Entrepreneurs are flocking to Dubai in droves as the Emirate has emerged as an attractive destination for businessmen with all over the world, thanks to its strategic location, climate, and trade policies, as the thriving offers a unique opportunity for ambitious individuals looking to expand their projects.
According to Wayne Liang, Forbes Councils Member and a Canadian entrepreneur who launched Liang Holdings, a venture capital firm based in the Middle East, one of the most important advantages for entrepreneurs who expand their businesses in Dubai is the potential tax advantages and attractive labour regulations, as the emirate provides a business-friendly tax environment.
In 2022, the UAE announced that it will introduce corporate taxes to support small businesses. The legal tax rate in the country will be 9% on taxable income that exceeds $102,000, which is one of the lowest and most competitive corporate tax rates globally and is in line with the UAE’s goal of maintaining its position as a leading destination for business and investment.
This can allow entrepreneurs to increase their profits and reinvest them to scale faster.
“In addition, there are no personal income taxes or taxes related to real estate or stock investments, which can make Dubai an attractive destination for entrepreneurs seeking to improve their financial earnings,” Liang said in a posting on Forbes Middle East magazine.
The government has also established free zones for foreign investors that provide customized support services and simplified procedures. These free zones provide various incentives, including 100% ownership, exemption from import and export taxes, exemption from corporate and income taxes and the ability to repatriate capital and profits.
The metropolis attracts a skilled workforce from diverse backgrounds, helping foster a multicultural business environment that encourages collaboration and innovation. Entrepreneurs can tap into an extensive network of like-minded individuals, potential clients, investors, and mentors to help accelerate the growth of their business.
Dubai also offers a unique advantage to entrepreneurs working in the technology and e-commerce sectors, and the opportunity to take advantage of relatively untapped markets with less competition, Liang pointed out.
While other global technology hubs may be saturated, Dubai continues to emerge as a major player in the technology and e-commerce sectors. By being an early adopter and offering innovative solutions, entrepreneurs can gain market share and establish themselves as industry leaders.
The city embraces technological developments and strives to create a futuristic environment that promotes innovation in various sectors and entrepreneurs expanding in Dubai can benefit from this ecosystem and take advantage of forward-thinking initiatives that encourage creativity and experimentation.
“From my perspective, Dubai also presents a unique advantage for entrepreneurs operating in the technology and e-commerce sectors: the opportunity to tap into relatively untapped markets with less competition. While other global tech hubs might be saturated, Dubai is still emerging as a major player in the technology and e-commerce sectors. By being early adopters and offering innovative solutions, entrepreneurs can carve out a market share and position themselves as industry leaders,” Liang added.