United Arab Emirates Lean Startup

Introduction

The United Arab Emirates is consistently ranked one of the easiest places for doing business in the Middle East and attracts companies applying the lean startup model. Over the past 10 years The Kingdom has successfully taken steps to diversify its economy from purely an oil producer or low tax haven to a diversified economy. Abu Dhabi serves as the political hub while Dubai acts as the financial and economic hub. 45 of the Fortune 500 companies base their Middle East headquarters in Dubai. The local citizens’ work tends to be subsidized from oil riches and government jobs, leading to a large expat talent base. The overall lifestyle and international population make the UAE a top location to expand your business in the Middle East.

Dubai

Dubai is the flashy, commercial emirate of the United Arab Emirates whereas Abu Dhabi is the quiet, political and “old money” center. Investments laid over ten years ago have already blossomed to make Dubai the top global business landing pad in the Arab world. The entire economy has been designed to attract and support global companies establishing operations including special economic zones, visa process, tax laws, government portals and incentive programs. Over 90% of the workforce in Dubai is made up of foreigners. While other Middle Eastern countries are looking to diversify their economies away from oil, Dubai has already accomplished this transition. This leadership has made it the preferred place to establish a global office in the Arab world. The government provides support programs such as the Dubai Lean Startup Hub though the Dubai Chamber.

Abu Dhabi

Abu Dhabi is another UAE emirate that has followed the same path of diversification and growth for its economy. Abu Dhabi is the seat of the government and is the largest and wealthiest of the emirates. The wealth and commercial activity of Abu Dhabi tends to be more geared towards local Emirate business and more traditional business such as energy, real estate and trade. While Dubai remains a safe first option for technology companies looking to hire foreign talent, Abu Dhabi can serve as a contrarian location depending on the business type match to local free zones.

Free Trade Zones (FTZ)

Free Trade Zones are economic areas where goods and services can be traded at preferential tax and custom rates. There are over 50 free trade zones within the UAE which are targeted to different industry types. Companies established in free trade zones typically allow for 100% foreign entity ownership which make them a key factor to consider when assessing a UAE global expansion. Each of these trade zones has developed a robust professional services sector to support companies looking to expand. Some of the more popular include Dubai Multi Commodities Centre (DMCC), Jebel Ali Free Zone Authority (JAFZA), Sharjah Media City (SHAMS), Dubai Airport Free Zone Authority, and International Free Zone Authority (IFZA). Strategic industry resources can be found in specific trade zones, for example the Jebel Ali Free Zone has numerous research facilities that companies looking to connect with local players would look to register under.

Dubai 2030

Dubai 2030 is the visionary strategy and policies established by Sheikh Mohammed to elevate Dubai into a global platform for knowledge and innovation. It will create modern infrastructure and innovation projects that support diversification from oil and investment in becoming leaders across many industries. While investments in clean energy are of strategic importance, investments in other innovation areas will cement the UAE as a regional and global leader. Dubai will continue to serve as an important hub for any business considering regional expansion into the Middle East and increasingly Africa.