For entrepreneurs, the United Arab Emirates ("UAE") ranks as one of the world's most attractive economies. It is especially true for businesses that deal with imports and exports, global value chains, and logistical network integration. With minimal bureaucratic red tape and quick resolution of issues, the UAE government offers an attractive regulatory environment for enterprises. As a direct result of these provisions, the number of successful startups in this economy has increased by double digits since 2012.
The Global Rankings
In the COVID Economic Recovery Index issued by Horizon Research Group, the UAE ranked top in the Middle East and North Africa region. In addition to demonstrating the state's fiscal and monetary stability, this reflects its ability to allocate resources to navigate economic upheaval. Because small businesses do not have the financial resources to weather an economic downturn, economic stability and financial protection are essential for startup incubation. The government of the UAE has demonstrated its strong commitment to encouraging startups by giving entrepreneurs competent advice and financial aid.
Startups and Developments
Small and medium-sized firms (SMEs) contributed 40 percent (in 2017) to the UAE's gross domestic product (GDP) in 2017, but by 2021, they will account for nearly half (45%). As a result, the government still needs to give incentives, strengthen business support measures, cut expenses, and promote effective commercial regulation. A business's plan of exponentially extending its size, on the other hand, poses a challenge. If they want to expand beyond the borders of the United Arab Emirates, they'll need a well-thought-out expansion strategy that includes the Middle East and North Africa.