How Dubai succeeded in attracting foreign entrepreneurs

There are a variety of factors that contribute to the success of a Company setup in Dubai. These include: zero-rate income tax regime, economic stability, and supportive start-up environment. But what makes Dubai stand out among other cities? The value proposition for foreign investors is unique in the world, and the city has a dozen world-class free zones. The city offers investors’ unbeatable incentives, such as 100% foreign ownership, free repatriation of profits and capital, and zero corporate tax rate for 15 to 50 years.

Tax efficiencies

The UAE has been a leader in international trade due to its many Free Zone companies. These entities enjoy several tax breaks, including 100% foreign ownership, customs and VAT exemptions, and repatriation of profits and capital. This new corporate taxation structure supports the UAE Government’s economic reform agenda and enables the growth of businesses. However, it is essential to note that companies registering in a Free Zone are subject to certain conditions. They must maintain adequate economic substance and comply with the regulatory requirements of the free zone that they have chosen to register in. In addition, they must not earn any income from entities based on the mainland.

Furthermore, the UAE has several free trade zones. These zones provide equal investment opportunities to foreign companies as Emirati citizens. In addition, all FTZs offer 100 per cent exemptions on import and export taxes. They also provide subsidized access to airports, ports and energy connections. In addition, they provide extensive support services.

Prime location

With cutting-edge infrastructure and a diverse talent pool, Dubai has become a prime location for entrepreneurs to build the next big thing. The government has created several initiatives to help encourage innovation, and its visionary leadership is committed to achieving ambitious goals. For example, it aims to become a paperless government by 2021. It also offers numerous financing options, including public-private partnerships.

The location of Dubai as a global gateway is another central selling point. It is within eight hour flight of two-thirds of the world’s population. This makes it an ideal entry point for foreign investors seeking access to emerging markets. The city’s proximity to Asia, Pakistan, and India open up opportunities for entrepreneurs who can leverage this region to their advantage. Dubai is a perfect location for new companies to launch their operations in the Middle East and beyond.

Flexible rules

In addition to its location, Dubai offers a flexible environment for entrepreneurs. This is in line with its historical reputation as an important trading hub, built on tax breaks for pearl traders. The city has developed several free zones to attract foreign investment and facilitate trade and exports. These free zones offer a flexible environment and modern infrastructure to facilitate business development.

With its focus on innovation and growth, the UAE fosters new technologies and startups. It has also announced its creation of Hub 71, a joint venture with Microsoft. This incubator aims to help foreign entrepreneurs establish a home in the UAE. It has already allocated AED500 million for this purpose.

Government produce economic incentives

Another factor that helped Dubai attract foreign entrepreneurs was the government’s ability to offer economic incentives to attract foreign investors. The UAE government introduced economic incentives in 2020 as part of Covid-19. This stimulus package included cutting fees for certain government services, offering fee payment on an instalment basis, and granting licenses to companies that do not have a physical location in Dubai. However, these incentives were limited to FTZs and did not apply outside the FTZ. Dubai also offers foreign entrepreneurs the option of purchasing freehold property in prime developments.


Sometimes, the Company registration in Dubai has also been instrumental in attracting foreign entrepreneurs. According to the United Nations Conference on Trade and Development, the UAE is the second largest recipient of foreign direct investments in Western Asia. Dubai’s stable economic climate and tax-free environment have lured many foreign investors. In addition, it does not limit the repatriation of profits, which is a significant attraction for investors. The government also provides a favorable environment for entrepreneurs to set up operations in the country.

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