Welcome to DhanGuard. Can I help you?
/ Blogs / Business Setup Consultancy / Is Gulf Region Becoming A Startup Haven

Is Gulf Region Becoming a Startup Haven?

By Shivangi - 27 Dec 2021 Last Updated: 07 May 2022
Is Gulf Region Becoming a Startup Haven?

Table of Contents 

  1. 1. Location's Benefit
  2. 2. Diversity of Work
  3. 3. The Legal and Tax Framework
  4. 4. Numerous Advantages of Setting up Business in Gulf Region
  5. 5. Conclusion

Because of its strategic location, the Gulf Region has evolved into an ideal setting for human progress over time. Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates are all part of the Gulf region. The business climate in the Gulf Region is the greatest in the world.

The Gulf people have a strong entrepreneurial spirit. The startup scene in the Gulf region is exploding. The majority of startups and large corporations have chosen Dubai as their headquarters. An entrepreneur's desire might become a reality by establishing a company in Dubai. This is due to the fact that Dubai is the region's business capital.

The UAE government is concentrating its efforts on assisting entrepreneurs in establishing new businesses in the country. The government invites international investors to help the country's economy grow. Startups in the Gulf region are gaining attraction as the number of investors continues to rise.

Location's Benefit

The Gulf Region has access to Asian, European, Middle Eastern, and African markets. And the markets are evolving at a rapid pace. As a result, the Gulf Region is an excellent place to establish a business.

In terms of business parks, transportation, offices, buildings, and other facilities, Dubai offers a world-class infrastructure. Dubai has a technology park with excellent support packages for startups. Dubai boasts world-class transit as well. This is what draws individuals to Dubai for Company Formation.

Even Bahrain's modest population of 1.5 million people cannot prevent the country from becoming a test ground for a variety of companies.

Diversity of Work

There are many different types of businesses.

For Example: -

  • Analytics
  • Cleantech
  • E-commerce
  • Virtual reality
  • Artificial intelligence
  • Finance
  • Augmented reality

These all are examples of emerging technologies. Internet of things, gaming, robotics, event management, media, art, smart cities, travel, tourism, and other topics pique the interest of entrepreneurs.

A lot of businesses are focused on e-commerce, while others are interested in logistics and creative company ideas as well. In these areas, education and healthcare are taken very seriously. Freelancing allows you to start a business at a low cost.

The Legal and Tax Framework

The number of companies forming in the UAE is growing as a result of the country's low taxes, making it a logical choice for entrepreneurs. Investors and entrepreneurs are drawn to the Freezone economy.

  • The term "free zone" refers to an area where commodities are not subject to import duties.
  • The UAE government exempts the Free Zone from corporate taxes and allows for 100% repatriation of capital money.
  • A foreign investor can only own 49 percent of a business under the foreign direct investment law, while his local partner can own 51 percent.
  • However, with a free zone setup, you can have complete control over your firm. It also permits you to send the money back to your own country.

All restrictions have been eased by the government, except for criminal law, to attract more foreign businesses.

Every process, from registration to licensing, is quick and requires little to no documentation. They also have easy access to local currency, which is extremely beneficial in the business world. Visas are also extremely adaptable.

As a result, it's easy to see why the Gulf Region is quickly becoming a startup hotspot. Dubai, as the world's most forward-thinking city, is incorporating cutting-edge technology into its growth. With so many Free Zones, it's never been easier for an entrepreneur to start a business and make his or her ambitions a reality.

Read More: Top Reasons Why You Need Business Setup Service Providers in Dubai?

Numerous Advantages of Setting up Business in Gulf Region

Advantages of Setting up Business in Gulf Region are as follows-

A Thriving and Expanding Economy

Dubai has been the most successful in terms of economic growth among the Emirates and has been particularly effective in diversifying away from oil, rebounding from the recession of 2009. Trade, logistics, transportation, and tourism together contribute for about 60% of Dubai's GDP.

Leadership with a Vision

Dubai's leaders' incredible foresight and vision have resulted in the building of one of the world's most prosperous and modern cities. Because of their faith in the future, an insignificant dusty trading outpost has been converted into a major global attraction.

Affordable Investment Climate and Government Support

The Department of Economic Development (DED) in Dubai is in charge of changing the city's economic agenda. It aims to improve the economy and gives all necessary assistance to both domestic and foreign investors in order to create a favorable Investment environment.

The Free Zones

There are more than 20 free zones in Dubai, which include a variety of industrial and corporate clusters. Investors from other countries can enjoy total ownership of their investments, as well as profit and capital repatriation.

A Tax System That is Beneficial

All companies ? whether joint partnerships registered on the mainland or companies incorporated in the FTZs ? enjoy a tax-free haven in Dubai, as in all the other emirates. This is a fantastic incentive for individuals interested in investing in Dubai.

Geographically Strategic Location

Dubai is geographically placed between Asia, Europe, and Africa, and its proximity to Asian superpowers China and India makes it a desirable destination.

Legal System

Existing investment rules, regulations, and incentive packages are constantly being revised to encourage international investment. Dubai was one of the first emirates to allow foreign ownership of real estate and equities. The World Intellectual Property Organization (WIPO), the World Trade Organization (WTO), the Paris Convention, the Patent Cooperation Treaty (PCT), the WIPO Copyright Treaty, the WIPO Performances and Phonograms Treaty (WPPT), and the Rome Convention are all international organizations that protect intellectual property.

First Class Infrastructure

Dubai features some of the world's top infrastructure, including road networks, telecommunications, ports, and airports. Dubai is putting a lot of money into infrastructure as the World Expo 2020 approaches. In fact, Dubai's Roads and Transport Authority (RTA) has revealed plans to build an underground railway system to link the expo's many pavilions.

Human Resources are Easily Accessible

Thousands of professionals from all over the world flock to Dubai because of the country's permissive labor rules. The UAE government is increasingly educating native Emiratis to work in the rapidly expanding institutions.

Political and Social climate that is Secure and Stable

Since its inception in 1971, the UAE has maintained a politically stable environment, which has resulted in an environment conducive to economic progress. Dubai is regarded as one of the world's most tolerant, prosperous, secure, and safe communities, and is named as the best city in the Middle East by Mercer's Quality of Life Index.


With the passage of time, it's easy to see why the Gulf Region is becoming a startup haven. Dubai, as the world's most forward-thinking city, is incorporating cutting-edge technology into its growth. With so many Free Zones, it's never been easier for an entrepreneur to start a business and make his or her ambitions a reality. If you are planning to setup your business in UAE, then you need to connect with Dhanguard. Our experts will assist you to establish your business and help you to make your business more efficient.

Dhanguard provides the business setup and company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free company setup in Mainland and Freezone in UAE.

Get Instant Advice