Day: June 15, 2023

The UAE is becoming a preferred choice for newly established businesses to raise funds, expand, and hit the billion-dollar mark.

The Dubai Government will continue to support and nurture the emirate’s flourishing startup and small-and-medium enterprise (SME) ecosystem with an aim to support 30 companies to reach unicorn status by 2023, said Hadi Badri, CEO of the Economic Development Department at the Department of Economy and Tourism, Dubai.

“For aspiring unicorns, there’s no better time and no better place than now to do business in Dubai and use Dubai as a gateway to the broader region. Entrepreneurship and innovation are in our blood and our DNA. We, as a government, are committed to providing the right support and infrastructure to foster that growth,” Badri said during the opening remarks on the third day of the World Government Summit at Madinat Jumeirah.

Dubai has created some of the region’s top unicorns such as Careem, Swvl, Emerging Markets Property Group (EMPG), and Kitopi.

The UAE is becoming a preferred choice for startups to raise funds in order to expand and reach unicorn status. Recently, Indian startups presented their pitches in Dubai to raise funds as part of the “India-UAE startup corridor”.

“As part of the Comprehensive Economic Partnership Agreement (Cepa), it was decided to have an India-UAE start-up operation, under which there were several programmes of which is, identifying 50 promising startups from India, bringing them here and uploading them so that at least 10 of them become unicorns by 2025,” Dr Aman Puri, consul general of India, Dubai said in January.

Saudi Technology Ventures has projected that the Middle East and North Africa (Mena) region could create more than 45 unicorns by 2030 worth $100 billion plus in equity value.

There are over 1,150 unicorns in the world and at least 47 countries have one unicorn. The US (612), China (174) and India (65) have the highest numbers of unicorns.

Hadi Badri said the venture capital (VC) market and ecosystem remain vibrant in the UAE. “In 2022, the Middle East and North Africa VC investment exceeded $3 billion VC funds invested in the UAE, which represented 40 per cent of all that funding. Yet, the UAE only represents three per cent of the Mena population,” Badri said.

In order to satisfy the demands of the entrepreneurship community, the UAE has successfully developed a legislative framework that is continually evolving, reaching or surpassing the highest international standards.

One of the most alluring places in the world for investments is the United Arab Emirates. It boasts one of Asia’s fastest-growing economies, which has drawn a lot of investments, startups, and business owners. This remarkable achievement was made possible by a comprehensive set of legal regulations and business ethics that the government put in place to promote investment and create a welcoming atmosphere for both investors and entrepreneurs. These changes have obviously been made in connection with the UAE hosting Expo 2020, which will undoubtedly have a significant influence on the economy of the UAE, stimulating economic growth and creation of job, for years to come.

In order to satisfy the demands of the entrepreneurship community, the UAE has successfully developed a legislative framework that is continually evolving, matching or surpassing the highest international standards. Due to the prosperous and alluring economic environment this has produced, which is conducive to investment, some of the largest regional organizations have decided to put their headquarters in the UAE. Due to this, the UAE has become a significant economic center in the Middle East. In addition, a significant set of guiding concepts have been added. The idea of collaboration between the public and commercial sectors is arguably the most significant. This has made it possible for local and international organizations to establish a basis of mutual trust and respect with the global business community, producing a commercial environment that is more favorable to both parties.

The UAE has also created a variety of projects and policies that attempt to link both the public and private sectors with business owners, making it easier for them to reach out to potential clients. Additionally, these programs encourage direct collaboration between these crucial sectors, giving the chance to exchange ideas, knowledge, and services in the most effective way. Due in large part to ongoing innovation, the corporate sector is today much more accessible and has given rise to numerous previously unattainable prospects. This has turned out to be a double-edged sword, though, as the same developments have raised the potential of fraud, cybercrime, and intellectual property theft, all of which can be harmful to business owners.

Regarding the advancement of business law, the UAE has emerged as a global leader. The most significant of the several significant laws and orders that have been passed to safeguard the interests of corporations are: 2016’s Law No. 19, which prohibits commercial fraud. Federal Decree No. 20, passed in 2018, forbids money laundering and fights terrorism financing. Law No. 7, passed in 2002, which codifies the protection of intellectual property. Additionally, Federal Decree No. 19 of 2018 on Foreign Direct Investment, Federal Decree No. 9 of 2016 on Bankruptcy, and Law No. 37 of 1992 on the Preservation of Trademarks are included on the list. The use of the rights to intellectual property without the express written or verbal consent of the right holder or their authorized representative is also prohibited by Article 40/92, which also grants legal protection to the right holder’s creations or intellectual property.

These regulations contain a number of unmistakable shared ideas, such as a dedication to openness and the complete and truthful exposure of each commercial entity’s financial situation. Additionally, it offers the most secure and modern financial systems, which promote investment and safeguard investors, to businesses and the investment community in the UAE. It is also obvious that there are particular punishments for breaking commercial law, which are listed in Articles 339 to 373 and include fines and incarceration as penalties. Articles 1, 2, 3, 5/1, 13, and 14 of Federal Law No. 4 of 2002, which criminalizes money laundering, outline a range of punishments that are part of laws that address money laundering.

Entrepreneurs must go through a number of steps before launching any project or initiative, such as fully researching their market or service, persuading a bank of the viability of their project, and hiring a legal expert to ensure they use carefully drafted agreements that protect themselves and their stakeholders by adhering to UAE commercial laws.

