financial capitals.
6. Modernization and Inclusivity
In just a few decades, the UAE has shifted from an economy based on fishing and agriculture to one with premier infrastructure and a progressive outlook. It has embraced modernization while respecting its cultural traditions. The UAE promotes gender equality, has job stability, offers top-tier healthcare and education, and maintains an open legal system.
Star Cities for business in UAE:
Several cities have played pivotal roles in establishing the UAE as a global business hub. However, here are some star recommendations for you to start a business in UAE.
Dubai is the most prominent city for business in the UAE. It has evolved into a global technology and cultural centre, characterised by its iconic skyscrapers and vibrant atmosphere. Areas like Silicon Oasis are renowned for their business-supportive environment, including facilities like Dubai Digital Park and Dubai Technology Entrepreneurs’ Campus.
2. Abu Dhabi:
As the political and economic centre of the UAE, Abu Dhabi holds approximately 10% of the world’s oil reserves. It boasts the Abu Dhabi Investment Authority, one of the world’s most significant sovereign wealth funds, attracting substantial investments.
3. Ras Al Khaimah (RAK):
Ras Al Khaimah Free Zone is a significant commercial hub, attracting over 12,000 businesses from more than 100 nations and across 50 industry sectors. RAK’s financial incentives and low-cost business setup have made it a thriving centre for various commercial activities.
The Budget Dilemma: Salaries and Living Costs
Salary Considerations: While a salary of 5,000 dirhams may suffice for single individuals, it’s essential to factor in your lifestyle, family size, and housing costs when determining your ideal compensation in Dubai or UAE.
Cost of Living: The cost of living can vary widely based on your lifestyle choices. Rent, education, and healthcare expenses can be significant, so it’s crucial to budget accordingly.
Minimum Salary: Under the UAE labour Law, The minimum salary for working in Dubai depends on the industry, position and the individual’s education.
Salary Standards: Salaries in Dubai span a wide range. What’s considered an excellent salary in Dubai varies depending on your profession and industry standards.
Smart Investment Choices
Investment Opportunities: Business in the UAE offers numerous investment options, from real estate and stocks to start-up ventures.
Investment Safety: UAE’s political stability and robust legal framework provide a secure and predictable investment environment.
Business Assistance: Consulting firms and legal experts, like Nair and Nelliyatt, can assist you in making informed investment choices and navigating local regulations.
The Fantastic Seven: Start a business in UAE step by step
If you’re intrigued by the UAE’s potential as a business destination, here’s a simplified guide on how to start a business in uae:
- Define Your Business Activities and Legal Structure: Every emirate has legal policies. Determine the type of business you want to establish and its legal structure.
- Choose a Trading Name: If yours is a new trade, reserve a trading name for your company.
- Select an Ideal Business Location: UAE’s trade zones are Mainland and free zones. Each has its benefits and limitations for your business in the UAE. Finalise the location for your business operations.
- Office Space: Depending on your needs, consider renting office space or opt for well-equipped business centres available for rent.
- Apply for a Business Licence: Every work trade, including freelance, needs a licence in UAE. Initiate the process of obtaining the necessary business licence.
- Secure External Approvals: Ensure you obtain any required external approvals.
- Open a Bank Account: Establish a bank account for your business to trade in.
What is the best business to start in uae? Here are some great starting points:
One of the best businesses to start in the UAE is undoubtedly in technology and innovation. Opportunities abound with a rapidly growing technology sector and a government keen on promoting innovation. Establishing a tech startup, offering IT services, or engaging in software development can tap into the country’s digital transformation drive.
Additionally, sectors like e-commerce, healthcare, and renewable energy are thriving, presenting promising avenues for entrepreneurs. The UAE’s strategic location, business-friendly policies, and diverse market make it an ideal destination for those looking to venture into cutting-edge industries.
The UAE is undeniably a land of opportunity for entrepreneurs and investors. Its forward-looking vision, progressive infrastructure, and tax advantages make it an attractive destination for businesses of multiple sizes. Whether you’re a recent graduate seeking employment or an established entrepreneur looking to expand globally, the UAE offers many possibilities.
Before delving into these exciting business prospects, it’s essential to highlight the crucial role that we, Nair and Nelliyatt, will play in your establishment. We are a renowned CA firm in Dubai that has helped numerous customers start a business in uae. Our expertise in navigating UAE’s business world, understanding its regulations, and offering the most apt solutions positions us as your ideal partner in this journey.
You can transform your entrepreneurial aspirations into thriving businesses in the UAE by conducting thorough market research, identifying gaps, and developing a robust business plan. With determination and strategic planning, the city’s dynamic economy is yours for entrepreneurial success.
To know more about investing in Dubai, check out our detailed guide to the best investment in UAE for maximising your wealth.