Dubai is an investment destination that has come to be spoken about in ever-more glowing terms over recent years. It is perhaps partly because of such discussion, however, that some myths have also taken hold about what it means to be an entrepreneur in this stimulating and rewarding part of the United Arab Emirates (UAE).
So, in our capacity as a leading Employer of Record (EOR) and provider of MENA payroll services here at Aspirock, we decided to put some of the misconceptions about the Dubai business sector under the microscope.
Starting a small business in Dubai is prohibitively expensive
It is inevitable that a certain amount of capital investment will be required in order to launch a business in any part of the world.
However, Dubai’s start-up scene has been set up in a way that enables it to accommodate a broad variety of budgets. Many nearby “free zones”, for example, present low-cost licensing options, along with the ability to pay flexibly. This helps to greatly reduce upfront costs.
There is a highly complicated process to set up a Dubai business
Another misconception that seems to have persisted, is that the process of launching a business in Dubai is much more longwinded and difficult for overseas nationals than it is for local residents.
The reality, however, is that there is a highly streamlined process for setting up a business in this part of the UAE, with government agencies – such as the Department of Economic Development (DED) – standing ready to assist entrepreneurs along the way.
There are essentially three stages of company formation here: obtaining a Dubai business license, getting approved for a UAE residence visa, and setting up a Dubai bank account. This is somewhat contrary to perceptions of a cumbersome and lengthy business setup process.
The foreign business owner in Dubai must always have a local sponsor
It is not always necessary to partner with a UAE citizen in order to launch a business in Dubai. This is where the aforementioned “free zones” come in; they have revolutionized the business setup experience in this part of the world, as they allow 100% foreign ownership.
There are more than 40 free zones in the UAE, and unlike what another common myth might have given you the impression of, many of them are situated right in the city center, rather than in isolated areas of the country.
In any case, it is worth bearing in mind that even if you set up your Dubai business outside of a free zone – in other words, if you form a “mainland” company – and you require a local sponsor for certain business activities, their role will be largely passive. Such local sponsors tend to handle the paperwork during the business setup process in Dubai.
You can’t hope to flourish in the UAE business society unless you speak Arabic
The mere fact of around three quarters (75%) of the Dubai population being made up of expatriates, should indicate to you that people are unlikely to only speak Arabic in this exceedingly diverse and cosmopolitan city and emirate.
Sure enough, the international language of business – English – is very much widely spoken. Indeed, you can make a call to any company in Dubai, and you are almost guaranteed to hear the English language at the other end of the phone.
One more thing… you don’t need to look anywhere else for a Dubai EOR service
Even if – after reading all the above – you are still concerned about complexity when it comes to setting up a business in Dubai, you can simplify the process still further by making Aspirock your favored EOR service in the UAE.
Taking advantage of our well-optimized MENA payroll services and regulatory expertise can enable you to lighten the burden you would otherwise face in terms of maintaining compliance with local law on employment contracts, payroll, tax, and more.
Simply contact our team to learn more about how our service could benefit your business in Dubai, by freeing you up to focus on your company’s growth and long-term success.