Why Do Entrepreneurs Keep Choosing Dubai (Even When World Economy Is Uncertain)

Why do entrepreneurs keep choosing Dubai (even when the world economy is uncertain)

If you hang around startup founders in the UAE, you will notice an interesting pattern.

They come with a laptop, a half-baked idea, maybe some funding – and a huge wave of optimism.

Some of them come from Europe where the regulations are getting tougher. Others come from Asia in search of global markets. A few come from North America after their realize that their operating costs at their home have become very high without them knowing.

And most of them end up in Dubai.

Looking at it from outside, the attraction is quite straightforward. The taxes are relatively low. The infrastructure is good. On top of that, company registration is a piece of cake in comparison to many parts of the world.

However, if you keep talking to founders, you start to hear something more profound.

Dubai thrives on momentum.

Instead of behaving like a city that has made a decision as to what it is, the city behaves like a place that is still in the process of becoming something. An entrepreneur could be attracted to that difference. It gives them a perception that new ideas can still grow there.

Walk a few steps in any of the co-working spaces around the city and you’ll get a visual of the pattern right away. Designers sitting next to fintech developers. E-commerce founders chatting about logistics over coffee. Consultants providing advice to companies that weren’t even around two years ago.

The variety is wonderfully chaotic.

Then there is the matter of location. Geographically, the UAE is a very unique junction. In about eight hours you can fly to Europe Africa South Asia and a large part of East Asia. If you are a company that wants to operate globally from the start, the location matters a lot.

However, it is not very easy to start a business here.

Sometimes office space prices skyrocket. In certain industries the competition is so stiff that it only hurts. Most newcomers still get mixed up when trying to figure out the difference between a mainland company and a free-zone setup.

However, the overall equation is still leaning to the side of opportunity.

Governments in the region are encouraging innovation in a very active way. Sophisticated visa programs are bringing in highly skilled professionals. The availability of venture capital has been going up, on and off, in the Gulf.

When you combine all these things, you get a place where entrepreneurs experience a very rare feeling: a sense that the system really wants them to be successful.

That is why the Dubai Marina’s cafs and Business Bay’s shared workspaces are still crowded by people who are drawing their ideas on napkins.

It goes without saying that some of those ideas won’t fly. That’s just how startups work.

But there will be a handful that, without much fanfare, will grow up to be the next big companies coming out of the region.

And when it happens, the narrative generally begins in a similar way.

Someone decided to take a gamble on Dubai.