How to set up IT and software business in UAE
The phrase “information technology” refers to data that may be obtained through technological means. People’s mindsets have been restructured by modern technology, which has made them reliant on it for everything and has reshaped the entire world into a small village where every person, every task, whether professional or casual, is linked to cyberspace, and this is known as Information Technology Enabled Services (ITES). ITES refers to the outsourcing of operations that include and combine many sectors such as human resources, medical care, manufacturing, and telecommunications with contemporary technology.
It appears to be a blank space if we envision the world without the Internet or ITES. The IT market is continuously evolving by accepting new technological footprints, and any firm that does not use IT will not exist long. IT and ITES have altered the corporate landscape by digitizing the business core and making every company tech-savvy. To compete in this market, every country has been expanding its technological industry. The UAE, as one of the world’s brightest economies, is expanding its IT industry to establish itself as a worldwide IT powerhouse, including many areas such as digital marketing, software development, cybersecurity, and electronic management, among others.
Digital transformation in UAE
The UAE government has been working on several strategies to make the UAE one of the world’s smartest cities in every way by 2020. Dubai Now App, MyID, and ePay are examples of digital services that connect the government with the general population. These changes have greatly boosted the need for IT workers and the IT sector.
Growth Drivers for IT and software companies
The UAE is at the forefront of information technology, artificial intelligence, and innovation thanks to massive government support.
With expanding business possibilities and demand from regional corporations, the UAE provides the ideal environment for software development businesses.
IT market growth in UAE
According to the Dubai Chamber of Commerce and Industry Report, the UAE is driven by technology and innovation, with IT expenditure anticipated to rise at an annual rate of 8% to reach AED 23.1 billion by the end of 2019.
Over the next five years, IT spending is anticipated to rise at a rate of about 7.2 percent each year.
For Software Development firms in the UAE, the rising number of Free Trade Zones offers a choice of cost-effective company formation options.
Additionally, particular Free Zones cater to the needs of entrepreneurs looking to start a business in the following sectors: information technology, software development, artificial intelligence, computer programming, research and development, and so on.
Where to set up an IT and Software business in UAE
Both the government and international investors play important roles in the development of the IT industry. Before moving on to the incorporation process, one must first choose a site. Dubai offers several free zones dedicated to each industry, which draws a large number of international investors. In Dubai Internet City, Dubai Techno Park, Dubai Media City, or Dubai Silicon Oasis, one may now start or develop an IT firm. Let’s take a look at each of them individually.
1. Dubai Internet City
Dubai Internet City is a 1.5 million square foot cluster with over 1600 company partners in areas such as the Internet of Things, Cyber Security, Artificial Intelligence, Big Data, Robotics, and others.
2. Dubai Techno Park
Dubai Techno Park was founded in 2003 to maximize the growth of the IT sector. It spans a total area of 21 million square feet. Life sciences, industrial development, information and communication technologies, and the socio-economic sector are among the emphasized sectors to integrate them with technology.
3. Dubai Media City
Dubai Media City, a massive media park with a broad range of IT firms, first opened its doors in 2001. The center’s mission is to help the media community push the boundaries of creativity. This facility serves as a hub for graphic design and web development firms that offer IT services.
4. Dubai Silicon Oasis
The Dubai Silicon Oasis is a technology park and a free zone dedicated to information technology. This hi-tech environment, which covers 7.2 million square feet, is the world’s biggest sophisticated electronic invention. The center offers and supports technological investment for current businesses and startups, as well as an incubation center, in-house business services, capital venture funding, and other services that help freelancers expand their opportunities.
5. IFZA Dubai
The Dubai International Free Zone Authority (IFZA) has teamed up with the Dubai Silicon Oasis Authority to provide low-cost business establishment packages to entrepreneurs wanting to establish a base in Dubai.
IFZA Dubai offers specific business activities for software development companies such as:
- Software Program Development
- IT Consulting
- Software Programming
- Technology Equipment Sales
- IT Trade
- Network & Server Programming
- Web Programming & ECommerce and more.
IFZA Dubai is one of the region’s most vibrant and rapidly expanding Free Zones. It provides budding entrepreneurs with all the infrastructure and company setup assistance they need to achieve their goal of starting a business in Dubai.
6. SHAMS Freezone
Sharjah Media City (SHAMS) is a vibrant Free Zone in the United Arab Emirates that offers a variety of attractive company formation packages as well as a variety of commercial incentives to investors. It offers entrepreneurs a variety of office options, including shared desks (Flexi-desks), shared offices, and dedicated offices (9-50sqm fully furnished office).
The Free Zone’s rich ecology of media, IT, trading, consulting, and business network makes it an IT and media powerhouse for the area.
SHAMS is a great place for young entrepreneurs and start-ups to get started.
7. Dubai Technology Entrepreneur Campus (DETC)
The Dubai Technology Entrepreneur Campus (DTEC) is the best location for software and IT firms.DTEC offers a variety of company setup solutions to meet the needs of each entrepreneur.
DTEC offers a variety of office options, ranging from Flexi desks to completely equipped offices (12-50sqm). DTEC is an ideal co-working environment for IT startups and software development companies to cooperate and work together.
The following papers must be submitted to the DED in order to incorporate or start an IT firm in Dubai:
- Copies of the firm owner’s and partners’ passports
- Proof of payment of the first approval fee
- NOC from the sponsor (if any)
- A notary will witness the signing of the partnership agreement.
- A single investor must pay AED 10,000 as a security deposit, while partners with a professional license must pay AED 20,000.
- The firm is required to have a registered office, which the owner may supplement with a tenancy agreement.
The Emirates allows IT firms to be registered as both a professional firm with full ownership and a sole proprietorship.
Major IT services in UAE
The following are among the most notable IT services in UAE:
- Technology Outsourcing
- Call Center Outsourcing
- Network Security
- Management of IT Services like Cloud Hosting, Backup Recovery, Infrastructure Monitoring, etc.
- Digital Transformation through the involvement of Digital Marketing
- Server Installation and Maintenance
We can see that in addition to the core IT industry, Emirates has opened many doors for other company areas as well as freelancers who are tech-savvy and fall under the ITES umbrella.
How Radiant Biz helps you
In matters like business setup, people tend to get confused and get in chaos due to several rules and requirements. This is the time when people tend to look for an expert. A lot of chaos can be avoided if guidance is taken from the very beginning. Every venture may have unique requirements like location, customer convenience, logistical feasibility, and banking services.
We at Radiant Biz strive to understand these unique precepts and provide expert and reliable consultation to our clients with updated laws and governing regulations, awareness of their rights, and cost-effective business solutions tailor-made to their business needs and budget.