As per Khaleej Times, supported by proactive government initiatives and a thriving start-up ecosystem, the UAE emerges as one of the most favored global hubs for entrepreneurs to establish businesses in 2024, according to new research.
The study conducted by Business Name Generator positions the UAE in third place, following Hungary and the Netherlands, out of 52 nations analyzed. It confirms that the second-largest Arab economy provides advantageous conditions for new companies.
Legal establishment of a business in the UAE takes only four days, owing to its business-friendly regulatory environment. Additionally, the country offers a reasonable cost of living ($983.62 without rent). Another notable aspect of the UAE is its highly competitive nine percent corporate tax regime, the second-lowest figure in the study.
Other factors such as VAT, WiFi speeds, GDP growth predictions, and happiness scores were also evaluated to ascertain the optimal locations for launching a start-up.
According to experts in the start-up domain, the latest ranking further solidifies the UAE’s standing as a hub for start-ups, providing an environment conducive to innovation and expansion. As a leader in the global start-up landscape, the UAE offers a potent combination of economic dynamism, favorable regulatory frameworks, and quality of life. An expert remarked, “As entrepreneurs embark on their journey towards success, the UAE emerges as a beacon of opportunity, poised to fuel innovation and growth on a significant scale.”, reported by Khaleej Times.
“Entrepreneurs face many important decisions when launching or expanding their business, and choosing the right location is one of the most crucial,” stated Linus Näslund, COO for Business Name Generator, as stated by Khaleej Times. “The location of a business can have a significant impact on its success, affecting access to resources, market demand, and competition.”
As per the same source, the UAE ranked reasonably for happiness, scoring 6.6 out of 10, indicating positive lifestyle benefits for entrepreneurs based there.
Finland secured the top spot as the happiest country for entrepreneurs, while India was noted for its affordable living costs. The research highlighted the Philippines, Italy, and Brazil as the most challenging locations to launch a start-up, primarily due to high taxes and bureaucracy.
“Entrepreneurs must carefully consider the economic, demographic, and cultural factors of potential locations,” emphasized Naslund. “They must also evaluate the legal and regulatory environment, including taxes, labor laws, and zoning regulations, and how these will impact their operations. Ultimately, the decision of where to launch can be a make-or-break factor for success, therefore, it is vital for entrepreneurs to weigh up all relevant facets.”
Paired with a projected GDP growth of four percent in 2024 and a robust GDP per capita of $47,663, the nation presents a compelling case for start-ups seeking to thrive amid a favorable economic landscape, as stated in the report.
Highlighted by Khaleej Times, Abdulla Bin Touq Al Marri, UAE’s Minister of Economy, emphasized that the development of start-ups will play a critical role in bolstering the nation’s economy and significantly contributing to achieving its target of doubling the GDP by 2031.
Riding on a thriving entrepreneurial ecosystem, the UAE, which ranks second in the Middle East region and 28th globally in the Global Start-up Ecosystem Index, has led the Mena fundraising in January amid a VC winter, according to data provided by Lucidity Insights.
As per the index, in 2023, the UAE held the second position in the Middle Eastern region and 28th worldwide. In 2024, tech start-ups in the UAE are expected to experience a more conducive ecosystem with an anticipated surge in funding, thanks to the country’s booming venture capital market, projected to reach $1.1 billion.
Tecom Group’s incubator in5 reported that funding raised by its start-ups since inception increased by 25 percent in 2023 as Dubai continued to nurture homegrown innovation. The surge in funding, totaling Dh3 billion last year, indicates growing interest in Dubai’s homegrown enterprises, fueled by government strategies to enhance the city’s position as a global innovation capital conducive to high-potential enterprises. “It is a testament to Dubai’s entrepreneurial credentials and robust investor confidence in the city’s pro-business environment,” stated Tecom Group.
Hub71, Abu Dhabi’s global tech ecosystem, has onboarded over 190 start-ups that collectively raised Dh5.4 billion in venture capital since its launch five years ago to accelerate entrepreneurship in the emirate. Building on the 22 percent increase in fundraising performance year-on-year, Hub71’s start-up community has created over 1,100 jobs in Abu Dhabi and generated Dh3.5 billion in revenue, signing 118 corporate deals in the past two years valued at Dh658 million. Today, Hub71 start-ups operate in 22 sectors led by over 320 founders from 54 nationalities who have established operations in Abu Dhabi to pursue further business growth and scale internationally.
Source: https://www.khaleejtimes.com/business/uae-is-third-top-global-hub-to-launch-business-in-2024
