What is a Startup?
A startup is indeed a business that aims to grow quickly. A company does not become a startup just because it was created recently. It’s also not required for a startup to focus on technology, receive venture capital, or have an “exit” strategy. Growth is the only thing that matters. All else we connect with startups stems from their ability to grow.
If you want to establish a business, you’re trying to come up with a plan for a business that can grow quickly, whether you realize it or not. And there’s only two options: develop new technology or create a new market. That is all there is to it. Everything else, such as the “business model,” is a minor detail.
Starbucks is an excellent example of a firm that does not fit our traditional strategy for starting a business. However, it does show one guideline that I believe is crucial: you should focus on one subject and execute it well.
Starbucks demonstrates the value of specialization. Why can Starbucks charge so much? Because they offer far more than just coffee. They also offer atmosphere, service, and product variety. The transaction feels different from buying a canned coffee in the supermarket, because it is different.
The young have always been better at seeing new technologies than their elders. This has long been true of science, but now it is true of business as well. Young people are less encumbered by obsolete assumptions, because they have spent less time acquiring them. They’re more likely to take risks and try weird stuff, because they haven’t yet learned how hard it is to succeed, or how painful failure feels.
As a result, it’s not unexpected that all of the great businesses are created by young individuals, such as Google, which was established by 2 persons in their twenties, or that the majority of successful founders who did not start companies before the age of 30 came from technical backgrounds. Someone must have done it by now if it were simple to be effective without even being young and technical.
Growth of UAE Startups in 2022
The UAE is at the forefront of innovation and future technology, not only in the Middle East region but also globally. The UAE government has set an ambitious vision to become the best country to do business and invest in.
The country offers a unique value proposition to entrepreneurs with its strong government support, limited bureaucracy, strategic location and large pool of investors and tech talent.
Regardless of the pandemic’s consequences UAE start-ups have grown by 3.9% in 2022 compared to 2021, according to a report released by the Dubai Chamber of Commerce.
According to the research, UAE start-ups grew in 2022 comparing to 2021, due to a surge in demand for innovative digital solutions and business transformation.
Furthermore, the report stated that the expansion of UAE start-ups is attributed to an increase in the number of newly formed companies in the UAE, as well as increased government backing for the industry as technology investments hit new highs.
The UAE’s growing start-up ecosystem is attracting a lot of attention, both from the local population who are keen to get involved, worldwide investors on the lookout for the next big thing.
Based on what we’ve seen so far, it is apparent that the UAE ecosystem is rapidly expanding, and start-ups are beginning to emerge. With the assistance of the government, which has aided start-ups in terms of finance and incubators, start-ups have been able to develop.
The UAE has always been a country that was willing to implement new technologies and strategies. This makes a great environment for any start-up as they can take advantage of this forward thinking mentality.
It has become a global hub for entrepreneurship, and the start-up ecosystem here is developing at a rapid pace.
The key ingredients we needed to create a strong ecosystem were already present: an entrepreneurial culture and government support. But back then, it was more difficult for start-ups to access funding and talent. The landscape has changed dramatically since then.
Startup Environment in UAE
The United Arab Emirates is establishing itself as a regional and global startup hub. The majority of people in the UAE work in or own a retail establishment. In reality, retail SMEs account for 90% of all enterprises in the UAE. With such a number of other companies in the same field, it’s understandable that this is what most people are familiar with.
But at some time, we must move past our comfort zone and create some real wealth in this country. For example, consider how few entrepreneurs there are in the financial services sector. If you asked most people why they do not work in finance, they would probably say because it is too risky. But isn’t being an entrepreneur itself risky? We need more entrepreneurs who is willing to take chances and add value to the economy
The same goes for technology companies – which are desperately needed as other sectors turn to digitalization to reduce costs and boost efficiency
The UAE is a small country with a big ambition. To become a leading global hub for innovation. The UAE’s leadership has set in motion a number of initiatives and programs to achieve this goal, including the creation of many innovation parks and labs such as Dubai’s Silicon Oasis, and the recent launch of the Mohammed Bin Rashid Innovation Fund.
UAE is the ideal place for entrepreneurs to set up shop. With a low tax rate, a stable economy, world class infrastructure and a diverse business ecosystem, there’s no better place to start your business in the Middle East than UAE.
