Have you some entrepreneurial flair? Do you believe that you can bring a product or service to the Dubai marketplace which will surely enrich the lives of many who live in the city-state of Dubai? If so, then it’s time to start a business.
With many free zones, excellent infrastructure, low import duties and a strategic global place, not to mention zero taxes, Dubai ranked 31st on the World Bank’s Ease of Doing Business Report in 2016. This makes the city-state one of the best locations in the world to start a business.
But, whether you’ve decided to bring API document scanning technology to the marketplace, or have designs on opening a fashion boutique, several factors must be considered before starting a business in Dubai. Here’s three that no one tells you.
The Size of Your Investment is Paramount
Budding entrepreneurs must know their start-up costs. As spectacular a place as Dubai is to set up home and start a business, it’s also not the cheapest place in the world to live and trade from.
Now, regardless of where you live in the world, or the nature of your new venture, their will be costs involved, but it’s estimated that for your new venture to be built on solid foundations – giving you the chance to thrive – you’ll need to set aside about $10,000 or Dh36,730.
In addition, Dubai CEO’s are required to hold visas. These cost a further $2,000 or Dh7,345. You also must renew your visa every two to three years. However, don’t be discouraged, every business has start-up costs. Dubai is also the go-to hub for the of the Middle East and North Africa (MENA) region – meaning if you can make it here, continents and the world are your oyster.
Don’t Neglect the Admin
According to leading Dubai CEO’s, making sure that you complete your meticulous admin efficiently and accurately is paramount. Regardless of whether you’re selling the world’s most advanced OCR cheque and receipt scanning technology or any other business, dotting the ‘I’s and crossing the ‘T’s is paramount.
Luckily, with some online research, anyone can use a series of informative ‘How To’ guides that explain the process in an easy to understand and digest way.
However, when all’s said and done, there really is no substitution for experience. If you’re starting your first business, always seek advice from those in the know – and then do it yourself. You’ll be surprised just how much you’ll learn by being dedicated and proactive!
Some Dubai Banks Have a Limited Appetite for Lending to Start-Ups
Now, before you get ahead of yourself and imagine that your API document scanning platform will revolutionise the marketplace, you need to consider how you’ll obtain start-up capital.
Many start-up companies use personal resources or loans from friends and family to get their business off the ground. This is largely because banks in Dubai have limited appetite for lending capital to start-ups, preferring to check business performance after a few years before approving a loan.
Dubai-based banks will claim to extend support for entrepreneurs to get their OCR cheque software, or any other business off the ground, but most businesses need to prove that they have a minimum turnover of Dh2,000,000 or $5,445,400. With that can of capital at their disposal, many CEO’s choose to look elsewhere for investment, and not take a loan from a bank.
Now, it cannot be argued that Dubai isn’t a great place to start a business. It is, however, one place that where CEO’s must have the utmost confidence in their products and a long-term business plan to ensure success. Scanner has such confidence in our API document scanning platform which is why we’re confident of long-term prosperity.