The government’s changes regarding visas and business have caused an increase in inquiries to Dubai’s business organizations and economic consultancies.
Nowadays, Dubai has emerged as one of the most crucial commercial hubs since the emirate not only corresponds to the best international standards but also offers several incentives for investors and businesses.
They have great expectations that the majority of the double-digit surge in inquiries will be translated into company licenses, as investors have faith in the Dubai economy’s durability throughout the Covid-19 pandemic.
“The government has attracted various international investors seeking to invest in the country. Following the announcement of these new regulations, we’ve seen an increase in inquiries about investor visas. The majority of the calls have been from foreign investors wishing to establish firms in the UAE, which is a good indicator that the changes are working”, according to Hatem Elsafty, managing director of Business Link, who spoke to Khaleej Times on Sunday.
The Department of Economy and Tourism’s (DET) Company Registration and Licensing (BRL) sector saw a 58 percent yearly increase in new business licenses to 24,662 in the first quarter of 2022, as investors and businesses put their faith in Dubai’s development potential across diverse industries.
In 2021, the department also saw a 6% year-over-year growth in the e-trader license, another popular business license among investors, which agency made it easier for freelancers, entrepreneurs, and startups to perform business operations online through social media accounts.
Recruiting Top Talent
Shorter, fixed-term contracts for private-sector employees and other flexible working hours choices, such as shared tasks, according to Pratik Rawal, managing partner of Ascent Partners, have provided firms the freedom to attract the talent they require.
“There has been a considerable surge in firms wishing to branch out in Dubai and register their business with Dubai Economy and Tourism (DET) since the new law was implemented,” Rawal told Khaleej Times.
The visa and labor reform have aroused interest among many nationalities and categories of workers, according to Fadi Rizkallah, general manager of Freedom2Work.com.
“Because the UAE and Dubai have been a point of interest for entrepreneurs around the world, the news about the new visa reform sparked a lot of interest and demand,” Rizkallah told Khaleej Times on Sunday. “People are eager to move here, and the new reform has created different opportunities for them.”
Dubai Attracts HNWI Entrepreneurs
With the influx of high-net-worth people (HNWIs) to Dubai, Rawal believes there is a rising demand for HNWI families to establish single or many family offices.
“DIFC and DWTCA are two jurisdictions that have provided a potential framework for HNWIs to manage their money and investments in the area by forming holding companies within UAE-based free zones.”
The investment options in Dubai, from real estate to startups, provide good chances for every firm to develop and strategize business expansion plans in the UAE,” he stated.
According to Rizkallah, the business setting continues to develop as more HNWIs and entrepreneurs of various sizes relocate to Dubai, which has become one of the world’s top business centers in recent years.
“An exponential boom is taking place right now that will position Dubai at the top of business centers,” he added, citing the recent shift and company migration from several nations to the UAE. According to Elsafty, Dubai has attracted investors, entrepreneurs, and businesses for years and will continue to do so in the future.
“We have seen Dubai and its business climate steadily improve for a long time. The city has provided a platform for several firms, which have now expanded their activities to an international level. In light of how swiftly each industry is developing and the flood of HNWIs and entrepreneurs, the government will enact a slew of new policies to help the economy thrive and attract more foreign investment”, he added.
There are still obstacles to overcome
According to Rawal of Ascent Partners, the UAE has enacted several changes to assist individuals in beginning their entrepreneurial journeys. Startups need a cheap setup to evaluate their ideas and acquire the necessary resources.
“A free zone that focuses only on establishing an incubation center that caters to multiple sectors and segments will attract more talent and concepts, as well as foster entrepreneurs,” he added.
According to Elsafty, new firms face many of the same obstacles that other businesses have had in terms of beginning up and establishing themselves.
“The first issue is the difficulty of locating a trustworthy local sponsor. Local sponsors with a sufficient understanding of the market, rules, and how these activities work are hard to come by. Another issue that young firms confront is a lack of funding.
Approvals, licenses, office rentals, and other expenses may add up quickly. However, a lesser-known reality is that the UAE offers a variety of financing and incubator programs focused on helping new enterprises get off the ground,” he added.
With so many new enterprises coming to Dubai, Rizkallah believes the entrants will face a few significant hurdles.
“Managing startup expenses is the first and most important step; some businesses, no matter how well established elsewhere, might find it difficult to establish themselves in a new market. Before making a huge move, it’s often advisable to start small by sending trustworthy representatives on a smaller scale, create contacts, and lay the basis of the organization,” he added.
According to him, companies must be cautious of the rules and regulations and those attempting to make a quick buck off newbies. Getting guidance from a trustworthy company setup company might help them get started and invest appropriately in their business.
“Being known in the market and doing business is another huge issue. While individuals come from all over the world and have different mentalities, it is critical to grasp the many components of business and how it operates in Dubai. Despite its multiculturalism, Dubai has its viewpoints and business mindset, which must be acknowledged and obeyed if the desired success is to be achieved,” Rizkallah stated.
Source: Khaleej Times
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