Dubai is a metropolis on the upward thrust. The first nine months of 2023 noticed its Faulty Home Product (GDP) prolong by 3.3%, while in the identical interval, its knowledge and communications sector shot up by 4.4%. Alongside its prolonged economic success, the metropolis has furthermore turn into a haven for startups and the tech sector on the total.
A immense piece of this has been the country’s dedication to stoking industry, one thing many feel Europe hasn’t wrathful by in the identical means. While the continent aloof has a stable global presence with a orderly market and a highly expert personnel, many bitch about the value of doing industry and its array of strict rules.
For European startups having a be taught about to enlarge and grow, this may per chance per chance well presumably neutral be off placing. Thankfully, there are more choices now than ever for companies on this situation — and indubitably this kind of is Dubai and the UAE.
“We’re seeing increasingly founders and startups be taught about at the Center East as a credible replace for growth,” says Peter Brady, assistant vice president of Dubai World Trade Centre.
He posits there are multiple causes for this, however indubitably one of many glorious is how Dubai acts as a geographical hotspot for global expansion. “Dubai’s a hub,” Brady says, “we comprise entry to one thing like four billion other folks within a four hour flight.”
This intention companies can no longer handiest work and enlarge within the Gulf Cooperation Council (GCC), however furthermore the global south as a total.
Right here is great from the handiest rationalization for European startups to withhold in mind expanding into the UAE though. Mohammad Ali Rashed Lootah, the president and CEO of Dubai Chambers, says that Dubai has ambitious plans for the future that may per chance per chance well straight earnings companies from a diversity of sectors.
In our conversation, Rashed Lootah raised the Dubai Financial Agenda (D33), an “ambitious roadmap [that] seeks to double the dimensions of the emirate’s economy over the upcoming decade and situation Dubai amongst the tip three global cities.”
The piece that’s in particular engrossing for European startups is that a core tenant of this draw is a spotlight on, and investment in, future-gazing applied sciences, equivalent to “artificial intelligence, perfect metropolis choices, and fintech.”
This isn’t the handiest initiative on this vein either. The originate of the UAE Inexperienced Agenda 2030 and Web Zero by 2050 systems imply there are expansive opportunities for companies working in the sustainability sectors too.
European startups in any of these sectors will comprise entry to financing, networking, and astronomical market opportunities that may per chance per chance well presumably again drive their industry to the following level.
While this expansion into the UAE will likely be resource intensive, there are diversified advantages that salvage this creep comparatively seamless.
How European startups can land softly in Dubai
“Dubai offers a industry-pleasant regulatory ambiance,” Rashed Lootah tells TNW. “The emirate’s a few free zones, which are tailored to the desires of inform industries, provide essential tax advantages, streamlined rules, and entry to specialised infrastructure.”
The industry-pleasant laws of the dwelling is a controversy Brady brings up too. “The federal government right here is a if truth be told active supporter of entrepreneurship investment and developing an ambiance whereby startups can thrive.”
It does this thru inform investments and initiatives — a pair of of which we’ve already talked about — then all over again it furthermore has a definite means to laws too. One example Brady substances to is the “world first” Virtual Sources Regulatory Authority. This body oversees the provision, use, and substitute of digital sources, guaranteeing that crypto and blockchain companies comprise a stable regulatory ambiance whereby to work from.
When compared with Europe, Dubai has decrease taxes, less advanced rules, and a government that’s investing very closely in industry. It would vastly decrease the inform for European startups touchdown in Dubai, as a pair of of the prices and outlay will likely be decrease in the space than diversified aspects of the arena.
But let’s inform right here’s all sounding like an glorious idea and that involving to the UAE is one thing your startup is severely brooding about, what then? How manufacture you recognize your industry is in the moral situation to creep?
At what stage of growth need to aloof startups assume about involving?
On this, Rashed Lootah became unequivocal, encouraging startups “to withhold in mind expanding into the UAE and Dubai at any stage of their growth fling.”
However, some startups will likely be in the next situation to thrive than others. “Companies that comprise done immense success [in Dubai] are these that comprise demonstrated a scalable industry mannequin and a level of success of their dwelling market,” says Rashed Lootah.
This viewpoint is supported by Brady, who states that companies with pre-Series A, Series A, or Series B funding are in general in a immense situation to salvage the creep to Dubai. “These are these that appear to be having the most traction and success when they’re having a be taught about at the UAE as a market to scale,” he says.
The principle components both Brady and Rashed Lootah knowing in European startups thriving in Dubai are these that comprise a stable foundation and a versatile structure. In diversified phrases, the companies that manufacture handiest comprise already had some success and are draw up in a mode to tackle undergoing substitute.
As Rashed Lootah places it, startups must be previous enough to “comprise a high level of adaptability, and be definite their choices are tailored to meet the regulatory and market necessities of the space.”
Thankfully, referring to the latter half of of that commentary, there are lots of initiatives that’ll salvage the transition to a sure piece of the arena more handy.
Making the creep to the UAE more uncomplicated
There are a gamut of schemes geared to again European startups adapt to life in the United Arab Emirates. One such example is the Commercial in Dubai platform, which offers handy toughen to companies, as well to matchmaking companies and products that may per chance per chance well connect them with companions.
There are furthermore a unfold of events that may per chance per chance well again companies no longer handiest put together for doing industry in the space, however can provide a launchpad for growth too.
As an illustration, Invent bigger North Indispensable particular person, hosted by Dubai Chamber of Digital Financial system, is the arena’s largest gathering for startups and investors. In 2023, the occasion became visited by over 33,000 attendees, and furthermore had over 1,600 startups and 1,000 investors inform. This one year’s version is expected to top that with 70,000 attendees, 1,800 startups and 1,200 investors flocking to the Emirate for the occasion from 13-16 of October.
“Events shield a extreme role in helping founders and startups grow,” Brady says, “no longer least by connecting them to capital, however furthermore by connecting them to potentialities.”
If a startup is in the moral space, the combo of handy toughen and a thriving occasion culture can again them land on their feet and originate thriving in Dubai practically directly.
Opening an workplace? Or transferring headquarters?
At this stage, if a European startup has determined to grow by involving to the UAE, there’s one other query to answer to: need to aloof they originate an workplace, or creep their total headquarters to the space?
Rashed Lootah says that opening an workplace in Dubai capabilities as a “strategic stepping stone,” permitting companies to envision the waters and “set a foothold in the market.”
Entertaining their headquarters to the UAE, though, can “free up an excellent wider fluctuate of advantages” — equivalent to stout entry to Dubai’s abilities pool — and “potentially more favourable tax structures.” But, it’s essential to inform that doing so would require more essential investment and a deep belief of the local industry ambiance.
For most startups, the handiest route is opening an workplace first, exploring the market, and, if things creep successfully, be taught about to creep headquarters later.
In the slay, there are expansive advantages for European startups having a be taught about against the UAE. If these companies need to enlarge, staunch more investment, and grow into the global south, then Dubai is an glorious location to manufacture so from.
