Starting a company in Dubai is a potential business venture for international investors. And why not? UAE is one of the top business areas for a new investor with a low budget. Consequently, an investor needs to know the investment required for business in Dubai.
According to the Dubai Media Office, Dubai topped the global list for luring foreign direct investments in 2021, with 418 greenfield projects. Furthermore, according to the annual Dubai FDI Results and Rankings Highlights Report, the city’s position on the global stage rose from third to second in 2022.
Given Dubai’s investment and business opportunities, many investors have this one common question: What is the minimum investment required for business in Dubai?
If you have the same question, keep reading. This blog will tell you the minimum investment required to start a business in Dubai, Free Zones offering minimum investment business, and share some profitable business ventures you can start.
Top 3 Free Zone Minimum Investment Start a Business
1. The International Free Zone Authority, Dubai (IFZA)
The IFZA, located in Dubai’s Silicon Oasis Area, is one of the UAE’s competitive free zones. It is one of the most affordable free zones in the UAE for starting a business because it offers a variety of low-cost company formation packages.
The Dubai Department of Economic Development determines the range of commercial activities that can be carried out in this free zone. A maximum of 7 activities may be chosen under a single license. The IFZA free zone offers the following license categories:
Establishing a corporation in IFZA may reduce your company’s capital requirements and annual audit costs.
2. Dubai CommerCity
Dubai CommerCity is a brand-new free trade zone in the United Arab Emirates that provides business owners with first-rate amenities and a wealth of commercial infrastructure. The Free Zone, located near Dubai International Airport, serves as a hub for global trading companies.
This Free Zone is ideal for businesses whose operations rely on logistics. It is home to more than 170 businesses. Furthermore, it provides the necessary assistance and commercial amenities for investors looking to scale up their business initiatives quickly.
3. Sharjah Media City (SHAMS)
SHAMS, the UAE’s fastest-growing media-free zone, is home to some of the country’s largest industries and corporations. Sharjah fosters a dynamic and expanding environment for aspiring business owners. As a result, SHAMS is now one of the best free zones for established businesses and new investors with minimal investment requirements.
SHAMS offers over 150 business activities across various sectors. Contrary to the name, the company’s operations extend beyond the media industry.
Top 4 Minimum Investment to Start a Business in Dubai
There are numerous business opportunities you can pursue in the UAE. If you’re a first-time entrepreneur with a limited budget, consider the following business ideas:
1. E-Commerce Business
In the coming years, digital will undoubtedly be the way to go, with online becoming the new standard. According to the most recent Dubai Chamber of Commerce estimate, e-commerce trade in the UAE is expected to reach $9.2 billion by 2026, accounting for 12.6 percent of total retail sales in the same year. The future of e-commerce is as bright as it can be, as more people feel comfortable making purchases online, making it a profitable business idea.
2. Childcare Business
Daycare is another critical service the UAE urgently needs as more foreigners relocate there for work. Many working couples in Dubai and the other Emirates require someone to look after their children. The childcare industry is one of the best businesses in Dubai that does not require significant initial investments. Furthermore, this business idea offers a lot of flexibility and opportunity to scale.
3. Recruitment Agency
Many companies in the UAE are always looking for employees. Due to rising demand and competition, they need help to make significant employment decisions. Consequently, these businesses use recruitment agencies to fill their hiring needs.
According to a survey conducted by job portal Bayt and market research firm YouGov, almost 70% of UAE firms intend to hire new workers in the upcoming year. Furthermore, since skilled and semi-skilled labourers who travel to the UAE in search of work make direct contact with recruitment agencies, it becomes easy for you to onboard top talents and help your clients in the hiring process
4. Transportation Business
The UAE offers excellent transportation infrastructure. According to the Roads and Transport Authority, Dubai’s commercial transport industry increased by 37% in the first quarter of 2022 compared to the previous year’s period.
Due to its robust connectivity with the sea, land, and air, it is the perfect location for a transportation or logistics business. One might choose from any of the following options to launch a business in Dubai:
- Air cargo transportation
- Car rental
- Bus tours
- Courier service
What Is the Process of Starting a Business in Dubai?
Follow the guidelines below to launch a business in the UAE:
- Determine the Nature of Your Business Activity.
- Determine Your Company’s Legal Structure.
- Register the Trade Name.
- Select Business Space and Location.
- Obtaining the Initial Approval.
- Registration and Payment of Fees.
What Documents Are Necessary to Start a Business in Dubai?
You will need to submit the following general documents to the authorities to start a business in Dubai:
- A copy of your passport
- Passport-size photographs
- A copy of your entry visa
You may have to submit additional documents, depending on your choice of activity. Our experts can assist you with all the business paperwork and information regarding the investment required for business in Dubai to help you set up your business effortlessly.
What Is the Minimum Investment to Start a Business in Dubai?
An increasing percentage of startups think Dubai is a better place to launch a business than other places worldwide. However, the cost of starting a business in Dubai has risen, making it more difficult for new businesses to enter the UAE market.
Typically, a mainland business company formation will cost nearly 80,000 AED. But our experts are committed to encouraging entrepreneurship and expanding economic opportunities. As a result, Shuraa has created extremely cost-effective business solutions in collaboration with Dubai’s Department of Economic Development (DED).
With Shuraa Business Setup, you can form a Dubai LLC firm for approximately 35,000 AED. On the other hand, a professional license costs nearly 30,000 AED to open a business in Dubai. Contact the professionals at the Shuraa UK Branch for assistance with company formation. We will break down the total cost for your benefit, identify areas for savings, and ensure you only spend what is necessary.
Start a Low Investment Business in Dubai With Shuraa
Dubai continues to attract investors from all over the world due to its excellent infrastructure and business-friendly policies. Contact Shuraa Business Setup if you need help knowing about the investment required for business in Dubai.
Our business consultants assist you with all your requirements, including documentation and licensing, in getting the investment visa in Dubai and at the various stages of starting a business.