Technology is becoming more and more essential to business nowadays. So, it comes as no surprise that plenty of countries are striving to create a favorable environment for the development of IT companies. Nevertheless, the United Arab Emirates stands out from other countries with its innovative initiatives as well as ambitious strategies, concerning IT companies in Dubai.
According to statistics, Dubai’s investment in the IT sector is growing at a CAGR of 8% from 2019 to 2024. This is guaranteed to lead to a total IT spending of US$23 billion. With the help of qualified real estate experts, you can pick up the most gainful and investment-lucrative projects in Dubai internet city.
Reasons for IT Companies to Choose Dubai
Today, for the world of finance and high technology figures, Dubai is associated with progress and progressive business-oriented legislation. Below are the most prominent reasons for IT companies to select Dubai.
The Burgeoning Economy
The main reason for starting a business in Dubai is the rapid economic growth. The thing is that this location occupies an honorable fifth place in terms of growth in the world. This is confirmed by the Metro Global Report 2014. Dubai has long established itself as a thriving and bustling business center. Companies from all over the world move to the UAE to open offshore companies and find IT jobs in Dubai. Nowadays, the UAE is pied-a-terre to numerous tech start-ups and multi-million-dollar corporations.
Available Real Estate
The relative affordability of real estate prices implies one of the main advantages of the UAE. For $ 1 million, you can buy four times more square meters in one of the prestigious districts of Dubai than in New York or Singapore.
Location, Infrastructure, and Reputation
When opening IT companies in Dubai, there is no need to worry about finding an office, retail store, manufacturing facility, or warehouse. Everything is pre-planned and ready to move in. Here, you will see not only high-level industrial and tourist facilities but also commercial ones. The UAE’s infrastructure is recognized as one of the best in the world. What matters here is that the country ranked second in road quality.
More than that, it is easy to apply for residency in Dubai. When buying an apartment worth more than $ 205,000, you can get resident status. This is an analogue of a residence permit, which gives you the following benefits:
- the right to legal residence in the country;
- banking service;
- education;
- medical care and the like.
In addition, residency can be arranged for the whole family.
Friendly Laws
The UAE remains one of the leaders in innovation and tech start-ups in Dubai thanks to government incentives and friendly laws. As foreign investment strongly stimulates Dubai’s economy, the government continues to amend laws to make them more favorable to foreign investors. The government supports young promising startups, especially IT companies in Dubai. Besides, documentation and legal procedures are being accelerated to ensure seamless licensing, registration, and all that jazz.
Tax Exemption
In the UAE, tax legislation is loyal since it attracts investors from all over the world. Individuals are not required to pay the following taxes for:
- inheritance;
- wealth;
- income;
- gifts, and so on.
The Emirates offer various forms of business ownership and taxation categories. Among them, there are free zones with 100% tax exemption. There is also a 30% tax credit for international film and TV production costs. In other words, the owner will not have to pay any taxes to the state.
Banking in Dubai Is Smooth and Easy
Dubai offers a well-organized banking system to meet the needs of growing businesses. It is common knowledge that the success of a business directly depends on the following aspects:
- availability of banks with a global presence;
- ease of banking;
- availability of a suitable credit form.
All this is available to companies that register their startups in Dubai.
Avant-garde Innovative Infrastructure
As a rule, the presence of a good infrastructure presupposes the further development of the company. In addition to the world-famous skyscrapers and charming architecture, Dubai is complemented by the presence of a developed infrastructure, well-groomed roads and a developed public transport system. Simply put, having such world-class infrastructure has prompted lots of reputable companies to set up a base in Dubai.
Stable and Secure Governance
It is a state that provides basic services to entrepreneurs and is a responsible steward of public resources. Dubai boasts a stable and secure business environment backed by a solid legal framework and strong governance. The city has established transparent rules and laws to protect the rights and interests of businessmen.
Availability of Skilled Workforce
The country’s cost-effective labor laws make it easy and affordable to hire employees from almost anywhere in the world. This also contributes to a convenient place of work. It is noteworthy that 90% of the workforce in the city of Dubai is made up of foreign workers.
Multinationals Companies
The majority of the world-famous multinational companies including LG Electronics, Nokia, Adidas and BBC World have their regional offices in Dubai. It should also be mentioned that plenty of international universities have campuses located in Dubai. These include the University of Wollongong and the Hult International School of Business.
List of Top 5 Tech Startups in Dubai
The United Arab Emirates is famous for its man-made wonders, sheikhs, charming beaches, and technology companies. There are more than 4,000 startups in the country, which is a very impressive figure considering that it has a population of less than 10,000,000 inhabitants. Let’s take a look at some successful startups from Dubai that have already gained huge popularity due to their technological solutions.
Getbee
The company was launched in 2017. Thea C. Myhrvold became the founders of the startup. The company’s goal is to develop unique real-time video communication software. This invention allows people to interact with customers remotely in the same way as in a physical store. In the fall of 2021, the presented startup completed its first funding round with four investors, during which it raised $1.8 million.
YZ Buyer
According to official data, the company was launched in 2017. The founders of the project are Ralitza Ivanova and Vineet Chadha. The presented company is engaged in the online implementation of fashionable clothes and accessories of high quality at an affordable price. The start-up managed to raise $1.2 million in two funding rounds involving three investors.
Ogram
Founded in 2017, the company is led by Karim Kouatly and Shafiq Khartabil. The startup offers a platform that allows entrepreneurs to find on-demand staff and pay-per-performance service providers. Interestingly, in 2020, the project managed to close one round of financing with the participation of one investor, during which it received $870,000.
How to Apply for a Job in a Dubai IT Company?
Dubai offers great opportunities for small and medium businesses, as well as private entrepreneurs. Among them, there are a first-class physical and digital infrastructure, a favorable regulatory environment as well as a global logistics base. These aspects facilitate the work of companies, contributing to their rapid development.
To apply for a prestigious job in a Dubai IT-company, make sure that a good CV and cover letters are tailored to the specific position. They should highlight relevant skills and experience to get an immediate response. Initial interviews are often conducted either over the phone or via videoconferencing. First interviews are often brief and informal. There are selection processes here, so there is usually more than one interview.
Bottom Line
So, as you see there’re lots of prominent reasons for working in IT companies in the United Arab Emirates. Dubai is renowned for innovation across all industries. The IT industry is no exception. In recent years, it has been growing noticeably, mainly due to government support in the digital economy development and the absence of large taxes. Foreign businessmen are also attracted by great investment opportunities in the Emirate.
FAQ
Why Is There a High Demand for IT Specialists in Dubai?
The Emirate government is actively investing in the development of the IT sector, which creates plenty of jobs for IT professionals in various industries from finance to sales.
Are there Special Support Systems for Startups in Dubai?
Yes, there are. There are lots of public and private business accelerators in Dubai. The 9-week Dubai Future Accelerators program is one of the most significant ones.
What Are the Working Methods in Dubai?
As a rule, the standard working day is eight hours five days a week. In terms of dress code, men are required to wear suits with a shirt and tie, whilst women should wear formal office attire.