In today’s globalized world, the UAE has been working to create a startup ecosystem that can attract entrepreneurs from all over the world.
Factors to Support UAE’s Startup Environment
There are some of these factors that support UAE’s startup environment are:
- Government Support
- Low Startup Costs
- Entrepreneurial culture
- limited bureaucracy
- Strategic Location
- Large Pool of InvestorsGovernment Support
1. Government Support
The government of UAE has established various funds such as Abu Dhabi Investment Authority, etc. These funds not only help in promoting entrepreneurship but also push innovation. Recently, “Startup2Startup” platform was launched by the government with an aim to connect startups around the world with investors and other stakeholders.
2. Low Startup Costs
Compared to the other countries, starting up in UAE is cheaper. This has been made possible due to low office operating costs, lower than average salaries and free zones that allow 100% foreign ownership.
3. Entrepreneurial Culture
Another important factor that distinguishes UAE from other countries in the region is its entrepreneurship culture. The government along with local businesses are making an effort to encourage young entrepreneurs, who can bring about a positive change to society with their innovative ideas. The StartAD accelerator program launched by New York University Abu Dhabi (NYUAD) is an example of how different sectors in UAE are working together to support entrepreneurs. This accelerator program provides entrepreneurs with mentorship and advice from industry experts.
4. Limited Bureaucracy
The limited bureaucracy is one of the factors that make UAE one of the best places to start a business. While there are several other countries in the region that provide a conducive environment for businesses, UAE stands out due to its strategic location and cultural diversity. The UAE has always been a middle-ground between East and West and this makes it the perfect place for investors from around the world to do business without any cultural barriers.
5. Strategic Location
While it is still a young ecosystem, its growth potential is immeasurable. With high levels of innovation and early adoption among customers, and with a strategic location which enables startup teams to reach new markets quickly and at low cost, it is no surprise that Dubai’s startup ecosystem is poised for rapid growth.
Not only is this a strategic priority for the UAE government, but it also happens to be an area that has already seen significant growth.
6. Large Pool of Investors
The presence of large pool of investors in the region who are always on lookout for innovative business ideas is also factor that will support UAE’s startup.
“The global startup ecosystem is one of the most dynamic environments in the world today. The UAE-based startups have a tremendous opportunity to access local and international investors, experts and professionals, which will help in the development of their businesses,” said Ibrahim Ajami, Managing Director, The Investment Office at Dubai FDI.
The Top 10 UAE Startups to Watch
According the Global Entrepreneurship Index, the UAE has been placed 2nd in the Arab world for entrepreneurship for the past three years. The UAE government is taking initiatives to promote entrepreneurial spirit and creativity as startups become an increasingly crucial pillar of the economy.
The following ten startups have received significant investment from local VCs and business angel.
These are some of the companies worth watching:
- Bayzat
- Algorythma
- Trukker Technologies
- Fetchr
- Tenderd
- Talabat
- Noon.com
- Careem
- Souqalmal
- PropertyFinder
What Are the Top 5 Industries for New Businesses in Dubai?
There are hundreds of industries in which companies can thrive in Dubai. Consider the fact that Dubai is a city of commerce, and there are many businesses that are thriving in the city. If you are an entrepreneur or investor who is looking to Set Up a Business in Dubai, you should consider researching the top five industries for new businesses in Dubai.
- Import & Export
- Healthcare
- Real Estate
- Information Technology
- E-commerce
Conclusion
The United Arab Emirates (UAE) is the land of opportunity, a hub for global investment with a diverse and forward-thinking economy. It has one of the highest per capita incomes in the world and has long been a hub for foreign investment and business opportunities. The UAE was the first Gulf country to diversify its economy beyond oil.
Over the last few years, the nation has invested heavily in building an entrepreneurial ecosystem, providing government incentives and seed funding to young tech startups that aim to improve lives and create new industries.
UAE is one of the top destinations for entrepreneurs to start a business. It’s a tax-free country with a politically safe environment and has a stable economy. If you are planning to start your business in UAE, you have made the right choice. But, remember it’s not easy to do business here. You need to undergo several legal formalities like visa processing, opening a bank account, getting approvals from local authorities and others. You also have to adhere to their rules and regulations for running your business successfully.
