What are the prominent locations for company formation in Dubai?

 In the past years, Dubai established itself as a melting pot of opportunities and a renowned global hub for trade and business. That’s why the idea of setting up a business in Dubai exhibits great potential to both foreign and local investors.

There are multiple factors why the city of Dubai has become a lucrative business destination for startups and multinational companies from across the world. The booming tourism industry, numerous business-friendly communities as well and relaxed rules and regulations for investors are some of the major reasons why company formation in Dubai is at its prime.

Dubai – The Central Business Hub in the Middle East

Dubai, UAE has been doing things pretty differently in comparison with the rest of the Middle East. Dubai is the commercial capital of the UAE and has been focusing on providing emerging business opportunities in Dubai for local and foreign investors. The government has also been implementing constructive regulations in the country to help small and medium-sized businesses establish their business in Dubai easily and conveniently.

Starting a Small Business in Dubai

Dubai’s economy has expanded by 11% for the first quarter of this year according to the recent statistics. The growth prospects have attracted a number of foreign investors into the country. To start a small business in Dubai is relatively easy, however, there are a few things that must be in mind to better start off your new journey in Dubai. Additionally, investing in real estate which is one of the most profitable businesses in Dubai is another good business idea to start in UAE as the price has increased up to 4.4% in November 2021 which is the highest growth since 2015. Therefore, the tourism industry in this has experienced a drastic boost of 4.88 million tourists. The number of business licenses issued in 2021 has drastically increased at the rate of 63% compared to the last year of 2020. The number of new business licenses issued in H1 of 2022 are 45, 653 which has increased to 25% compared to the last year.

Are you wondering of what best business in Dubai or business opportunities available for investments in Dubai?

We have gathered business ideas in Dubai to help entrepreneurs who want to invest in Dubai. Moreover, we covered a full list of businesses to start in Dubai. Keep in mind that the minimum investment to start a business in Dubai is between AED 25 000 to AED 50 000 depending on various factors

When starting a business in Dubai, an investor should take into consideration the dynamics between business activity and its location. It is important to choose the right community or area where the business will reside. A business entity in Dubai can be set up either in a mainland company or a free zone, depending on the industry.

·         Mainland Company – These are businesses located or registered under a mainland contract. Normally, it requires a partnership with a UAE local, assigning 51% of its shares to the local partner or with a local service agent with the investor having 100% ownership of the business.

·         Free Zone – There are more than 45 free zones in the UAE. Companies in the free zone have the benefit of zero tax, 100% foreign ownership, and full repatriation of capital and profits. Also, Free zones are in a pre-defined geographical location across the region.

Companies in real estate, advertising, e-commerce, consulting, recruitment, and food are some of the most preferred business set-ups spread across various areas in Dubai.

Here are some of the top areas for company formation in Dubai:

For Mainland Company

·         Sheikh Zayed Road – Stretched across the center of Dubai, Sheikh Zayed Road features the city’s most iconic skyscrapers. It is home to several start-up companies and multi-national industries located on both sides of its highways. World Trade Centre and Emirates Towers are some of the most preferred destinations for business set-ups on Sheikh Zayed Road.

·         Business Bay – Taken from its name, Business Bay is home to numerous business industries in Dubai. It is located near Downtown Dubai, which is why hospitality sectors and tourism-related businesses are vibrant in this area. Also, the road network in Business Bay is highly accessible and has a great connection throughout the city.

·         Deira – The majority of businesses in Deira are small and medium-sized enterprises or SMEs. It is home to several jewelry shops, refreshment stands, and specialty stores to name a few. This area has been very convenient for business setups as company registration in Dubai is becoming easier and more straightforward.

·         Bur Dubai – Considered as one of the oldest areas in Dubai, Bur Dubai is known for its textile industry and computer accessories business. This area is a preferred address of Asian expatriates, in addition to a plethora of restaurants and cafeterias.

For Free Zone Company

·         Dubai Airport Free Zone (DAFZA) – This location is ideal for aviation, transportation, telecommunications, logistics, electronics, and luxury goods industries. DAFZA is highly praised for its safety and security yet provides a conducive environment for various types of business.

·         Dubai Healthcare City (DHC) – For healthcare services and facilities, Dubai Healthcare City is the perfect place for this kind of business. The location is known for several clinics, hospitals, and medical centers as well as home to thousands of licensed medical professionals.

·         Dubai International Financial Centre (DIFC) – DIFC is home to some of the major financial institutions and multinational companies. Furthermore, as per the UAE’s regulation, company registration in Dubai has become more favorable for investors, making DIFC one of the most preferred destinations for local and international businesses.

·         Jebel Ali Free Zone (JAFZA) – Located in the far western end of Dubai, JAFZA is the world’s largest free zone and an ideal location for manufacturing and trading businesses.

Keep in mind that location is one of the most important factors when starting up a business in Dubai. It is significant to identify the right area and its demographics; this will help a business to reach the target market properly and achieve maximum profitability.

For any kind of company registration in UAE, get in touch with our group of UAE company formation advisories, consultants, and legal experts.