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The UAE is set to become the world’s number one location for new startups in 2019, thanks to a raft of new government incentives. The economy is expected to grow, Expo 2020 Dubai is just around the corner, and exciting opportunities are being created for entrepreneurs of all ages, genders and backgrounds. Numerous initiatives to benefit new start-ups include incentives for women business owners and young entrepreneurs, five-year visa extensions for older professionals, 100% foreign ownership of companies, and ten-year visas for some business owners and proprietors. so,
Here are six top reasons why entrepreneurs are considering the UAE as a top location for new startups in 2019.
1. Economic growth
The UAE is already one of the world’s leading startup hotspots. The economy and the entrepreneurial market will further strengthen as more businesses flock to the country, attracted by generous entrepreneurial and development incentives. In October, the International Monetary Fund raised the UAE’s economic growth forecast to 2.9% in 2018 and 3.7% in 2019, significantly higher than the 2% and 3% forecast in April. There are several factors contributing to the stronger economy, one of which is increased oil production and a rebound in oil prices, which gives the government more money to spend, with a $55 billion budget stimulus, but most importantly, the cyclical impact of the UAE’s recent easing It slowly ends, stabilizes, and then starts to pick up again.
A stronger economy will help entrepreneurs grow their businesses quickly and attract talent. The UAE Cabinet has approved a zero-deficit federal budget of AED 180 billion from 2019 to 2021. Meanwhile, Dh60.3 billion has been approved for next year’s budget, most of which will be allocated to sectors focused on citizens’ well-being, health and education. This will make the UAE more attractive to talent seeking to live in a country where quality of life is highly valued.
2. New visas for older foreigners
A new law that will come into effect in 2019 will allow foreigners to obtain extended residence visas in the UAE after retirement. This is a major incentive for older entrepreneurs and experienced professionals to stay in the UAE, and is expected to attract people approaching retirement age to set up companies in the UAE. The new five-year visa is particularly attractive to those who call Dubai or Abu Dhabi home. Visa Laws and Your Business The extension of residence visa is good news for entrepreneurs as it will encourage experienced professionals to continue to call the UAE home when they would have previously moved elsewhere to retire. This will help foster long-term growth and provide new ventures with a broader and more stable economic platform.
3. Exciting opportunities at Expo 2020 Dubai
As Expo 2020 Dubai approaches, demand for companies providing support services for “the greatest show on earth” will increase. The Expo is expected to attract 25 million visitors, creating huge demand for local entrepreneurs. Start-ups benefiting include event companies, the hospitality industry and companies that provide services and supplies for exhibitions. With less than two years to go, funding has been relaxed and tenders have been completed, a flow of funds that will directly stimulate the economy in 2019. It flows to all walks of life and all walks of life.
What the Expo means for your new business: Expo 2020 will provide a ready market for small and medium-sized enterprises of all types, designed to serve the specific needs of an influx of 25 million people. Many businesses will benefit simply from increased foot traffic.
4. Give the green light to 100% foreign ownership
Earlier this year, the UAE government announced its decision to allow UAE companies to be 100% foreign-owned. This is part of a new visa regime for international “investors and talent”, which includes 10-year long-term visas for certain categories of professionals, business owners and property owners. The Dubai Chamber of Commerce said the program is expected to lead to a significant boost for emerging small businesses in the UAE. The country plans to allow 100% business ownership in most businesses. This incentive was previously only available to companies operating in free zones – other companies were required to have a Emirati guarantor with a minimum 51% ownership.
How you benefit from the new law: This new 100% ownership rule and 10-year visa will allow business owners to plan better and place more emphasis on the training and upskilling of top talent, making it easier to attract top talent to the region and make the UAE a global scale. The shareholding ratio of global investors will reach 100% by the end of this year.
5. Opportunities for female entrepreneurs
Women make up 70% of the region’s university graduates and 44% of its workforce, and there has been a proliferation of support groups, consultations and workshops for female entrepreneurs. The Dubai-based Women’s Investment Network is simply a network that aims to help female entrepreneurs and other women manage their finances. With an increase in female investors and a more inclusive, diverse and thriving ecosystem, there has never been a better time for women to start a business in the UAE.
6. The influx of young talent
A new visa regime and a range of incentives for young entrepreneurs look set to attract a new generation of business leaders to the UAE and boost the local labor market with new talent.
How you can benefit as a young entrepreneur: New five- or ten-year student visas are being launched to enable students to stay in the UAE and find work after graduation. Other initiatives include Expo 2020’s Youth Connect programme, which aims to encourage young people to become “tomorrow’s innovators and thought leaders”. Meanwhile, the government’s program for Emirati youth aged 21 to 30 aims to help innovative young people obtain a comprehensive business education.
With the UAE’s economy expected to grow significantly and with a raft of initiatives aimed at attracting entrepreneurs and helping new startups grow, 2019 looks set to be an ideal time to do business in the UAE.
Related: Top 4 banking issues affecting UAE corporate formation
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