UAE Ranks Third as Top Global Destination for Entrepreneurs in 2024

We’ve got some exciting news from the world of entrepreneurship! According to new data, the UAE has secured its place as the third most popular global destination for entrepreneurs to launch their businesses in 2024. This remarkable achievement underscores the country’s aggressive government efforts and robust start-up ecosystem, making it an ideal place for new ventures.

A Favorable Business Environment

Out of 52 countries analyzed, the UAE is ranked third by Business Name Generator, trailing only behind the Netherlands and Hungary. The survey highlights the UAE as a top spot for start-ups, thanks to its business-friendly regulatory environment. Incredibly, establishing a business in the UAE takes just four days. Additionally, the country offers a fair cost of living ($983.62 without rent) and the second-lowest corporation tax rate in the study at 9%.

Key Factors for Start-up Success

The ranking considered various factors including happiness scores, GDP growth forecasts, WiFi speeds, and VAT rates to identify the best locations for start-up launches. Experts agree that the UAE’s recent ranking solidifies its reputation as a haven for fledgling businesses. The combination of economic dynamism, advantageous legal environments, and high living standards makes the UAE a leader in the start-up world.

Linus N?slund, COO of Business Name Generator, stated, “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 significantly impact its success, affecting access to resources, market demand, and competition.”

A Happy Place for Entrepreneurs

The UAE scored 6.6 out of 10 for satisfaction, suggesting that enterprises based there will benefit from a happy lifestyle. Comparatively, Finland was found to be the happiest nation for business owners, while India topped the list for having reasonable living expenses. On the flip side, the Philippines, Italy, and Brazil were identified as the most challenging places for start-ups due to high taxes and bureaucracy.

N?slund emphasized, “Entrepreneurs must carefully consider the economic, demographic, and cultural factors of potential locations. They must also evaluate the legal and regulatory environment, including taxes, labor 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.”

Economic Strength and Growth Prospects

With a strong GDP per capita of $47,663 and a forecasted GDP increase of 4% in 2024, the UAE offers a compelling case for start-ups looking to thrive in a favorable economic environment. The UAE’s Minister of Economy, Abdulla Bin Touq Al Marri, highlighted that the growth of start-ups will be essential in supporting the country’s economy and achieving its goal of doubling GDP by 2031.

Leading the MENA Region

Ranked second in the Middle East and 28th globally in the Global Start-up Ecosystem Index, the UAE has been at the forefront of MENA fundraising. According to Lucidity Insights, the UAE led the region in January during a VC winter due to its strong entrepreneurial ecosystem.

In 2023, the UAE ranked second in the Middle Eastern region and 28th worldwide. Tech start-ups in the UAE are expected to experience a more supportive ecosystem in 2024, with an anticipated surge in funding from the country’s booming venture capital market, projected to reach $1.1 billion.

Dubai and Abu Dhabi: Hubs of Innovation

Tecom Group’s incubation in5 revealed that Dubai’s domestic innovation efforts have increased startup funding by 25% in 2023, reaching a total of Dh3 billion last year. This surge reflects rising interest in Dubai’s domestic businesses, driven by government initiatives to bolster the city’s reputation as a global hub for innovation.

Hub71, Abu Dhabi’s global tech ecosystem, has on-boarded over 190 start-ups, collectively raising Dh5.4 billion in venture capital since its launch five years ago. Hub71’s community has created over 1,100 jobs in Abu Dhabi and generated Dh3.5 billion in revenue. With a 22% increase in fundraising performance year-on-year, Hub71’s start-up community continues to thrive, signing 118 corporate deals in the past two years valued at Dh658 million. Today, Hub71 start-ups operate in 22 sectors led by over 320 founders from 54 nationalities.

Conclusion

In conclusion, the UAE's rise as the third top global destination for entrepreneurship in 2024 highlights its strategic efforts to foster a thriving start-up ecosystem. With its business-friendly regulatory environment, low corporate tax rates, and a supportive infrastructure for innovation, the UAE presents a compelling case for entrepreneurs worldwide. The country's strong economic indicators, coupled with a commitment to enhancing its start-up landscape, make it a beacon of opportunity for new ventures. Whether you're a seasoned entrepreneur or just starting, the UAE offers a dynamic and prosperous environment to launch and grow your business.

So, if you're considering where to plant the seeds of your next big idea, look no further than the UAE. Its blend of economic stability, growth potential, and supportive policies make it an ideal destination for entrepreneurial success. For more healthy updates stay tuned to N7 Real Estate’s Newsletters.