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The UAE’s digital economy will grow to $140b by 2031. Looks like it's time to get this thing going

The UAE’s digital economy will grow to $140b by 2031. Looks like it's time to get this thing going

Impressive data from Dubai Chamber of Commerce. Dubai-based startups play a significant role in this growth. Since 2017, Dubai's startups have snatched up about 96% of all the funds raised in the UAE. So, if you're thinking about a platform to start a business, here it is!
96% Of all funds focused on Dubai startups
60% Of all MENA fintech companies based in Dubai

Sounds ambitious. It is even possible?

Hadi Badri, CEO of the Economic Development Department at the Department of Economy and Tourism, shared the UAE's vision at the World Government Summit. He said they want to attract at least 300 new tech companies by 2024 and then have more than 20 unicorns (super-success billion-dollar startups) by 2030 to make the country proud.
“Entrepreneurship and innovation are in our blood and our DNA. We, as a government, are committed to providing the right support and infrastructure to foster that growth” Hadi Badri, CEO of the Economic Development Department at the Department of Economy and Tourism

If you're already brainstorming about startup ideas in the UAE, here are some sectors to consider:

Fintech

The UAE is the leader in financial technology (fintech) in the Middle East and North Africa (MENA). They have a large share of the region's Fintech activity, with about half of all new companies, funding deals, and total funding coming from there. There are more than 2,600 Fintech companies registered since 2017. The UAE also supports innovation with its infrastructure, such as 9 regulatory sandboxes, 5 investment funds, and government-backed accelerators.
Fintech hub
Dubai is known for its booming fintech scene. According to Mordor Intelligence, the global fintech industry is set to be worth $608 billion in 2029. The fintech market in the MENA is projected to grow at an impressive compound annual growth rate of 8% from 2024-2029. It is way above the global average.
Dubai has almost 60% of all MENA fintech companies, so it's a major hub for financial tech innovation.
Dubai International Financial Centre (DIFC)
DIFC is a key supporter of the fintech ecosystem of the UAE. The hub gives startups access to a bunch of investors, mentors, and industry experts, as well as top-notch facilities and resources.

Gaming

Dubai is quickly become a gaming hub for the UAE, with lots of benefits for businesses that set up here. The Dubai government is all about supporting the gaming industry and making it grow. They've got a bunch of initiatives going on, like tax breaks, easier visa processes, and funding help, to attract and keep gaming companies in Dubai.
Here are some initiatives in this area across the UAE that may be of interest to you:
Abu Dhabi Gaming (AD Gaming)
It's a collaborative effort aimed at creating a thriving gaming and eSports scene in Abu Dhabi. We're bringing together government, business, and academic leaders to support local game developers, attract international investors, and make Abu Dhabi a global hub for gamers and eSports enthusiasts.
AD Gaming offers partnerships with some of the biggest gaming companies in the world, as well as career opportunities, internship programs, and training courses in collaboration with Unity Technologies.
Dubai Program for Gaming 2033 (DPG 2033)
The Dubai Gaming Program 2033 is a big deal that the government of Dubai is launching to make the Emirates a global powerhouse in the gaming scene. The Program will have a huge impact on the city's economy. It's estimated that by 2033, the gaming industry will contribute $1 billion to Dubai's Gross Domestic Product (GDP) and create 30,000 thousand jobs.
Dubai Gaming Visa
The Dubai Gaming Visa is a cool long-term residence permit that allows skilled gamers to live and work in Dubai. This is part of Dubai's plan to become a top global gaming hub by 2033.
To apply for this visa, you need to be at least 25, have a gaming-related resume, and have a Creative and Talented Accreditation Certificate.
To apply for this or any other visa is easy with us. You just need to drop a message 😉

Crypto

Dubai is looking to cut down on the crypto labor market, and there are great business opportunities to be had in this area. They have taken a pretty progressive approach to crypto regulation. The Dubai government has also established a clear and detailed system that gives companies the certainty they need to do business.
Dubai Blockchain Strategy This ambitious strategy, launched in 2016 by Sheikh Hamdan, aims to turn Dubai into a global blockchain hub and make the first blockchain-powered government. It's all about using blockchain in different sectors like government services, trade finance, and healthcare.
Virtual Assets Regulatory Authority (VARA) VARA was founded in 2020 and is a regulatory body that oversees the crypto industry in Dubai. They provide a clear framework for crypto business, custodians and other businesses to operate in, helping to promote responsible innovation in this area.
Abu Dhabi Global Market (ADGM) Digital Assets Framework ADGM, the international financial center in Abu Dhabi, has established a solid framework for digital assets. It provides a legal and regulatory framework for companies dealing in cryptos and other digital assets.
Dubai Future Accelerators This program from the Dubai Future Foundation brings together government agencies and startups to create innovative solutions in various fields, such as blockchain and crypto. It's all about collaboration and experimentation to drive the future of these technologies in the UAE.
RAK Digital Assets Oasis (RAK DAO) Free Zone
RAK DAO is the first free zone in the world, especially for businesses that operate in the virtual asset and Web3 spaces. It was founded in 2021 by the government of Ras Al Khaimah. Its goal is to create a thriving ecosystem for innovative companies that use blockchain technology.

