Unlocking the Entrepreneurial Spirit: Dubai’s Vision

18 Dec Unlocking the Entrepreneurial Spirit: Dubai’s Vision

What can you say about a city that is focused on helping entrepreneurs launch their dream projects by helping them with the seemingly elusive and much-required financial support?

That it is progressive, open to innovative ideas, is ambitious and most importantly, recognises that entrepreneurs are the building blocks of the future.

Government Initiatives Supporting Dubai Entrepreneurs

The Mohammed Bin Rashid Fund (MBRF) announced the launch of a receivable finance facility through to help entrepreneurs set up businesses by granting them credit for operating expenses. The fund will give beneficiaries a short-term credit facility starting with 10,000 dirhams and going up to a million dirhams, depending upon each individual case.

Further, during the first half of this year, members of Dubai SME, the agency of the Department of Economic Development (DED) set up to develop the small and medium enterprise (SME) sector, won contracts worth 17 million dirhams under a partnership between the agency and Dubai Holding. Dubai Holding offers a 20 percent discount on industrial land, workers housing, commercial and industrial warehouse, offices, galleries and shops, for five years.

Another initiative to support entrepreneurship that was also introduced in November of this year was a partnership between Dubai SME and Aswaaq, under which entrepreneurs registered with Dubai SME will be allowed to operate franchised retail outlets under the brand name ‘Aswaaq Mart.’

The Government of Dubai recognizes the crucial role entrepreneurs play in driving economic diversification and innovation. To foster a thriving entrepreneurial ecosystem, several initiatives offer aspiring business owners valuable support. Here’s a brief look at some key programs:

• Funding and Grants: Dubai offers various funding avenues for entrepreneurs. The Mohammed bin Rashid Innovation Fund, for example, provides financial support to innovative startups with high-growth potential. Additionally, free zones like Dubai International Financial Centre (DIFC) and Dubai Multi Commodities Centre (DMCC) offer grants and subsidies to attract businesses within their specific sectors.
• Business Setup Support: Streamlining the business setup process is a key government priority. Initiatives like the Dubai Startup Hub, a one-stop shop for entrepreneurs, provide guidance and assistance with company registration, licensing, and visa applications. Free zones also offer dedicated support teams to expedite the setup process for businesses operating within their jurisdictions.
• Incubators and Accelerators: Dubai boasts a robust network of incubators and accelerators that provide entrepreneurs with invaluable resources like shared workspace, mentorship programs, and access to industry networks. Entities like in5 – Dubai Science Park and Dubai TechnoPark offer specialized incubation programs tailored to specific industries like technology and sustainability.
• Tax Benefits: Dubai’s tax regime proves highly attractive for entrepreneurs. The emirate offers a zero-percent corporate tax rate for businesses operating in mainland Dubai and free zones (excluding specific sectors like oil and gas). Additionally, there are no personal income taxes, further incentivizing entrepreneurs to establish themselves in Dubai.
• Training and Skill Development: Recognizing the importance of entrepreneurial skills, the government supports initiatives offering workshops and training programs. The Dubai Chamber of Commerce and Industry (DCCI) and Dubai SME offer programs on topics like business planning, marketing, and financial management, equipping aspiring entrepreneurs with the knowledge to navigate the business landscape.

Richard Branson once said that the best way forward is to give more people everywhere greater power to build their own destinies. By investing in the dream of budding and motivated with access to early capital and strong mentorship, Dubai is helping launch thousands of new businesses across the emirate in the years to come.

How to Become a Dubai Entrepreneur: A Step-by-Step Guide

Identify Your Business Idea:

The first step in your entrepreneurial journey is to identify a viable business idea. Brainstorming techniques like mind mapping, freewriting, and asking “what if” questions can help generate creative ideas. Conduct thorough market research to validate your idea’s potential. Analyze industry trends, target audience needs, and competitive landscape through surveys, focus groups, and online data analysis tools.

Develop a Business Plan:

A well-structured business plan is crucial for any aspiring entrepreneur. It serves as a roadmap for your venture, outlining your goals, strategies, and action plans. Key elements of a strong business plan include an executive summary, company description, market analysis, operational plan, management team details, and financial projections. Leverage resources like the Dubai SME toolkit, templates, and workshops to create a comprehensive business plan tailored to the local market.

Secure Funding:

Access to adequate funding is essential for launching and scaling your business. Dubai entrepreneurs can explore various funding options, including:

• Bank loans and financing from institutions like Emirates Development Bank and Dubai SME
• Government grants and initiatives like the Intelaq program
• Angel investors and venture capitalists active in the UAE’s startup ecosystem
• Crowdfunding platforms

Business Setup Consultants can assist you in navigating these funding sources, preparing pitch decks, and securing the capital you need.

Choose the Right Business Structure:

Dubai offers several business structures, each with its own advantages and requirements. The main options include:

• Mainland Company: Suitable for businesses targeting the United Arab Emirates (UAE) market, with 100% foreign ownership allowed in certain sectors. 
• Free Zone Company: Ideal for businesses focusing on import/export, with 100% foreign ownership and tax benefits. Business Setup Consultants can evaluate your specific needs and advise on the most appropriate structure, facilitating the incorporation process.

Obtain a Trade License:

Operating a business in Dubai requires obtaining a trade license, which varies based on your business activity and location. The process involves submitting required documents, paying fees, and fulfilling any additional requirements. Business Setup Consultants can guide you through the trade license application process, ensuring compliance with all regulatory requirements.

Comply with Regulations:

Dubai has a well-defined regulatory framework for businesses. Key considerations include:

• Visas: Entrepreneurs must secure appropriate visas for themselves and their employees.
• Taxation: While there is no personal income tax, businesses may be subject to corporate tax and value-added tax (VAT).

Business Setup Consultants stays up-to-date with the latest regulations and can ensure your business remains compliant throughout its operations.

Set up your business

Looking to start your business in Dubai or anywhere in the UAE? We at BSC help you with all the paperwork and essentials you need to get started. Give us a call on +971 4 4301245 right away!