The UAE has been recognised as the best country for entrepreneurs in 2022 by GEM

The UAE was recently recognised as the most ideal country for entrepreneurs by Global Entrepreneurship Monitor (GEM). The recognition comes as yet another feather in the UAE’s cap, having constantly excelled at ‘ease of doing business’ rankings year after year. The countries were ranked based on how favourable they are for setting up new business ventures. A total of 50 countries were evaluated by the report over factors like government policies, infrastructure, initiatives for business education, socio-political conditions etc. The below table shows the 13 Entrepreneurial Framework Conditions (EFCs) over which the countries were evaluated.

A1. Entrepreneurial FinanceAre there sufficient funds for new startups?
A2. Ease of Access to Entrepreneurial FinanceAnd are those funds easy to access?
B1. Government Policy: Support and RelevanceDo they promote and support startups?
B2. Government Policy: Taxes and BureaucracyOr are new businesses burdened?
C. Government Entrepreneurial ProgramsAre quality support programs available?
D1. Entrepreneurial Education at SchoolDo schools introduce entrepreneurship ideas?
D2. Entrepreneurial Education Post-SchoolDo colleges offer courses in starting a business?
E. Research and Development TransfersCan research be translated into new businesses?
F. Commercial and Professional InfrastructureAre these sufficient and affordable?
G1. Ease of Entry: Market DynamicsAre markets free, open and growing?
G2. Ease of Entry: Burdens and RegulationDo regulations encourage or restrict entry?
H. Physical InfrastructureIs this sufficient and affordable?
I. Social and Cultural NormsDoes culture encourage and celebrate entrepreneurship?

Source: Global Entrepreneurship Monitor

The countries were assessed over the 13 factors and assigned a score for each. A National Entrepreneurial Context Index (NECI) was calculated by computing the average of the 13 scores. The UAE lead the chart with a NECI score of 6.8 beating countries like Saudi Arabia, Canada, Norway, and Israel. The UAE scored the highest for factors such as government support, post-school entrepreneurial education, and research and development transfers. Besides these, the UAE was the top performer for factors like support for female entrepreneurs and prioritization of environment.

What makes UAE the ideal destination for business setup?

Let’s analyse the reasons why the UAE constantly excels at global rankings for business-friendly destinations.

1. Tax benefits

The UAE is known to have one of the best tax regimes in the world. At 5% and 9% respectively, the UAE’s VAT and the soon-to-be imposed corporate tax are amongst the lowest in the world. Moreover, free zone and offshore companies in the UAE are exempt from paying any taxes.

2. New ownership laws

While free zones in UAE have always permitted 100% foreign ownership, the latest regulations allow complete foreign ownership for mainland companies. With these new reforms, a local sponsor is no longer required and an expat can own 100% shares in a mainland company.

3. Abundance of labour and talent

With a diverse pool of talent and labour from across the world, the UAE has never faced any kind of shortage of skilled professionals. Besides an employee-friendly labour law, the newly introduced initiatives like the golden visas have ensured that the country continues to attract a highly skilled workforce from around the globe.

4. Economic stability

The UAE can be easily counted amongst the most economically stable countries. Adequate financial reserves, strong international relations, and progressive economic policies are some of the many reasons behind the UAE’s economic stability.

5. Strategic location

With easy access to multiple seaports and airports, businesses in the UAE have immense logistical benefits. The UAE’s strategic location between the east and the west has strengthened its stature as a regional trading hub. Suffice it to say that the UAE is home to the world’s busiest airport and the busiest seaport in the middle east.

Considering the factors above, it can come as no surprise to conclude that the UAE has every desirable quality of an ideal business destination. However, setting up a business can still be daunting task no matter how favourable the business destination can be. Selecting the right jurisdiction, figuring out the costs involved, and obtaining the trade license are just some of the many things that need to be addressed before setting up a business. This is where there is a need to have a business setup advisory by your side. InZone is a leading corporate services provider in the UAE and offers end-to-end assistance in setting up businesses.

Let's Talk

Get a response within 4 business hours!

This field is required
This field is required
This field is required
This field is required
We will handle your personal data in compliance with our Privacy Policy

Recent Articles

Conditions for Corporate Tax Grouping: What You Need to Know

As corporate tax takes effect in the UAE, more and more companies are looking to adopt tax optimisation strategies. Out of these, tax grouping emerges as one of the well-known strategies that can be beneficial for businesses. But what exactly is a tax group, and what conditions must be fulfilled to form one? Through this...
Read More ›

How Small Businesses Can Obtain Corporate Tax Relief in the UAE?

Small Business Relief – An Overview As an initiative to ease the corporate tax burden for businesses in the UAE, the government has implemented a Small Business Relief scheme. Naturally, you must be wondering what entities are covered under this provision and what is the eligibility criteria for obtaining tax relief. And that’s exactly what...
Read More ›

5 Ways to Deal with Business Debt

Debt in business can be like a double-edged sword, while it can help finance your growth and expand your business, on the downside, it can quickly spiral out of control and can potentially threaten your business’s survival if you aren’t careful. Therefore, if you’re finding yourself struggling with business debt, it is necessary to take...
Read More ›

Understanding the UAE’s Corporate Tax Penalties in 2024

The UAE’s corporate tax was announced in 2022, and since then a series of regulations were put in effect for businesses to comply with. Along with the regulations, the penalties for non-compliance were also announced. As the corporate tax is fairly new, it can be quite possible for businesses to miss out on certain obligations,...
Read More ›

Company Liquidation in the UAE: All You Need to Know

Company liquidation in the UAE refers to the systematic process undertaken to close down a business. Once liquidated, the company can no longer conduct business operations and employ people. There can be several reasons behind the liquidation of a business ranging from decreased revenue, high levels of debt, legal disputes, fraud, loss due to natural...
Read More ›

Starting a Dropshipping Business in the UAE: A Complete Guide

Looking to start a business in the UAE? But wondering what type would be the easiest and can capitalize on the best of the best opportunities in the UAE’s thriving business world? Then, a dropshipping business in the UAE sounds like just the perfect venture to start your business journey! Not only does the UAE...
Read More ›

A Complete Guide to B2B Business Opportunities in Dubai

B2B stands for business-to-business, and in this type of business, companies sell products or services to other businesses rather than to individual consumers. An example of a B2B business is a company that manufactures office furniture, and instead of selling directly to consumers, it sells products to other businesses like office supply stores or corporate...
Read More ›

3 Effective Tips For Entrepreneurs To Avoid Burnout

Being an entrepreneur is without a doubt an exhilarating role, but it’s also equally demanding. The desire to succeed can at times make you put more on your plate than you can handle which eventually leads to burnout and exhaustion. This isn’t only damaging to your physical health and business, but also your mental well-being....
Read More ›

Securing Assets in the UAE Through Offshore Company Formation

The United Arab Emirates without a doubt has become an attractive destination for investors who are seeking to secure their assets through offshore company formation. If you’re one of them too, or whether you’re simply seeking to protect your assets, this guide will provide an in-depth understanding of the requirements, benefits, and procedures for setting...
Read More ›
We Accept

We accept the following credit cards. Our website is secured with SSL 256 Bit Encryption.

We accept credit cards
Why Choose InZone
  • We provide 30 day money back satisfaction guarantee to all our clients.
  • We provide 100% confidentiality to all our clients.
  • We provide a dedicated account manager.
  • We provide bank account opening assistance through our well-established banking relationships.
Refer & ReceiveRefer and Earn
Contact Us