Dubai has emerged as one of the world’s most attractive destinations for entrepreneurs and businesses, and Indian entrepreneurs are among the top nationalities making the most of its thriving business landscape. 

In this blog, we explore the top 10 reasons why Indians are setting up companies in Dubai and how this trend continues to shape the UAE’s economic landscape.

1. Strategic Location

Dubai is perfectly positioned between East and West, serving as a global hub for trade and commerce. Its proximity to India (just a few hours by flight) makes it an ideal location for Indian entrepreneurs looking to expand their businesses beyond India’s borders. Dubai’s connectivity through sea, air, and road networks makes it a gateway to the larger Middle East, Europe, and African markets, providing Indian companies access to billions of potential customers.

Benefit for Indian Entrepreneurs:

Dubai’s location offers Indian businesses an efficient logistical base to access global markets, reducing shipping costs and delivery times for import/export companies.

2. 100% Foreign Ownership in Freezones

One of the most appealing aspects of setting up a company in Dubai is the 100% foreign ownership allowed in the UAE’s numerous freezones. Indian entrepreneurs no longer need a local sponsor or partner to start a business in these areas, giving them full control over their companies. This ownership flexibility is a significant draw for Indian investors seeking autonomy in decision-making and profit-sharing.

Benefit for Indian Entrepreneurs:

Complete ownership of businesses enables Indian entrepreneurs to retain full control over their profits.

3. Tax Benefits 

The UAE is known for its favourable tax environment, which is a major factor for Indian entrepreneurs. Dubai imposes zero personal income tax and a low 9% corporate tax only when the profit exceeds AED 375,000, making it highly attractive for business owners seeking tax efficiency. 

Benefit for Indian Entrepreneurs:

Indian businesses can maximize their profits by avoiding the heavy taxation they might face in other countries, enabling reinvestment and business growth.

4. Ease of Doing Business

Dubai ranks among the top cities globally for ease of doing business, thanks to its streamlined procedures for company registration, licensing, and visa processing. The government has simplified the legal requirements and reduced the bureaucratic red tape, making it easier for Indian entrepreneurs to launch their ventures quickly and efficiently.

Benefit for Indian Entrepreneurs:

A hassle-free setup process allows Indian entrepreneurs to start their businesses in as little as one week, compared to the lengthy bureaucratic delays they may face in other regions.

5. Supportive Freezones and Industry-Specific Clusters

Dubai is home to over 40 freezones, each designed to cater to different industries, from tech and media to logistics, trade, and manufacturing. These specialized clusters make it easier for Indian entrepreneurs to operate in sectors aligned with their expertise, while benefiting from industry-specific networks and facilities.

Benefit for Indian Entrepreneurs:

Indian companies can tap into a freezone that caters directly to their industry, gaining access to specialized infrastructure, resources, and expertise.

6. Robust Infrastructure and World-Class Connectivity

Dubai boasts one of the most advanced infrastructures globally, including state-of-the-art airports, modern seaports, and a well-developed telecommunications network. Whether a business is in logistics, manufacturing, or technology, Dubai provides all the necessary tools and connectivity to thrive in a global market.

Benefit for Indian Entrepreneurs:

Indian entrepreneurs, particularly those in e-commerce, manufacturing, and technology, benefit from Dubai’s robust infrastructure and easy access to supply chains, both regionally and globally.

7. Favorable Investment Policies and Double Taxation Treaty

Dubai’s government is pro-investment, offering numerous incentives for foreign investors. The UAE also has a Double Taxation Avoidance Agreement (DTAA) with India, which means that Indian entrepreneurs can avoid paying taxes twice on the same income in both countries. This agreement enhances the financial attractiveness of setting up a business in Dubai for Indian entrepreneurs.

Benefit for Indian Entrepreneurs:

Indian businesses can reduce their tax liabilities significantly by taking advantage of Dubai’s investment-friendly policies and DTAA with India.

8. Diverse and Growing Consumer Market

Dubai is a melting pot of over 200 nationalities, with a highly diverse and growing population. For Indian entrepreneurs, this provides a unique opportunity to tap into a multicultural customer base. Moreover, Dubai is a global shopping destination, attracting millions of tourists annually, adding to the market potential for retail and service-oriented businesses.

Benefit for Indian Entrepreneurs:

Indian entrepreneurs, especially those in the consumer goods, food and beverage, and retail sectors, can capitalize on the diversity and purchasing power of Dubai’s population and international visitors.

9. Opportunities for Innovation and Tech Startups

Dubai is rapidly evolving as a hub for innovation and technology. Initiatives like the Dubai Future Foundation and Dubai 10X are fostering a culture of innovation, providing Indian tech entrepreneurs with access to funding, mentorship, and cutting-edge infrastructure. The government is heavily investing in sectors like AI, fintech, and blockchain, making Dubai an attractive destination for Indian startups in these fields.

Benefit for Indian Entrepreneurs:

Indian tech startups can leverage Dubai’s innovation ecosystem, benefiting from government initiatives, incubators, and accelerators to launch and scale their businesses.

10. Indian Community and Cultural Synergy

Dubai is home to a significant Indian expatriate community, which accounts for nearly 30% of the UAE’s population. This close-knit community creates a supportive environment for Indian entrepreneurs, helping them integrate into the local business culture while providing easy access to a reliable network of suppliers, clients, and investors.

Benefit for Indian Entrepreneurs:

The presence of a large Indian community in Dubai fosters a sense of familiarity and comfort, making it easier for Indian entrepreneurs to build connections, collaborate, and thrive in their businesses.

To conclude, Dubai’s strategic location, business-friendly policies, and infrastructure make it an ideal destination for Indian entrepreneurs seeking growth and expansion. The strong cultural and economic ties between India and the UAE further solidify Dubai’s position as a preferred business destination for Indian entrepreneurs in 2024 and beyond.

At Firm Advice, we specialize in guiding Indian entrepreneurs through the process of setting up businesses in Dubai. Contact us to learn how we can assist you in launching your business in Dubai.