Dubai emerges popular destination for entrepreneurs, millionaires and startups
Dubai is an established international business hub and recent visa and labour reforms will further strengthen its position as a popular destination for entrepreneurs, millionaires, startups and scale-up businesses, experts say.
Analysts, executives and industry specialists said recent visa reforms, change in weekend in line with international markets and conducive environment for business will attract high net worth individuals (HNIs) and worldwide investors in key sectors of the economy.
Referring to the new rules for the 10-year Golden Visa, five-year Green Visa and other reforms, experts said Dubai will attract global talent, skilled professionals, freelancers, investors, and entrepreneurs that will ultimately benefit the economy.
Saad Maniar, senior partner at Crowe, said Dubai has always been and will continue to be the popular destination for HNIs from tourism perspective, as Dubai has very high standards of safety and security coupled with the amazing infrastructure and plenty of to-do things in Dubai.
“From the business perspective the overall infrastructure is business friendly, with airlines offering connectivity to all major cities in the world, makes it very attractive for business owners to establish their presence in Dubai,” Maniar told Khaleej Times on Sunday.
“Over the years, we have seen that a small percentage of tourist are attracted toward Dubai, so much so that they end of getting employment or start their own business, which is not normally the case for other places in the world,” he said.
Tourism a major beneficiary
Fadi Rizkallah, general manager, Freedom2Work.com , echoed the similar views and said recent reforms will have positive impact on Dubai economy in general and tourism sector in particular.
“I believe that visa reforms will in turn have an encouraging effect on personnel from all high end backgrounds. The better facilitation for individuals to find and explore the economic benefits of a country, the more inclined they are to take risks and jump on the business wagon of establishing the next successful enterprise,” he said.
“Better visa reforms are a social security indicator which provides a safe investing haven for people with the right financial mentality, opening up a place and attracting the young and innovative mind to come,” he said.
Dubai a safe destination
Pratik Rawal, managing partner, Ascent Partners, said Dubai is an established international commercial hub and it is one of the safest destinations for high net worth individual and entrepreneurs.
“All of that and more. The banks appear optimistic with the new visa reforms, which reveal Dubai to be a stable and safe place to conduct business and scale-up for a long-term investment,” Pratik told Khaleej Times on Sunday.
Ms Sakina Dickenwala, associate partner – Legal at MBG Corporate Services, said a major purpose for the new visa reforms was to make the country more attractive investors, entrepreneurs, and HNIs.
“For one, holders of golden visas are no longer restricted by the amount of the time they can spend outside the country. This allows HNIs with international commitments the freedom of movement that they require. It will also be possible for those looking to create startups to apply for a green visa. Much like the golden visa, a green visa will not require a sponsor. This visa will allow entrepreneurs the ability to move to Dubai with the exclusive purpose of establishing a business, without having to be concerned with the hassle of finding a sponsor,” Dickenwala said.
Hatem Elsafty, managing director, Business Link, said Dubai has long been home to various tourists and businesses in different industries – which to date, are flourishing increasingly.
“This makes Dubai a massive business hub that continues to bring in local and foreign investors. With some of the best incentives offered and a highly flexible business environment, it’s one of the top locations for businesses of any size,” he said.
He said the reasons for the same are quite straightforward. Firstly, given the large scale at which businesses in the city operate, Dubai offers the opportunity to house your business in an economic zone best fit for your needs. Known as mainland, freezone, and offshore, these zones have their own laws and cater to your unique business requirements and needs, he said.
Secondly, he said the federal corporate tax imposed by UAE is among the lowest in the world. “Placed at nine per cent on profits up to Dh375,000, the tax regime is set to be effective after June 1, 2023. To run operations in an economy as vibrant as the one UAE has with minimal tax is nothing less of a dream for investors,” he said.
Lastly, he said with the UAE government looking to grow its economy, it is home to a plethora of startup incubators and funding initiatives.
“Partnering with investors looking to grow and start their brand not only helps the country and its economy but also provided necessary aid to investors looking for support,” Elsafty concluded.