The last three years have seen a plummet in oil prices. This has placed Middle Eastern countries at risk of losing out in the global race. But what is startling is that Dubai has emerged as one of the five fastest-growing economies in the world. Dubai has rather diversified and is drawing tech talent from across the globe.
Now tech startups are viewing Dubai as their preferred destination due to multiplicity of reason. Basically, Dubai offers the right infrastructure to bolster the growth of startups.
- Recent developments in the context of start-ups in Dubai
- Certain positives which are paving way for setting up start-ups
- Reasons why Dubai is fast emerging as a start-up hub
Dubai is, as a matter of fact, an attractive location to bear in mind for the tech community from around the world. There are several startups that are adhering to this aforementioned fact. You can see Careem as well as Bridg, that is emerging as the most prominent startup in Dubai. Looking at these companies it is certainly not wrong to say that Dubai is all set to establish itself as the next Silicon Valley.
Government, as well as semi-government institutions in Dubai, are giving the necessary impetus to vital sectors such as education, health, infrastructure, transport, etc. Due to the decrease in the cost of technology entrepreneurs are accessing inexpensive tools for setting up new companies. As per experts, it is the best time for big-scale investors to look out for new investment options in different entrepreneurial ventures in Dubai so as to attain long term benefits.
Recent developments in the context of start-ups in Dubai
Google has collaborated with Astrolabs to assist start-ups to grow with innovation. As per worldwide Google for Entrepreneurs partner network, Astrolabes has shared techniques that are facilitating exchanges with top tech hubs from different parts of the world. This is done to expand the level of experience as well as the level of skill of startup entrepreneurs. The entrepreneurs are given the opportunity to learn new things which would help their companies to grow. Dubai offers a free zone environment to entrepreneurs. Local entrepreneurs are given mentorship guidance. Learning opportunities are provided to them, which can help them to grow their enterprises.
The Dubai Multi Commodities Centre is assisting entrepreneurs to set up their companies within a free zone environment under a subsidized fee structure, thus, paving the way for young start-ups to effectively establish themselves. Rise in the number of angel investors and venture capitalists. Change in focus from real estate to tech startups, healthcare etc. Growing popularity of different platforms such as Eureeca and Magnitt that are connecting startups to investors.
Certain positives which are paving way for setting up start-ups
- The population of Dubai has grown immensely over the last few years. The people of Dubai along with the expats are now coming up with innovative ideas for tech startups.
- Another good thing here is that there is a rise in the participation of women in these tech startups.
- 70% of total GDP is contributed by the service sector. This sector offers a lot of push to startups by giving people an opportunity to present their ideas before potential investors.
- There are several support groups, meet-ups, and a rising number of co-working spaces that facilitate constructive interactions.
- Dubai encompasses a diverse range of customers, needs and demography and this can be said as the major reason for setting up the start-ups.
Reasons why Dubai is fast emerging as a start-up hub
1. Dubai is an entry point to fast-developing markets of the Middle East, Asia, and Africa
These are certain markets in the world that are actually growing at a mind-blowing rate and to access these markets Dubai is serving to be the entry point. Dubai has outstanding trading and transportation infrastructure. Countries such as India and Nigeria are growing at a rate of more than 5 % in a year. Dubai might not be geographically central to these developing markets, but as it is technologically so advanced expats are pouring in for business here.
2. No income or sales tax for companies and expats
The low tax structure makes Dubai an ideal option choice for budding entrepreneurs and start-ups. People do business with an open mindset and they are not bogged down with pressure of useless taxation. Every sector in Dubai is witnessing growth, be it tourism, transportation, health, etc. The start-ups prefer Dubai as paperwork is very less here and they can set up their company without any much hassle.
3. Superb connectivity offered by Dubai International Airport
One of the vital reasons contributing to Dubai becoming a key destination for start-ups is the amazing connectivity provided by its airport. Dubai International Airport operates a whopping 2,000 flights in and out of the country each day. This helps to bolster vital connections with other parts of the world. There are set routes to Europe and to Silicon Valley. This ropes in both the talent and the investors from all over.
4. Governmental Support
The government is instrumental in attracting expats to come in Dubai for setting up innovative projects. As a matter of fact, Dubai now boasts of a GDP of approximately $45,000 per capita. This tax haven has emerged as the dream destination of entrepreneurs as they receive a lot of assistance because of several incubators as well as accelerator programs that are operating here.
5. Angel Investors as well as Venture Capitalists
Dubai is actually a hub of some of the wealthiest people across the world. This high-end vacation spot has emerged as a destination for settling down for billionaires searching for a place to live. So, a number of angel investors and venture capitalists, which you will witness in Dubai may not be seen anywhere across the globe.
So, these are a few reasons that are establishing Dubai as a fast-emerging start-up hub. This entrepreneurial Mecca offers several mind-blowing opportunities to innovative business owners to establish themselves. The sponsorship and aid which startups receive here they do not get anywhere else.