Why are some Indian tech companies establishing a presence in Dubai?

Why are some Indian tech companies setting up shop in Dubai?

Dubai is the largest city in the United Arab Emirates and the capital of the Emirate of Dubai (UAE). At the start of the 21st century, the city went from a modest fishing village to a cosmopolitan metropolis focused on tourism and hospitality. Dubai is one of the world’s best-known tourist attractions, with the world’s second-largest five-star hotels and the world’s tallest building, the Burj Khalifa.

Located on the eastern coast of the Arabian Peninsula, it hopes to be the business hub of West Asia on the Persian Gulf. Dubai also serves as a vital international hub for the transport of passengers and goods. Oil revenues helped the city’s development, already a major trading center.

Dubai’s economy is centered on commerce, tourism, aviation, real estate, and financial services, and it has long served as a regional and global trading center. Oil production contributed less than 1% of the emirate’s GDP in 2018. In 2021, Dubai’s population is expected to be around 3,456,058 people, according to government estimates.

A serial entrepreneur investigates what makes the Middle East attractive to Indian startups. The UAE is a hub for expats and global businesses; its strategic location offers enormous business prospects around the world, making it a hub for Indian start-ups. Recently, Dubai hosted the first Indian Start-up Summit, which provided a great opportunity for digital start-ups to meet and provided both ecosystems with important mentorship for the growth of Indian start-ups.

The Middle Eastern country is keen to help disruptive Indian fintech start-ups succeed by providing an international platform and financial support. In addition to providing economic opportunities for Indian start-ups, UAE officials are keen to promote entrepreneurship, as evidenced by the recent Indian Start-Up Summit. Start-ups are disrupting the UAE market for a variety of reasons.

For starters, taxes in Dubai are lower for starting and running a business. Doing business in Dubai has a number of advantages, including lower taxes. Residential real estate leases are taxed at the fixed rate of 5% and commercial real estate leases are taxed at the fixed rate of 10%. Even though owners have to pay license fees, Dubai has no capital gains tax, making it a favorable market.

Second, the demographics of the population are very similar so if you move from India to Dubai you won’t have to adjust to things like learning the language. There are already a lot of Indians living there, which makes it a great place to live, and the proximity to India adds to the appeal.


Third, to reach the next 6 billion consumers, making India the second largest ecosystem in the world. In terms of laws, it is also easier to do business with the UAE. Because the UAE has such a diverse range of businesses, demand and supply is not an issue. In terms of internet penetration and infrastructure, the region is also one of the smartest in the world, making it ideal for connected start-ups. India has the third largest technology innovation ecosystem in the world, while the UAE aspires to become the global technology center in the future. If innovation meets its hub, the end product can benefit many customers.

As a result, we can receive the guidance and mentorship needed to help us grow and be successful in doing business together. Growing opportunities in the UAE, such as the Abu Dhabi Global Market Program, which supports financial services innovation, have appealed to us.

According to a restaurant technology company operating in the United Arab Emirates, restaurants are innovating by leveraging technology to create smooth customer service, which has put them ahead of the competition. Consumers are motivated to embrace new technologies because they are convenient, and Dubai offers us fantastic opportunities due to its high internet penetration. Food technology is booming right now and the future of the point of sale (POS) industry will be filled with innovative and promising products.

The reporting and analysis tool provided by the point of sale software is an essential feature of the reports generated by the program, as owners can now call back their customers by feeding their information. Customer data can be analyzed, enabling businesses to provide personalized promotions to their customers. As a result, we benefit from complex and easy-to-manage services.

Apart from this, the Middle East country is keen to collaborate with Indian start-ups due to their market readiness and India’s abundance of technological expertise. The India-UAE connection strives to improve participation, access to finance and innovation by establishing a good interaction between the two start-up ecosystems.


Wi-Fi can be found almost anywhere. Tourists and artists from all over the world flocked to this place, but now its technicians and venture capitalists. Talabat’s grocery delivery services now coexist with high-end automobiles on roads you wouldn’t expect to see bicycles. Online team meetings have become commonplace. The buzz about sprawling tech campuses is palpable. Artificial intelligence (AI) and machine learning (ML) are now part of the official lexicon. Executives are often considered among the strongest supporters of technological innovations, regularly tweeting their support for small businesses and start-ups.

Dubai is trying to jump into the future. Ammar Al Malik, CEO of Dubai Internet City and Dubai Outsource City, recalls that not so long ago, tech companies were building their products in San Francisco or Bangalore and opening a sales office in Dubai to sell in Europe. , in Africa and the Middle East. East. According to Malik, Dubai has been a popular place for IT professionals and entrepreneurs looking to start businesses and develop cutting edge technology for the rest of the world in recent years.

The main draws are:

  • The simplicity of starting a business.
  • Access to world-class infrastructure.
  • A large number of investors.
  • No income tax.
  • Low VAT (value added tax).
  • Proximity to India.

Ajinkya Tanpure, whose Dubai-based company Crossval provides financial modeling software to help start-ups raise funds and investors value their investments, says he started his company at DIFC (Dubai International Financial Center) in seven days because the administrative requirements were precise. . He had his first paying client within a week of opening the office. “The cost of starting a business is also minimal,” he says. “The legal structure is well established and the laws are basic and in English. “

Ajith Nayar, the co-founder of Cam-Com, who built an AI-based visual inspection platform, was supposed to be in Dubai for a fortnight promoting his business, but he’s been there for around nine months. now. According to the former Wipro and Oracle executive, Dubai has attracted top talent from India, the United States, Singapore and Germany. “A diverse talent pool adds substantial value. The second generation of expats graduating from local colleges is a great candidate pool to choose from, as they can work anywhere in the world. IT salaries in this country are roughly comparable to those in other parts of the world.

“The main advantage is that there is no tax and the living conditions are excellent,” explains Nayar.

Excellent incubators-

The Startup Hub has over 10,000 small and medium-sized businesses in Dubai, while Dubai Internet City has over 1,600 businesses and over 24,000. DIFC employs around 27,000 people in 2,900 businesses, with 350 new fintech companies launched several month. There are additional training academies for technicians, and incubator and accelerator programs.

The In5 incubator, according to Pranav Ajgaonkar, whose Indian company Ganymedes helps companies create applications, products and services, is one of the largest in the world. “Not only did In5 choose our product as a business idea to incubate, but they also simplified the process of obtaining a trading license and opening a bank account,” he explains. Then they were “held in the hand every step of the way” through mentoring sessions, meetings with business decision makers, investor meetings and other activities.

Another beneficiary of the In5 program is Madan Kumar, co-founder of D Feminine Collections, an e-commerce portal for Indian ethnic clothing. Kumar says he had access to mentors who taught him pricing techniques and that the city’s infrastructure met all of his requirements.

dubai in5

These hubs also help start-ups connect with infrastructure providers, government organizations, and universities.

Dubai is a fantastic starting point for trips to the Middle East, North Africa and Europe. And, because it’s home to people from all over the world, exporting to countries like Australia, New Zealand, and Latin America is pretty straightforward.

Take care.

However, beware of agents who offer assistance with starting a business, setting up offices in conjunction with local partners, and setting up a bank account. They might not be able to deliver anything. Dubai is also a place where many businesses suddenly fail, and it is best to use the proper channels.

With a booming venture capital industry, raising funds is easy; But, do your proper investor investigation, as there have been instances where the promised investments did not materialize even after the shares were given.

You should also know which businesses can be started without the help of a local partner.

edited and proofread by Nikita Sharma

Comments are closed.