Artificial Intelligence (AI)

The government of Dubai is all about promoting an AI-driven economy. They have some great initiatives, like the Dubai AI Strategy 2021 and the Future Accelerators program. Providing funding, infrastructure, and regulatory support for AI companies.
National Artificial Intelligence Strategy 2031
In April 2019, the government of the UAE, led by Sheikh Mohammed bin Rashid Al Maktoum, unveiled the National AI Strategy 2031. The goal is to make the UAE the global leader in AI by 2031. It has some strategic objectives:
  • Enhance the UAE's reputation as an AI hub: attract top global AI experts and companies and turn the UAE into a hub for AI innovation and research.
  • Boosting the UAE's competitiveness in priority sectors through the use of AI: healthcare, education, government, economy, etc.
  • Create an AI-friendly ecosystem: invest in AI research and development, build AI-supporting infrastructure, and train a skilled workforce in AI.
  • And some more
The Advanced Technology Research Council (ATRC)
The Advanced Technology Research Council (ATRC) is an Abu Dhabi government entity responsible for shaping Abu Dhabi and the UAE's research and development (R&D) in technology.
ATRC was established in May 2020 by His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE. ATRC's $500 million initiative, announced at the World Government Summit, aims to speed up AI research and development. It includes the Falcon Fund, a $300 million non-profit that's dedicated to improving open-source AI models.
Some of ATRC's recent initiatives:
  • Launching a global tech R&D hub: This platform aims to bring together researchers, scientists, and businesses from all over the world to tackle global issues with cutting-edge technologies..
  • Announcing a $200 million fund for R&D in developing countries: this is to support the creation of technologies that can solve some of the UAE's biggest problems.
  • Establishing a new AI research center: This center will focus on the study and development of new AI technologies.
If you're thinking about starting a business in some of these areas or need visas or whatever for company registration, we can help. We've helped over 100 businesses move to the UAE already, and we'll help you too! Let's talk and figure out how to make it happen.

Unicorn's Valley

Dubai is now home to some serious unicorn startups — companies with a market valuation of more than $1 billion. Here are a few of them:
  • Careem: Ride-hailing and food delivery service based in the Middle East and North Africa, founded in 2012. In 2019, it became the first unicorn in the region. In 2020, Uber bought Careem for $3.1 billion.
  • Swvl: Bus company that operates in a few countries in the Middle East and North Africa, founded in 2016 and went public in 2021. SWVLs use technology to optimize routes and schedules. They are better, more affordable, and more convenient than regular buses.
  • Noon: Online e-commerce platform based in the Middle East that was founded in 2017 and went public in 2019, Noon offers a ton of products like electronics, clothes, home goods, and more. They also have their own delivery service.
  • Kiwa: Micro-lending platform that helps people lend money to entrepreneurs in developing countries. It was founded in 2005 and took off in 2011 when it became a unicorn. Kiwa has given out over $1 billion in loans to more than 3 million people in 80 different countries.
  • Mamoon: AI platform that helps businesses streamline customer service. It was started in 2019 and became unicorn in 2021. Mamoon uses AI chatbots to answer customer queries, solve problems, and give support.

Ready to get started? Getting a residency visa for entrepreneurs is very easy

The UAE government has been making some big changes to make it easier for startup founders. They've changed the bankruptcy laws, introduced new startup licenses, and made visa regulations more flexible.
For instance, there are a lot of different visa options available for entrepreneurs now:
  • Freelancer Visa
  • Gold visa
  • Investor Visa and more
We have created a detailed overview of all the documents that will help you enter, live, and work in the UAE. See it here.
If you need any assistance with visas, paperwork, or anything else for your business setup, just fill out this form. We'll get in touch and make the process as smooth as possible for you.

Free zones and tax incentives very comfortable for starting a business

Dubai's free zones have all the perks for an easy business start in all areas:
  • 100% ownership for foreigners
  • 0% corporate tax rate
  • Super easy business setup, etc.
In other cases, the corporate tax of 9% is pretty reasonable when compared to other countries. In this article, we've covered everything about corporate taxes — here you can find some details that you might want to know.
Also, thanks to corporate tax cuts and other new laws, the UAE has been taken off the list of risky countries for illegal financial flows by a global watchdog. This has made investors feel more confident about the country, and it's probably going to have a positive impact on your business.

Regional support and collaboration

While Dubai leads the way, other emirates in the UAE are also investing heavily in their startup ecosystems. Abu Dhabi, Sharjah, and Ras Al Khaimah are home to a number of entrepreneurial support organizations and initiatives.
This gives you the chance to meet and network with a lot of successful entrepreneurs from all over the region and world. However, it can be tough for a newbie to find events where they can meet potential partners or investors. To help with that, we've compiled a list of all the big industrial events in the UAE in one place. There are tons of events in Dubai, and other places too. This list should help you expand your network and make some useful connections.
Also, you can check out this list of business communities in the UAE. Both articles are regular updates, so you'll get up-to-date information right in your inbox.
Do you think your startup might become a unicorn, too? Why not? Dubai has a lot of opportunities for growing your business. Just take that first step and see where it takes you.
First up, you'll need to register your business in Dubai. We've helped tons of businesses do that already. Just give us a call and we can walk you through it. We'll answer all your questions, so you know exactly what to do to get your business off the ground in the UAE.
2024-07-12 10:19