While entrepreneurship comes with excitement, independence, and freedom, it also means saying goodbye to your steady monthly pay cheque, and embracing a sense of uncertainty that can seem strange after working a steady job for many years. However, the good news is that there really is no better place to start a business than the UAE. Along with its thriving economy and excellent infrastructure, the UAE government offers a wealth of support for entrepreneurs and those who dream of launching their own company.
On a mission to encourage innovation and inspire all of us to take a risk and leap into the world of business ownership, the UAE government offers a wide array of grants, programs, and services for start-ups. So, if you are nervous to take the plunge into business ownership, don’t be. In this blog, we will put your mind at ease by running through some of the many ways that the UAE government supports businesses, including where you can gain funding and mentorship, how to set your business, and the many different business licenses that are available.
Established Free Zones
The UAE is home to more than 40 ‘free zones’ - areas where expatriates and foreign owners can enjoy 100% ownership over their business. But the many benefits of free zones don’t stop there. Making it easy and simple to set up a business, all the UAE’s free zones come with tax exemptions and support services such as customs clearance, warehousing, and office facilities.
Additionally, free zones help its businesses and freelancers obtain all the relevant trade licenses they need and visas for themselves and their staff. While some free zones welcome every kind of business, some are specifically designed for certain industries. For instance, twofour54 in Abu Dhabi is focused exclusively on media, gaming, and entertainment, and it has tailored its facilities to include recording studios, film sets, creative suites and more amenities that are likely to appeal to media businesses.
Other free zones across the UAE include:
- Abu Dhabi - Abu Dhabi Global Market, Masdar City
- Dubai - Dubai Design District, Dubai World Trade Centre
- Ajman – Ajman Free Zone, Ajman Media City Free Zone
- Fujairah – Creative City Free Zone, Fujairah Free Zone
- Sharjah – Sharjah Publishing City, Sharjah Media City
- Ras Al Khaimah - Ras Al Khaimah Maritime, Ras Al Khaimah
- Umm Al Quwain - Umm Al Quwain Free Zone
Varied business licenses
Business licenses in the UAE cover more than 2,000 economic activities under the 6 types of licenses- industrial, commercial, crafts, tourism, agricultural, and professional. So, you don’t have to worry that there won’t be a license available for your type of business. Your license can also include more than one activity, and the support services department of your free zone will help you with the process of applying for it.
Those who are looking to set up extra fast can apply for the Instant Business License. Introduced in 2018 by the Dubai Department of Economic Development (DED), the Instant Business License allows investors to receive a business license within just five to ten minutes and start operating business activities in Dubai almost instantaneously.
Accessible funding and loans
Finding enough funds to set up a business and get it up and running is often a key challenge for entrepreneurs. But in the UAE, there are various funding schemes and loans available. This includes:
Startup funding from Hub71
Hub71 is a dynamic community of free-thinking and boundary pushing entrepreneurs. By collaborating with major business stakeholders such as Abu Dhabi Global Market (ADGM), Mubadala Investment Company and other key business players, it provides essential funding and support for Abu Dhabi’s next generation of technology startups. Entrepreneurs can apply for various Hub71 programs that include AED 250,000 worth of support services, and AED 250,000 to exchange for equity. High-performing startups can also apply for a top-up of up to AED 250,000 after one year.
Emirates Development Bank (EDB)
Open to businesses specializing in industrial, healthcare, energy, food security, and innovative technologies, EDB offers businesses low interest rates and flexible loan repayment options. Two types of businesses can apply:
AgriTech
EDB’s AgriTech credit program for farmers, local producers, agricultural equipment, and technology suppliers provides financing for green and brownfield projects, working capital financing, and loans of up to AED 5 million.
SME Finance
The SME Finance lending program offers various forms of financing for SMEs.
The Mohammed Bin Rashid Innovation Fund
The MBRIF Fund Guarantee Scheme provides businesses in the education, energy, healthcare, water, transportation, technology, and space sectors with financial support in the form of government-backed credit guarantees. This means that participants can apply for a business loan without diluting equity.
Mohammed Bin Rashid Establishment for SME Development — Dubai SME
The Mohammed Bin Rashid Establishment for SME Development has its ‘Dubai Next’ crowdfunding platform which provides start-ups from every business with funding, and additional help with obtaining trade licenses.
Dynamic business incubators
The UAE’s many business incubators connect startups with potential investors, and provide them with mentorship, training, and networking opportunities that can prove crucial for success. Some of the most exciting government-backed business incubators include:
MBRIF Accelerator
Backed by the federal government, the MBRIF Accelerator identifies promising businesses and provides them with training, mentorship, assistance with recruitment, and other forms of guidance.
Hub71
Along with the funding mentioned above, Hub71’s Access, Digital Assets (dedicated to Web3 and blockchain technology), and ClimateTech programs include three months of mentorship. Participants will also be connected to Hub71’s network of leading regional and global government, market, and investment partners.
MBZ Incubation and Entrepreneurship Center
MBZ Incubation and Entrepreneurship Center supports businesses related to artificial intelligence by offering comprehensive entrepreneurship courses, AI engineering support, computing resources, funding opportunities, and networking events.
Area 2071
Overseen by the Dubai Future Foundation, members of Area 2071 can enjoy access to a network of strategic partners, entrepreneurs and investors, and subsidised licensing fees. It also helps entrepreneurs who have an established business acquire a five-year visa (provided they have a minimum capital of AED 500,000).
Fazaa Center for Business Incubators and Accelerators
Emirati entrepreneurs can receive logistical support, training, qualifications, and consultancy services from the Fazaa Center for Business Incubators and Accelerators.
The UAE Ministry of Economy (MoE)
The UAE Ministry of Economy (MoE) provides businesses with funding, growth programs, training schemes, and networking events. In addition, The Entrepreneurial Nation platform offers guidance and information about how to set up a company, resolve financial matters, and navigate other issues involved with business ownership.
PR & Promotion
Once you have funding, investors, and a proper strategy for your business, you also need to promote it. ‘Hi Dubai’ is another successful scheme by The Mohammed Bin Rashid Establishment for SME Development. It provides entrepreneurs with free PR services and enhances their visibility by placing them on the project’s website.
How does Cloud Spaces Factor in?
Besides having one of our spaces in ADGM, a free zone in Abu Dhabi, we at Cloud Spaces provide PRO services to our clients which includes all the support and resources businesses need to set-up in the UAE and continuously prosper and thrive. From licensing needs to marketing and promotional needs, our in-house support has got your back.
To find out more about the services we offer, please visit cloudspaces.ae/en/office-support-services.