Opportunities for New Start-Ups to Grow in the Emirates Even in a Pandemic
Investors worldwide choose to set up business in UAE because they find the country’s economic stability, tax-free regime, and startup-friendly processes too attractive to pass up. It is where big dreams can turn into lucrative realities for many companies. However, COVID-19 created challenges that no one could have anticipated.
The UAE government had to order non-essential establishments to stop operations and impose extreme movement restrictions among its citizens. Start-ups from nearly every industry have been compelled to revise their business model overnight to rapidly withstand the crisis.
Several months have passed since quarantine restrictions were lifted, but businesses are still facing challenges. Fortunately, the UAE is strengthening its start-up scene, creating policies that can turn the crisis into an innovation opportunity. The government recently announced new initiatives to support businesses through these challenging times. This has opened up the door for new and expanded opportunities for start-ups as consumers adapt to a post-pandemic life.
Despite the COVID-19 crisis, here’s why it’s still a good time to start a business in Dubai, Abu Dhabi, or in any part of the UAE:
Cheaper Business Processing Fees
For those who have always wanted to be their own boss, there is no better time. It is now more affordable for start-ups to get set up as processing fees have been slashed. In fact, costs for new license registrations and administration fees for businesses already operating in the free zone have gone down by up to 70 percent. This move is beneficial for both existing businesses and those looking to set up operations within the free zone.
SME Credit Guarantee Scheme
Even before the pandemic, loans can be difficult to secure. To help start-ups overcome financial challenges, the government has provided a range of financing solutions. For instance, businesses in the industrial and commercial sectors in Dubai and Abu Dhabi can expect an enhanced credit environment. National banks are encouraged to facilitate loan processes with ease to help start-ups.
More Affordable Office Rental
The demand for physical workspaces is unlikely to be diminished as many businesses see a loss of productivity when employees “work from home.” Apart from rental fees getting more affordable, local governments have also offered to cover start-up companies’ office rental costs. It’s extended support to entrepreneurs and early-stage businesses as they navigate through the current economic uncertainty.
These are just some of the initiatives that have encouraged more innovators and entrepreneurs to nurture and grow new businesses. If you need help with starting a low-cost business setup, talk to the Austria Business Center experts! We take care of everything from licensing to providing prestigious office space for your start-up. Call us today at +971 4 454 9700 for more information.