The UAE has put in a lot of effort to establish the best possible environment for business owners, from a flexible and comprehensive legislative framework that safeguards both the business owner and investor to the development of platforms that link startups with other institutions in the public and private sectors. Due to these initiatives and the swift growth of the regional economy, the UAE has become the preferred location for Middle Eastern businesspeople.

Business executives from India have found success in the United Arab Emirates (UAE), where they have built international brands in the world’s oil heartland. Dubai, the most populous city in the United Arab Emirates and one of the cities with the greatest growth rate in the world, draws Indian entrepreneurs because it is convenient for conducting business, has access to top-notch infrastructure, welcomes investors, offers world-class living standards, has no income tax, and is close to Africa, Europe, and India.

All of these business moguls arrived in the Gulf in the 1970s and rose to the top from lowly positions. Before moving to Bahrain, Jagtiani was well-known for operating cabs in London. He later relocated to Dubai and established his Landmark Group there. This organization today has more than 45,000 employees along with more than 1000 stores spread over the Middle East, India, and the Persian Gulf. Pillai left his father’s Kerala farm to launch a construction company in Saudi Arabia. He currently employs over 70,000 people across his various enterprises, which include those in the hotel and hospitality, steel, cement, and the oil and gas sectors.

There are plenty more who have established the standard for achievement. One of these individuals is Sunny Varkey, a son of educators who runs more than 250 schools in 13 nations and is one of the most influential educators in the Gulf. Then there are gold dealer Firoz Merchant, a dropout of school who visited Dubai for his honeymoon but never left, and petrochemical boss Yogesh Mehta, who serves as the chief executive officer of Petrochem Middle East, the biggest chemical distribution company in the Middle East and is ranked number 12 in the world.

The idea that the UAE was famed for luring Indian business tycoons with inexpensive labor disproves the claim.

Indians now dominate the construction, healthcare, retail, financial services, manufacturing, logistics, hospitality, and the whole service sector. They have made their imprint across all industries. They hold a prominent position and are the main contributors to the economy.

Early settlers

For the most part because of their trade and commerce, India has had touch with the UAE for many decades. UAE served as a major destination for Indian blue-collar laborers in the early years. An influx of Indian workers arrived after the 1960s oil discovery. They were primarily from the state of Kerala. However, as the oil sector grew and free commerce in Dubai expanded in the 1970s and 1980s, there was a sharp increase in the number of Indian migrants.

3.5 million Indian expatriates live in the UAE as of now, making up the largest ethnic group there and constituting 27% of the nation’s almost 10 million residents.

Growth

It has drawn a lot of Indians, particularly business owners and tech experts, who are relocating to Dubai, a secure global city with a diverse and multilingual population. Today, highly accomplished professionals make up about 35% of the Indian population in the UAE.

“A number of businesses owned by the Indian diaspora have been able to grow into multinationals in their own right because to the business climate in the UAE. These companies include, among others, the Lulu group in retail, Aster in healthcare, and Sobha in real estate. According to Navdeep Suri, a former Indian ambassador to the UAE and a co-chair of the Federation of Indian Chambers of Commerce and Industry (FICCI) national committee for the Dubai Expo, these enterprises have investments in India and represent a true bridge in commercial relations between India and the UAE. An advocacy and trade association based in India is called FICCI.

“Indians are regarded for their technical proficiency and dedication to discipline. Indian expatriates have an advantage over people of other countries because of these characteristics. Indians have made a significant contribution to the employment sector of the nation as well as established themselves as businesses.

“Dubai, in particular, bridges the time difference between the far West and the far east, particularly when there are crucial meetings or calls. Living in Dubai makes it simple to travel to these areas and makes doing business there easier because we operate all over the world, from the US to Europe and even Japan. Due to the geographic advantage, accessibility is extremely high.

“Due to its strong and stable business ecosystem, Dubai continues to draw investors from India even as the UAE and India cooperate and get closer.

Dubai ranks first among other nations on the happiness rating as well, according to the speaker, thanks to its advanced technology and extensive infrastructure. The Singh Foundation assists business owners in Tier I and Tier II cities in raising capital for their projects. Additionally, it collaborates with Ketto.org to pay for children’s procedures whose parents cannot cover the price.

“Many Indian start-ups and entrepreneurs looking to grow have made investments in Dubai. 200 of the 3,000 start-ups in Dubai were created by Indians, according to Singh, who was recognized as one of the Times’ 40 under 40 young people and was listed among Fortune India’s 50 most powerful female entrepreneurs in 2020.

In Dubai’s real estate market, Indian investors come in first place. According to figures from the Dubai Land Department, more than 5,000 Indians invested more than Dh10.89 billion in Dubai’s real estate market in 2019.

Indian Prime Minister Narendra Modi made reference to the contribution of the Indian diaspora, which is heavily involved in charitable endeavors, during his visit to the United Arab Emirates. Since 2014, Modi has made two trips to the UAE, and he stated that “India is delighted of the reality that more than 30 lakh Indians constitute a component of the development process of Gulf countries.”

The UAE is home to a diaspora of 3.5 million Indians who serve the nation well and make significant contributions to its development.

Young second-generation Indians are currently growing their influence, either as business owners or as successors to family firms, armed with foreign degrees and computer know-how.

Growing Indian business activity in the United Arab Emirates contributes to improved diplomatic and commercial ties between the two nations.