Entrepreneurial culture in the UAE is one of the biggest positives when we consider it. Besides all the business advantages and government support, the fostering of an entrepreneurial culture in the United Arab Emirates attracts business minds and potential investors from around the world.
Culture is an important factor for any organisation or startup to build sustainable growth. As we all know, the United Arab Emirates is known for its vision, purpose, and innovation in entrepreneurship. The UAE has established a strong foundation for startup ventures, ensuring a dynamic business ecosystem and a diverse economy. The country facilitates the inception of new enterprises and offers them an unwavering support system to thrive and find opportunities.
How is the UAE Building Entrepreneurial Culture?
Many examples and initiatives significantly reflect the UAE’s thriving entrepreneurial culture, in a country where entrepreneurship contributes more than 50 per cent to GDP.
Entrepreneurial Progress in the UAE
The United Arab Emirates undoubtedly offers the most attractive startup environment worldwide. Its geographical location at the crossroads of the world, combined with modern infrastructure, has made it a gateway to the Middle East and more distant regions. Dubai, the commercial city of the UAE, has a busy harbour and the world’s third-largest airport.
The country’s economy has become traditional yet highly efficient. Oil, which was the main contributor to the country’s GDP, has declined, while the non-oil sector, including real estate, banking, tourism, IT, and logistics, now accounts for over 95% of its GDP. All these have increased entrepreneurship and innovation.
Entrepreneur-Friendly Government Initiatives
The UAE government has played a massive role in implementing a robust environment for startups. Setting up Free Zones is one of the major visionary initiatives, which offer many attractive advantages such as tax exemptions, 100% foreign ownership, and profit returns. These zones have considerably decreased the burden for international entrepreneurs to come and run their businesses in the city.
The economic landscape of the UAE has become even freer since 2021, when it was no longer necessary for foreign investors to have local sponsors. As one of the support services offered by the Dubai International Financial Centre (DIFC), online company registration and rapid immigration procedures are available.
Taxation System and Incentive Program
One recent change is the introduction of standard 9% company tax on taxable profits above $102,110 per annum. Nevertheless, under certain conditions, FZCs with eligible income can benefit from a tax rate of zero per cent.
One of the tax relief measures intended to assist startups and small businesses by reducing their tax liability and compliance costs is the recent introduction of Small Business Relief for Corporate Tax Purposes by the UAE Ministry of Finance. A rebate is available to Dubai mainland businesses with annual revenue not exceeding $816,771. The rebate will be available until the end of 2026.
Financial Support
Another initiative under the Government Procurement Programme is that the government will set aside a portion of the bids made through its procurement exclusively for Emiratis and local businesses, which are small and medium-sized enterprises (SMEs) on the mainland, thus enabling the latter to access opportunities continuously.
On the other hand, the UAE SME provides widespread financial assistance in the form of loans and services for business expansion to UAE residents only. Such steps are part of a bigger plan to empower the entrepreneurs and help their businesses grow.
Final Remarks
The UAE’s entrepreneurship culture is progressive and rooted in deep values and traditions. Organisations that want to build a good entrepreneurial culture at their workplace need to be filled with real entrepreneurial spirits. The United Arab Emirates is more than just for luxurious holidays and skylines; it's the startup founders and aspirational minds that soar here. Whether it's a first-time entrepreneur or an established firm, the UAE offers support and community to pursue their dreams.
To build an entrepreneurial culture in UAE companies, focus on creating a supportive ecosystem by encouraging risk-taking and fostering free will, while also aligning with the local business context of relationship-building, respect for cultural norms, and leveraging government initiatives like business support. We at Markai Corporate Services help founders gain clarity in their business perspective and assist in building a thriving yet core entrepreneurial culture in UAE companies.
