Global entrepreneurs and investors have long regarded the United Arab Emirates (UAE) as an international business area.
The position of the nation, the tax norms that are in place, and the infrastructure that has been created point toward a nation that is well-poised for any business setup
Furthermore, the region also ensured that the momentum continued in the year 2024 with even more reasons for established entrepreneurs to start their business further in the UAE.
Why Business Setup in the UAE has become increasingly appealing lies in its strategic location, business-friendly policies, and robust infrastructure.
Additionally, there are several reasons which explain the phenomenon of increased business setup in the UAE, ranging from new regulatory frameworks to the value propositions of a strong digital economy.
Top 7 Reasons Why Business Setup in the UAE
1. Tax benefits and incentives
The UAE continues to provide a set of tax improvements in 2023, making it one of the most preferred business destinations in the world.
There was a major shift in the tax environment in 2023 with the introduction of a nine percent corporate tax on profits over AED 375,000, but there is still tax relief for many businesses.
For instance, free zones provide tax relief for up to 50 years or more on a specific zone and other facilities like customs duty and profits transfer.
The business ecosystem in Dubai is incredibly appealing to many, mostly because start-ups in Dubai are beneficial in terms of tax breaks that attract foreign investments.
Dubai International Financial Centre (DIFC) is an example of a tax-free zone in Dubai that caters to financial institutions.
This continues to be a major draw for foreign entrepreneurs seeking low-tax jurisdictions with global accessibility.
2. Geographical advantage and better linkages
The UAE’s geographical position between Europe, Asia, and Africa makes it a good trade and business zone.
Global markets are within the reach of the business operators in the UAE because of the country’s great infrastructure including the Dubai International Airport, which is among the busiest global airports as well as modern ports.
The city has turned out to be central to the logistics and business industry, such that short-distance trade, quick delivery, and growing markets have been made possible.
The extent of outreach to the Dubai population is another factor that makes business setup in Dubai quite popular as the city serves as a launching pad for penetrating the larger Middle East, African and Asian markets.
So, when seeking investment or looking forward to establishing a business in Asia, Africa, or the Middle East, the first step for every entrepreneur is to establish themselves in Dubai.
3. Strengthening the business and legal environment
The UAE has consistently improved its regulatory environment to foster business growth. In 2024, the introduction of more streamlined processes and support for foreign investors has been a significant factor contributing to the country’s business boom.
UAE improves its regulatory regime to achieve business expansion. In 2024, the introduction of simpler operations and the assistance of international investors has been of importance to the country’s business growth.
Besides, Dubai is taking many steps to further reinforce its legal framework to ensure that businesses operate effectively and with a high degree of certainty.
The formation of the Dubai International Financial Centre (DIFC) as a business and legal center for companies and banks enhances the country’s ideal of providing security and stability in doing business.
4. Flourishing start-up ecosystem
The start-up’s culture is well-developed in the United Arab Emirates, especially in Dubai. In 2024, the country raised its standards in the fields of technology, fintech, and e-commerce industries with numerous start-ups taking up residence in the UAE. To this day, Dubai Silicon Oasis serves as a prime resort area that is designated for tech entrepreneurs.
This development was assisted by the government through investing in areas of innovation encapsulated in the Dubai Future Foundation and Dubai 10X initiative, which seeks to revolutionize government services and nurture demand-driven businesses.
Dubai is well placed to provide an easy entry for numerous start and scale-up businesses owing to the availability of venture capital, incubators, and a well-structured and advanced IT infrastructure.
5. Access to a skilled talent pool
The popularity of setting up a business in the UAE has increased and this can be attributed to the country’s population who are proficient in business and are multi-diverse.
Given the huge number of expatriates, entrepreneurs can easily find many people with skills in several sectors such as finance, technology, health care, and hospitality.
Further, the country boasts of a favored political economy due to its numerous centers of excellence and technical vocational centers.
Furthermore, the employment and visa packages developed by different free zones in Dubai facilitate the recruitment of foreign workers.
This is a big plus for business owners who want to expand their businesses in 2024.
6. Business activities are easy to maintain
The constant construction of infrastructure in the UAE enables the country to have a great availability of almost all forms of facilities for industries.
Particular areas in Dubai such as the Dubai International Financial Centre (DIFC) & Dubai Internet City are fully equipped with high-class office buildings.
Furthermore, the logistics and transport services offered by the country allow for the quick and efficient movement of goods as well as persons.
The presence of modern office facilities, high-speed internet, and efficient logistics systems places the UAE in a position that can accommodate businesses of all magnitudes.
Such an infrastructure together with the government’s drive to develop smart cities and promote sustainability makes UAE a perfect location for companies whose basic strategies are centered on creativity and efficiency of operations.
7. Economic and Cultural Stability
The political stability and the good state of the economy of the UAE are some of the factors that will still attract investors in 2025.
They have been investing in strengthening the country’s leadership to guarantee its prosperity for the future by reducing over-dependence on oil to growing other industries such as renewable energy, technology, and tourism.
In addition, the cultural diversity and tolerance of the UAE make it a good place for international businesses to set up and operate.
In summary, the UAE business setup landscape is expected to flourish further in 2025 thanks to policies such as tax exemption, location, legal frameworks set in place, and the entrepreneurial culture in the region.
There are several factors of the Dubai economy including world-famous ones as well as less-known business opportunities throughout UAE that would be beneficial for your company.
With modern infrastructure, government support, and good laws and regulations, the United Arab Emirates will continue to be one of the best places for doing business in 2025.
