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    Home » Like ‘London 20 years ago’: Why global entrepreneurs are betting big on Dubai, everything you need to know
    STARTUPS

    Like ‘London 20 years ago’: Why global entrepreneurs are betting big on Dubai, everything you need to know

    Arabian Media staffBy Arabian Media staffMay 16, 2025No Comments6 Mins Read
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    According to Vadim Kouznetsov, Founder of JobX Dubai and business startup expert, the emirate’s business environment rivals major global cities in its attractiveness to entrepreneurs.

    “Having lived and worked in London, Munich, and Moscow, I can say that Dubai stands out as the most business-friendly city,” Kouznetsov said in an exclusive interview with Arabian Business. “It reminds me of London 20 years ago – incredibly diverse with 200+ nationalities, predominantly expat population, and an openness to new ideas that’s hard to find elsewhere.”

    The UAE’s appeal extends beyond its zero income tax and low VAT rates. What sets it apart, according to Kouznetsov, is the entrepreneurial spirit and openness to partnerships, particularly in the digital space.

    According to DMCC, Dubai “boasts a wealth of benefits for businesses and companies looking to succeed, thrive and connect to the rest of the world.” Additionally, the UAE is considered a “low-risk” nation for businesses.

    A recent report by Dubai Framework for Cultural Statistics revealed that Dubai is home to 40 per cent of start-ups that secured over $1 million in funding in the region with 306 are based in the city.

    The report further highlighted Dubai’s infrastructure and business enabling environment as factors that have contributed to its global positioning.

    Image: Supplied

    Setting up your business: The practical guide

    The process of establishing a business in the UAE is straightforward, with multiple user-friendly platforms:

    • TAMM for Abu Dhabi operations
    • Invest in Dubai platform
    • DED Cafe Dubai
    • BASHR for UAE-wide operations

    “For digital entrepreneurs, I highly recommend the Dubai in5 program – it’s been a game-changer for innovative tech ventures,” Kouznetsov advised. “You’ll pay just around AED 12,000 annually for the first three years, get affordable office space in Dubai Internet City, and receive visa support.”

    Kouznetsov broke down the real costs based on his experience, including often-overlooked expenses:

    Mainland Dubai costs:

    • Registration and licensing: AED 15,000-50,000
    • Annual trade license: AED 10,000-50,000
    • Office rent: AED 15,000-150,000 annually
    • Visa processing: AED 3,000-5,000 per visa

    Freezone costs:

    • One-time registration: Around AED 9,000-10,000
    • Annual license: AED 10,000-50,000
    • Office space: Starting from AED 15,000 annually
    Dubai Internet City

    Hidden costs to consider

    “From my experience, here are the costs that often catch entrepreneurs off guard,” Kouznetsov said. These include:

    Employee-related expenses:

    • Visa costs for team expansion
    • Mandatory medical insurance
    • End-of-service benefits
    • Annual flight allowances

    Office-related costs:

    • One-year advance payment for office rent
    • Minimum space requirements based on visa count
    • Utility deposits and setup fees
    • Parking fees in business districts

    Kouznetsov identified two major opportunities in the UAE market that are currently underexploited:

    “We’re at a moment with AI that feels like the internet in 1994 – the possibilities are endless and most industries haven’t even begun to tap into its potential,” He explained. Kouznetsov sees particular opportunities in:

    • Healthcare tech
    • HR and recruitment
    • Real estate tech
    • E-commerce solutions

    DMCC cited several benefits to setting up a business in Dubai, these include: Trade flexibility, location flexibility, no restriction on office space, ownership and taxation. It also advised to take into account certain considerations such as regulatory oversight and Emiratisation quotas.

    Dubai Multi Commodities Centre

    Content creation economy

    “The social media landscape has completely changed. It’s no longer about follower counts – it’s all algorithm-driven now,” Kouznetsov said. He sees significant opportunities for entrepreneurs who understand modern content creation and distribution strategies.

    Based on his experience, Kouznetsov offers three key pieces of advice:

    • “Don’t overthink it – just start. I see too many people getting stuck in the planning phase. With tech ventures, it’s better to launch quickly and iterate based on feedback.”
    • “Focus on distribution first. Build your online community before your product. I’ve grown JobXDubai.com to over 300,000 followers across social media channels because we prioritised community building from day one.”
    • “Don’t try to reinvent the wheel. Look for existing markets where you can add significant improvements rather than trying to create entirely new categories.”

    Corporate tax considerations

    The UAE’s new corporate tax system remains globally competitive:

    • 0 per cent tax on income up to AED 375,000
    • 9 per cent tax on income above AED 375,000

    “Coming from Europe, I can tell you it’s still one of the most tax-efficient places to run a business,” Kouznetsov said.

    While the opportunities are significant, the biggest hurdle remains upfront costs. “You need to be prepared for annual payments – office rent often requires one check for the full year. It’s different from places like the UK where you can start a business for £15 online.”

    Despite the challenges, the UAE continues to evolve its business environment to attract global entrepreneurs. “I believe Dubai could see an entrepreneurial boom if they lowered setup costs and eased office requirements, especially for solo entrepreneurs and AI ventures,” Kouznetsov explained.

    “The potential is enormous, but the initial financial barrier can be challenging for bootstrapped startups,” he added.

    Dubai took the top spot with the startup ecosystem valued at over $23 billion at the end of 2023

    For entrepreneurs considering the UAE as their next business destination, the combination of tax benefits, strategic location, and business-friendly policies makes it an attractive option, provided they’re well-prepared for the initial investment required.

    In October 2024, Dubai Chambers released a Dubai Startup Guide – a handbook to assist entrepreneurs and startups in establishing their businesses in Dubai.

    The handbook covers extensive areas of business including legal requirements, business setup options, and funding opportunities. It lists key entities supporting startups, along with information on Dubai’s accelerators, business incubators, sandboxes, and free zones.

    At the time of launch, the statement said, “The guide is designed to help both local and international startups navigate Dubai’s business landscape, empowering them to make informed decisions and leverage the city’s unique position as a global business hub.

    Additionally, it provides practical advice, access to online resources, and recommendations for tailored support, enabling entrepreneurs to confidently start or expand their businesses in Dubai.”

    The city has several initiatives and support entities to aid the growth and development of startups in Dubai. The UAE is tipped as the leading incubator for startups with over 5,600 businesses registered in Q2 2024, according to Statista.

    Dubai took the top spot with the startup ecosystem valued at over $23 billion at the end of 2023.

    “I believe Dubai could see an entrepreneurial boom if they lowered setup costs and eased office requirements, especially for solo entrepreneurs and AI ventures. The potential is enormous, but the initial financial barrier can be challenging for bootstrapped startups,” Vadim concluded.



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