There has never been a better time to invest in Dubai. The government has many economic growth projects in place to elevate the city into a global leader of business and quality of life. Examples include the Dubai Economic Agenda (D33), Dubai Urban Plan 2040, Digital Dubai Strategy, Dubai Metaverse Strategy, and the Dubai Clean Energy Strategy.
The Dubai population is expected to cross 4 million this year. If you’re on the hunt for new investment opportunities, consider starting a business in Dubai. The city offers many benefits to business owners, including a company setup process mostly free of red tape.
Why is Dubai the Best Place to Invest?
1. High Growth Rate
Dubai is a fast growing city. As the population grows, the Emirate has created multiple job opportunities, invested in tourism, and created infrastructure to support its position as a thriving business hub.
As the UAE is positioned near many international ports, it is an ideal destination for entrepreneurs and foreigners. Additionally, easy access to Europe, Asia, and Africa makes the country a popular location for getting a business license.
2. Low Tax Obligations
Dubai has a low corporate tax of 9%, along with a 5% VAT. There are also no taxes on income, property, or capital gains. This makes setting up on the Dubai mainland or in a free zone a profitable business venture for foreigners. A business setup consultant can guide you through starting a company in Dubai.
Corporate tax is only levied on companies with turnovers over AED 375,000 and the deadline for every business is within nine months of the end of the FY (financial year). Businesses have to file VAT 28 days within the end of their tax period. This tax period may be yearly, quarterly, or monthly depending on the revenue threshold.
Working with a tax consultant can help you understand local laws and stay compliant with the Federal Tax Authority (FTA).
3. Diverse Range of Opportunities
If you need guidance implementing one of your business ideas in Dubai, you should speak to a company formation expert who can help you decide how lucrative your idea can be. They can also help you streamline the setup process.
4. Ease of Business Setup
There is limited red tape around company setup in Dubai. It is simpler to start a business in the Emirate than most places around the world. Licensing procedures are fast tracked if you work with a local business setup consultant who has connections with the regulatory authorities and banking institutions.
5. Government Incentives
There are also specific free zones catering to different industries. For example, the DIFC Free Zone houses multiple finance, crypto, and tax-related businesses. Other free zones in Dubai include JAFZA (Jebel Ali Free Zone), Dubai Silicon Oasis (DSO) Meydan Free Zone, IFZA (International Free Zone Authority) and Dubai Internet City.
6. Stability
7. Golden Visa
Investing in Dubai can also make you eligible for the Golden Visa, which allows foreigners to live and work in the country for 5 or 10 years. A minimum investment of AED 2 million is required for company and/or property investors.
How to Invest in Dubai: Steps to Start a Business
1. Choose a Jurisdiction
Due to a recent rule change, Dubai free zone businesses can now trade with companies based on the Dubai mainland as long as they have a license from the Department of Economy and Tourism (DET). Foreigners also have the option to set up an offshore business.
2. Pick a Company Structure & Register a Business Name
Company structure options include:
- Sole establishment
- LLC
- Branch company
- Civil company
- PJSC (Private Joint Stock Company)
- Free zone establishment (FZE)
- Free zone company (FZCO)
Dubai Free Zone | Dubai Mainland |
Regulatory authority depends on free zone | Regulated by Department of Economy and Tourism |
Limited number of business activities | Every business activity is permitted |
No import/export duties | Import and export duties levied |
Faster licensing process | Slower licensing process |
Qualified entities exempt from tax | Every entity subject to tax |
Full foreign ownership | Full foreign ownership |
Can trade with mainland only with DET permit | Unrestricted trade access to local and international locations |
Difficult to expand operations | Easier to expand operations |
3. Apply For a Trade License
You’ll need documents like your passport copy, Memorandum and Articles of Association, trade name reservation, Certificate of Incorporation, initial approval confirmation, business plan, financial statements, and a shareholder certificate for the license application. Certain documents may need to be notarized and/or attested.
Free zone license | Starts at AED 5,500 |
Mainland license | Starts at AED 15,000 |
4. Get Your Residence Visa
Visa applications can only be started after your trade license has been issued. A residence visa allows you to sponsor dependents to legally live and work in the country. Certain free zones may have a limit on the number of visas issued. Mainland companies generally have unlimited visa quotas.
5. Open a Bank Account
Many banking institutions offer business bank accounts with different benefits. Wio Bank is a completely digital banking service that offers bank accounts for startups and SMEs. Other options include RAKBANK, Emirates NBD, Mashreq Bank, Emirates Islamic Bank, and Dubai Islamic Bank.
5 Thriving Sectors for Investing in Dubai
Real Estate
The real estate sector contributes to a large portion of Dubai’s economic growth. The first half of 2025 saw a 40% increase in real estate transactions, crossing AED 326.7 billion. Areas like Business Bay, Dubai Hills, and Jumeirah Village Circle (JVC) are experiencing growth.
You can invest in this sector by buying property and flipping it for a profit, or investing in developing areas across the Emirate. If you want to become a real estate agent in Dubai, you will need to complete the RERA certification to get licensed.
Energy
Tourism & Travel
If you want to start an Airbnb business, you need a license from the Department of Economy and Tourism (DET). Any kind of tourism or travel business will require a tourism license. Some investment ideas include:
- Offering guided tours
- Offering unique staycation experiences
- Offering guided food tours
- Offering sustainable travel experiences
Food and Beverage
As a city known for its diverse range of food options, starting a restaurant, cloud kitchen, cafe, or a food truck is a great way to invest in Dubai’s food and beverage (F&B) industry. Eating out remains a popular choice for residents, with surveys reporting people eating out at least twice a week.
Artificial Intelligence
As part of the country’s goal to become a globally recognized AI leader, Dubai hosted an “AI Week” in April, aiming to increase AI usage across industry sectors. Artificial Intelligence is expected to contribute over AED 300 billion by 2031. AI innovators are also eligible for the Golden Visa, which offers long-term residency without the need for a sponsor.
There are multiple free zones in Dubai supporting AI and technology businesses like Dubai Multi Commodities Center (DMCC) and Dubai Internet City. A local company formation expert can help you get an AI business license.
Invest in Dubai by Starting a Business with A&A Associate
A&A Associate houses expert business setup consultants who can guide foreigners through starting a company in Dubai. We provide unlimited support throughout the licensing process along with bank account assistance.
We have helped clients set up businesses in free zones and on the mainland, making sure the process is as hassle-free as possible. Book a free consultation today!
