UAE Emerges as Third Top Global Destination for Entrepreneurship in 2024

UAE Emerges as Third Top Global Destination for Entrepreneurship in 2024

According to new data, the UAE is one of the most popular worldwide destinations for entrepreneurs to launch their businesses in 2024, supported by aggressive government efforts and a robust start-up ecosystem.

Out of 52 countries analyzed, the UAE is ranked third by Business Name Generator, behind the Netherlands and Hungary. The survey confirms that the second-largest Arab economy is a favorable place for start-ups. Thanks to a business-friendly regulatory environment, legally establishing a business in the United Arab Emirates just takes four days. In addition, the nation provides a setting with a fair cost of living ($983.62 without rent). The second-lowest corporation tax rate in the research, which stands at 9%, is another advantage of the UAE.

In addition, other variables including happiness scores, GDP growth forecasts, WiFi speeds, and VAT were evaluated in order to identify the optimal locations for startup launches.

As per start-up specialists, the most recent ranking bolsters the United Arab Emirates's standing as a haven for fledgling businesses, providing an atmosphere that fosters creativity and expansion. a leader in the world of start-ups, providing a powerful fusion of economic dynamism, advantageous legal environments, and high standards of living. According to one expert,

"the UAE stands as a beacon of opportunity, poised to catalyse innovation and growth on a grand scale as entrepreneurs embark on their quest for success."
“Entrepreneurs face many important decisions when launching or expanding their business, and choosing the right location is one of the most crucial. The location of a business can have a significant impact on its success, affecting access to resources, market demand, and competition,”

said Linus Näslund, COO for Business Name Generator.

The UAE scored 6.6 out of 10, which is a reasonable level of satisfaction and suggests that enterprises based there will profit from a happy lifestyle.

Finland was found to be the happiest nation for business owners, while India was placed first for having reasonable living expenses. Because of their high taxes and bureaucracy, the Philippines, Italy, and Brazil were identified in the study as the most difficult places for start-ups to establish themselves.

“Entrepreneurs must carefully consider the economic, demographic, and cultural factors of potential locations. They must also evaluate the legal and regulatory environment, including taxes, labour laws, and zoning regulations, and how these will impact their operations. Ultimately, the decision of where to launch can be a make-or-break factor for success, therefore, is vital for entrepreneurs to weigh up all relevant facets,”

Naslund said.

Together with a strong GDP per capita of $47,663 and a forecasted GDP increase of 4% in 2024, the country makes a strong case for start-ups hoping to prosper in a favorable economic environment, the report stated.

The UAE's Minister of Economy, Abdulla Bin Touq Al Marri, has stated that the growth of start-ups will be vital to supporting the country's economy and helping it reach its goal of doubling its GDP by 2031.

The UAE, which is ranked second in the Middle East and 28th worldwide in the Global Start-up Ecosystem Index, has been leading the Mena fundraising in January during a VC winter because to a robust entrepreneurial ecosystem, according to statistics provided by Lucidity Insights.

According to the index, in 2023, the UAE ranked second in the Middle Eastern region and 28th worldwide. In 2024, tech start-ups in the UAE are poised to experience a more conducive ecosystem with an expected surge in funding thanks to the country’s booming venture capital market which is projected to reach $1.1 billion.

According to Tecom Group's incubation in5, as long as Dubai keeps fostering domestic innovation, the amount of money received by its startups since their founding has climbed by 25% in 2023. The increase in funding, which totaled Dh3 billion last year, is a sign of rising interest in domestic businesses in Dubai, spurred by government initiatives to strengthen the city's standing as a global hub for innovation that supports high-growth businesses.

“It is a testament to Dubai’s entrepreneurial credentials and robust investor confidence in the city’s pro-business environment,”

Tecom Group said in a statement.

Hub71, Abu Dhabi’s global tech ecosystem, has on-boarded more than 190 start-ups that have raised Dh5.4 billion collectively in venture capital since it launched five years ago to accelerate entrepreneurship in the emirate. Building on the 22 per cent increase in fundraising performance year-on-year, Hub71’s start-up community has created more than 1,100 jobs in Abu Dhabi and generated Dh3.5 billion in revenue, signing 118 corporate deals in the past two years valued at Dh658 million. Today, Hub71 start-ups operate in 22 sectors led by more than 320 founders from 54 nationalities who have established operations in Abu Dhabi to pursue further business growth and scale internationally.

News Source: Khaleej Times

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