The emirate is emerging as a leading commercial hub as HNWIs, investors plan business migration to the city
Business groups and economic consultancies in Dubai have noticed an increase in applications from investors wishing to expand their business or set up their business in the emirate following the visa and business reforms introduced by government this year, experts say.
Business consultants and industry players said Dubai has emerged as a leading business hub globally, with the emirate not only aligning its economic policies with the best international standards, but also offering numerous incentives to investors and businessmen. They have high hopes that the majority of these double-digit increases in inquiries will be converted into business licenses as investors trust in the resilience of Dubai’s economy throughout the Covid-19 pandemic.
“The government has massively attracted the attention of foreign investors looking to invest in the country. We have surely seen an increase in applications for investor visas after the announcement of these new reforms. Most of these calls came from investors based outside the UAE, seeking to set up their business in the UAE, which is a good sign that the reforms are working,” said Hatem Elsafty, Managing Director of Business Link, to the Khaleej Times on Sunday. .
The Business Registration and Licensing (BRL) sector of the Department of Economy and Tourism (DET) saw a 58% year-on-year growth in new business licenses to reach 24,662 in the first quarter of 2022, investors and businesses trusting Dubai’s growth potential. across various sectors. It also saw a 6% year-over-year increase in the e-commerce license, another business license popular among investors, in 2021 as the department helped freelancers, entrepreneurs and startups conduct business activities online and on social media accounts.
Pratik Rawal, managing partner of Ascent Partners, said shorter fixed-term contracts for private sector employees and other options for flexible working hours, including job-sharing, have given employers the opportunity to hire the talent they need.
“Since the implementation of the new law, there has been a significant increase in the number of companies seeking to set up a branch in Dubai and register their business with Dubai Economy and Tourism (DET),” Rawal told the Khaleej Times.
Fadi Rizkallah, managing director of Freedom2Work.com, said the visa and labor reform has sparked interest among different nationalities and categories of people.
“As the UAE and Dubai have been a hotspot for entrepreneurs around the world, news about the new visa reform has generated many inquiries, interest is high as well as demand, people are eager to move here and the new reform has created different opportunities to do so,” Rizkallah told the Khaleej Times on Sunday.
HNWIs and entrepreneurs eye Dubai
With the steady increase in the number of High Net Worth Individuals (HNWIs) moving to Dubai, Rawal said there is a growing need for HNWI families to set up individual or multiple family offices.
“A few jurisdictions that have given a promising framework for HNWI are DIFC and DWTCA and are establishing holding companies in UAE-based free zones to manage their wealth and investments in the region. Investment opportunities for single-family or multi-family offices, from real estate to startups in Dubai, offer promising prospects for every startup to scale and develop business expansion plans in the UAE,” he said. -he declares.
Rizkallah said there is an expected growth in the business setup as more and more HNWIs bringing in their businesses as well as contractors of different sizes as Dubai in recent years has been one of the main hubs business in the world.
“Exponential growth is happening right now which will put Dubai at the top of the business hubs as we have seen recently the change and migration of businesses that is happening from many different countries to the UAE,” said he declared.
Elsafty said Dubai has been successful in attracting investors, entrepreneurs and business people in the past and will continue to do so in the future.
“For a very long time, we have seen Dubai and its business environment constantly growing. The city has given a platform to several companies which in due course have taken their operations internationally. Given the rapidity with which each sector is progressing and the influx of HNWIs and entrepreneurs, the government will implement many new changes that will support the growth of the economy and attract more foreign investors,” he said.
Rawal of Ascent Partners said the UAE has implemented various reforms for people to start their entrepreneurial journey; every startup initially requires a setup that can be the most cost-effective possible to test their concept and get the guidance and support that can enable startups to launch their business.
“A free zone that focuses solely on starting an incubation center serving various sectors and segments will attract more talent and concepts and nurture startups,” he said.
Elsafty said new businesses have many of the same challenges that several companies have faced before in terms of starting and establishing.
“The first is the difficulty in finding a reliable local sponsor. Here, companies struggle to find local sponsors who have adequate knowledge of the market, laws and how these operations are conducted.
“Another challenge that new businesses face is the unavailability of funds. Approvals, licenses, office rentals and more can often feel overwhelming. A lesser known fact, however, is that the UAE offers various funds and incubation programs aimed at giving new businesses a boost,” he said.
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Rizkallah said that with many new businesses coming to Dubai, few major challenges are inevitable for newcomers.
“As a first step in managing the most critical start-up costs; as some companies, even if well established elsewhere, may struggle to establish themselves properly at the same size. Sometimes it’s best to start small by sending a reputable representation on a smaller scale to properly research the market, make the connections and lay the groundwork for the business before the big move,” he said.
Business opening; businesses need to be very careful with rules and regulations as well as people looking to make a quick buck with newcomers, seeking help from a trustworthy business start-up consultancy could help them get on the right track to avoid missteps and invest properly in their business, he said.
“Another major challenge is to be known on the market and to perform well. While people come from different parts of the world with different mindsets, it is very crucial and important to understand the aspects of business and how it is conducted in Dubai. Even though there is a lot of multiculturalism, Dubai has its own opinions and its own entrepreneurial spirit which must be respected and followed in order to achieve the desired success,” Rizkallah said.