Being an entrepreneur in the UAE is a great idea nowadays, but taking the first step could be complicated for many. This is an important choice that can change your life. However, before you decide to follow this path, you have to know some things about the life of an entrepreneur in this region.
In this article, you will discover new information that will help you become an entrepreneur in the UAE. Keep in mind that this country has a growing economy that can give you the support you need. Residents have the opportunity to start their projects and move forward in a competitive market.
1. What is an entrepreneur?
Entrepreneurs can start a profitable business to generate more income for themselves. Some of them specialize in creating new services or products to increase the number of available projects in the market.
1.1 Some types of entrepreneurs
Several types of entrepreneurs are commonly referred to:
- Corporate or business entrepreneurs: Those who risk raising a young and innovative company (known as a startup) from their passions.
- Digital entrepreneurs: Those who use the web and new technologies for their ventures, emphasizing the possibilities of these new tools.
- Social entrepreneurs: Those who focus on the creation of other types of associations and organizations that are not necessarily commercial
1.2 What characterizes an entrepreneur?
Although each entrepreneur in the UAE has a unique set of characteristics and personalities, most people think that they should have some of these common traits:
An entrepreneur has to transform himself into something bigger than a simple business person. That person has to be inspired by a personal goal capable of changing the reality of most people. Self-confidence is an essential asset to achieving this goal.
Since this is a niche with many uncertainties and doubts along the way, an entrepreneur must have enough self-confidence to deal with those obstacles. Besides, they also need to know how to create quick solutions when trouble arises.
An entrepreneur in the UAE is someone that inspires people; it is not a simple boss. He has to be an example for all the team members when they are on their path of self-discovering. This is essential to create a bond between workers.
1.3 How does entrepreneurship impact the economy of a country?
When we speak about entrepreneurship, we talk about the process of designing, launching, and running a business. Nowadays, these are essential factors to accelerate economic development. Here are some ways in which entrepreneurs create an impact on finances:
- They create new jobs
- Also, they create new products/services
- Entrepreneurs generate revenue for the government
2. Why is the UAE a great place for entrepreneurs?
The United Arab Emirates is the perfect option for those who have a specific goal because it has unique opportunities and many tools to start a business. The country is open to new ideas. It is where some of the most significant companies create new job opportunities.
This destination is also an excellent place for business owners because it has a low tax rate, a fantastic benefit for those who want to keep more profits. Besides, it has natural resources like oil, gas, and water, which are essential to guarantee the quality of life for most citizens.
2.1 New visa system
A recent law in the UAE allows foreigners to obtain an extended residency once they retire. If you have an online business, you can receive many benefits thanks to this. For example, it can be an incentive for older entrepreneurs who want to continue living here without worrying about legal issues.
2.2 100% foreign ownership
Most people in the Middle East know that the UAE is a famous destination for entrepreneurs who want to create a project from scratch. However, if you are new, it can be challenging to know the location that can meet your needs. That is why the government has changed the laws related to foreign ownership. Nowadays, you can have 100% foreign ownership.
This law will make things easier for those who want to become an entrepreneur in the UAE, as they do not have to worry about the legal complexities related to buying a property or obtaining an employment visa. Besides, this also means that they can divide shares into local companies and create new job opportunities with foreign investors.
2.3 Growing economy
The economy of the UAE is growing at an exponential phase. Since the government started to take action to depend less on the exportation of oil, the country’s GDP has reached new levels.
You also need to consider that the UAE has a significant population, which is an essential factor to consider when you try to understand the country’s economic power. Besides, the government has also invested in infrastructures to improve the global perception of the Emirates.
2.4 Opportunities for Women
Female entrepreneurs can find a dedicated space in the UAE thanks to the number of opportunities available. This place is established as an authority for business partnerships, commerce, and tourism. Thanks to local diversity, women who want to create a business start seeing results.
3. How to become an entrepreneur in the UAE?
There is no specific way to become an entrepreneur in the UAE, but many people start by creating their own digital business in Dubai. Some beginners think they need a lot of connections and money to start, but that is not always the case.
