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Top 5 Reasons to Start a Business in UAE

The UAE has become one of the most popular startup and investment hubs for global entrepreneurs. The UAE government is increasingly looking to stimulate the economy through foreign investment and create dynamic opportunities for foreign investors and entrepreneurs. These initiatives make the UAE the perfect place for a fresh start. Here are the top five reasons to start a business in the UAE.

Favorable Rules and Regulations:

Legal Framework: The UAE has an excellent regulatory framework for foreign investors to set up businesses in the country. With the exception of criminal law, there is a completely different set of rules and regulations for foreign nationals.

The procedure for licensing and registration to set up a business is very simple and requires no or little paperwork. Red tape is minimal and all legal proceedings are resolved quickly.

Flexible Visa Rules: The UAE's approach to family and employee visas is quite agreeable. The visa regulations are quite flexible for business owners planning to move to the UAE with their family and foreign employees. Since the visa is valid for one to three years, the relocation can be long term.

Easy financial transactions: Financial transactions are easy because the currency regulations that apply to foreign exchange transactions do not apply to companies in the free zone. In the SPC free zone, there is also no upfront capital requirement. This flexibility makes it lucrative for startups facing capital shortages.

Ease of doing business:

100% Foreign Ownership: UAE Free Zones offer 100% foreign ownership. This means that the business can be owned solely by foreigners without the need for a local sponsor.

100% Tax Exemption: Import and export duties are waived in the UAE Free Zones. This saves businesses from significant red tape and paperwork. With no excise tax, startups can earn higher returns on smaller investments.

Remittance of 100% of profits: When operating in free zones, foreign investors can remit all of their business profits back to the country of origin.

Well-connected trade routes: The UAE is well-connected to global trade regions in the MENA region. It has one of the most impressive transport infrastructure in the world in terms of roads, seaports and air routes.

No office space requirement: For freelance companies, having physical office space isn't always a prerequisite. In fact, in free zones like Fujairah Creative City, there is no requirement for office space. In some, you can even share offices or office locations. This saves investment in office infrastructure.

Sophisticated communication networks: A complex communication network combined with innovation and technology makes the business environment very attractive for startups.

World-class infrastructure: Strategic location, developed infrastructure and connectivity facilities make it easy for foreign investors to do business.

Abundant human resources: The UAE has skilled and unskilled human resources from more than 200 countries, making it easy for businesses to find workers from all areas of expertise.

Tax advantages

Currently, the UAE recognises several corporate ownership structures and offers different tax options to foreign investors. Many businesses in the UAE enjoy zero income tax on their profits as there is no personal or corporate income tax. However, this is changing. To meet international tax standards and minimise compliance burden for UAE businesses, the UAE will introduce Federal Corporate Income Tax (IRS) from 1 June 2023. However, the UAE will still is one of the countries with the lowest corporate tax rates in the world.

Increased stimulation of entrepreneurs and innovation hubs:

The United Arab Emirates is establishing innovation hubs to encourage foreign entrepreneurs to set up businesses in the country. They offer easier business licensing, flexible office space, and access to finance. The Dubai Chamber of Commerce's Entrepreneurship Division has launched the Dubai Startup Hub to attract startups to the UAE.

The Dubai Technology Entrepreneurship Campus (DTEC) was established by the Dubai Silicon Oasis Authority (DSOA). DTEC is the largest and only coworking space and technology hub in the MENA region for entrepreneurship and innovation. It is home to 800 startups, startup camps, Intelak incubators, and Intel Centers.

Quality of Life:

The United Arab Emirates is one of the wealthiest countries in the world and offers a good quality of life and high standard of living for expats living and working in the region. area.

There are many rental options, easy and reasonably priced.

It is home to world-class hotels, restaurants, schools, hospitals, retail and other amenities.


With such a favorable business environment, the UAE is one of the best places for local entrepreneurs and foreign investors to start a business. Low-cost start-up options, diversified business scope, tax advantages, modern infrastructure and access to international trade routes are some of the most favorable features.

If you are a foreign investor looking to start a business in the UAE, seek professional advice from business startup advisors such as Creative Zone.

Our team will help you choose the most appropriate jurisdiction for your business, legal structure, banking solutions, location, financing, and more. Feel free to contact us for more details.

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