Is it safe to start a business in Dubai? (Covid-19 & other factors)
Is it safe to start a business in Dubai? ( Covid – 19 & other factors )
You’ll need strong infrastructure, financial and human resources, transportation, buyers, and, most importantly, a safe and secure location to start any business. However, new investment and company growth have been severely hampered throughout the world as a result of the possible risks posed by the COVID-19 pandemic. While many countries struggled to cope with the crisis, the UAE government acted quickly to protect the safety of its residents and companies. As a result, Dubai has been regarded as one of the top five worldwide destinations for entrepreneurs.
Dubai chose to take a chance and gradually reopen its economy while undertaking one of the world’s largest immunization campaigns. Other nations are anxiously examining the techniques used to determine the inferred success rate of Middle East business and tourism hub prices as a test case for resuming normalcy. There are hopeful rumours that Dubai would lead the way and become a “Vaccination Tourism” destination as well.
Healthcare, tourism, start-ups and entrepreneurial enterprises, IT and online education, among other areas, have seen increased output. The safety precautions at each site are quite strict, yet the enjoyment quotient is high
Despite the COVID-19 issue, here are seven reasons why Dubai is still the greatest place to establish a business.
1. Government Support to Businesses
- The Dubai government is generously assisting businesses by providing various packages that include a 25-98 per cent reduction in company expenditures.
- The main goal is to stimulate investment in business-related activities, as well as to enhance production, trade, exports, and innovation for business development while minimising the impact of COVID-19 on Dubai enterprises.
2. Specific Measures For Start-Ups
- During this time, the UAE government is attempting to assist small companies. The government has introduced several initiatives to help new enterprises start, including the provision of certain fee waivers
- Office rental holidays
- registering a business online
- a more flexible payment plan, such as monthly payments
3. Support from Banks & Financial Institutions
- Banks are also assisting SMEs with debt management by providing loan repayment holidays and lowering costs.
- Financial institutions and other agencies, such as the Dubai International Financial Centre and the Dubai Silicon Oasis Authority, are lending money to struggling businesses.
- Potential funding is being offered by investment firms and accelerators such as AstroLabs and Payfort.
4. The UAE Government’s “Targeted Economic Support Scheme”
- The UAE government’s major corporate-beneficial programme is the “Targeted Economic Support Scheme.”
- For all private sector firms affected by COVID-19, this plan intends to give interim respite from principle and interest payments on existing loans.
- Bank capital buffers have been freed up to promote more lending to private sector firms in the need of credit during this period.
- Attempts to ease employment restrictions while safeguarding employees by establishing a legal mechanism for agreeing to pay cuts.
- Relaxed rules on employee transfers between free zone-registered businesses, providing employers with an alternative to a temporary layoff while keeping the person employed.
5. Other Government Measures
- Tenants who are unable to pay their rent because of the COVID-19 pandemic are excluded from eviction to deal with property expenditures.
- A ten per cent decrease in water and power costs
- Companies are exempt from obtaining permissions for new sales and offers.
- 20 percent of the customs charge paid on imported goods sold in Dubai is refunded.
- Fees imposed on the filing of customs paperwork have been reduced by 90%.
- Security deposits and guarantees are refunded.
- Fines imposed on both corporations and individuals are being cancelled.
6. Voluntary Support from Organizations and Business Coaches
- Small and medium-sized businesses are benefiting from free webinars, coaching, and consultancy services provided by organisations and people.
- Bessern and The Co-Dubai, provide free sessions of their business coaching’s to individuals in need.
7. Government Control Measures To Minimize Risk of COVID-19
- Before obtaining orders from WHO, the UAE government has taken all necessary steps to reduce the danger of COVID-19. As a result, the UAE has been one of the first nations to implement the necessary safety and preventive measures, as well as different control mechanisms, to mitigate COVID-19’s effects on Dubai’s companies.
For many years, the UAE has had an advantageous tax environment for enterprises, which has attracted and kept foreign firms registering here. Moreover, during the COVID-19 epidemic, the UAE government took immediate action to address the pandemic’s impact on companies. That is why, despite the COVID-19 issue, investing in Dubai is still an excellent choice.
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.