As long as you prepare yourself for the difficulties you will find, you can become a successful entrepreneur. The process can be more straightforward with the help of a legal team that can help you with your doubts.
4. What do you need to know when you create your business in the UAE?
Before you give the first step to creating a company in the UAE, you have to know some basic facts about the country. Here are some of the most important:
4.1 Select your business activity
When you are thinking about offering a service in the United Arab Emirates, one of the first things you have to know is that there are certain limitations. You may need to receive many approvals from different entities before starting your project. To make sure your company can fulfil those requirements, make sure to investigate the regulations of each zone.
4.2 Choose the right jurisdiction
Once you have followed the previous advice, you are ready to identify the proper jurisdiction for your project. This is the best action you can take to avoid legal issues.
For example, Dubai offers many benefits for business setups and offshore businesses. Besides, the city also offers startup packages and Free Zone company formation, which are helpful for people who are just starting to create an organization in the United Arab Emirates.
4.3 Look for a partner investor
The UAE is a popular destination for business owners who want a high return on their investment. If you are looking for an investor for your project, you can reach out to your network and ask for referrals. This will be useful to receive suggestions from people who already know the industry works.
You can also speak with government-sponsored entities that help startups. However, you must be a UAE citizen to receive funding. Besides, those companies only trust projects with a solid business model.
4.4 Register your trade name
Trade names are part of the legal requirements you have to fulfill. To register the name of your business, you have to go to the Department of Economic Development (DED) This applies even if you are a sole trader. In the same way, you have to make sure that your company’s rights are exclusive to you.
4.5 Obtain externals approvals
Entrepreneurs need to obtain external approvals before creating their projects. Part of this process includes getting all the necessary permits and licenses from the different departments of the government.
At the same time, entrepreneurs have to be informed about how each process works. This will help them avoid potential troubles in the future.
4.6 Rent a place
If you do not have enough funds to buy a place, you can always rent one. Many businesses are available around the United Arab Emirates, but each has a different price. You need to check your budget before making a final choice.
4.7 Collect all the business documents
The DED will give you a trade license number with a payment voucher once you submit the required documents. Once you finish that process, you will have your business license. This means you comply with all the regulations stipulated by the government.
5. Why should you have your own business?
You should start your business if you want to have complete control over your income and time. There are many opportunities nowadays, thanks to the development of the digital age. You can start your website or work as a freelancer.
In today’s world, it is impossible to talk about job security. That is why you need to have your project to protect your freedom.
6. How can you select the right business for you?
There are many business opportunities available; each requires a different set of skills and budget. If you are thinking about creating one, this is the perfect moment to take action. Today’s economy offers many financing options for those who know how to take advantage of the situation.
It is difficult to know what is the best place to start your organization. Many options can be scary once you get there for the first time. But by taking the time to think carefully about your goals and preferences, you can identify the best option for you.
7. What are the benefits of starting your dream business?
There are many benefits of starting your own business as an entrepreneur in the UAE. Just to put an example, you can impact society while you increase the amount of money you make.
If you are considering starting your business, there are some things to keep in mind before taking that leap.
- Do you have a unique selling proposition?
- What can you offer to potential customers?
- How do you market your product?
- How do you grow from a small business to a larger one?
- What is the best way to get started with this venture?
8. Is the cost of living important when you want to be an entrepreneur?
The cost of living is an essential factor to consider when you want to be an entrepreneur in the UAE. However, it is not the only one. You also need to think about the location, industry, and what kind of things you want to achieve with this project.
9. Should you have your own office in the UAE?
The way to answer these questions depends on your personal goals and circumstances. For some, having an office is exhausting, which is why they prefer to create a digital business.
On the other hand, if you are a fan of human interactions and day-to-day activities, an office could provide you with the communication and connections you need to feel complete. Either way, it’s necessary to think about what kind of boss you want to be.
Would you like to know more about being a successful entrepreneur in the UAE? Our experts are here to help you. You can call us at +971 43 316 688 or email us at email@example.com. You can do it today!