Dubai and Abu Dhabi are the best cities for entrepreneurs and start-ups!

We all know that when it comes to setting some records, the UAE is always two steps ahead of the rest of the world.

It’s just like how a property launch takes place every 17 hours, the UAE also sets another record almost as quickly - this time around Dubai and Abu Dhabi have both been ranked the best cities for entrepreneurs and start-ups, globally.

Let us share everything you need to know…

Dubai - A haven for businesses and start-ups!

According to research by financial technology experts, SumUp, the ranking is based on factors like taxes, quality of life, internet speeds, and networking opportunities, making the UAE a prime destination for those looking to build and grow their businesses.

In this ranking, Dubai was ranked as the third-best city in the world for entrepreneurs, standing out for its exceptional tax benefits. With no capital gains tax or income tax, even for top earners, and a low VAT rate of just 5%, it's easy to see why many entrepreneurs are drawn to this city. The favourable tax environment means business owners can maximise their profits, making Dubai a financial haven for startups.

SMEs who rake in an income of less than $1 million annually are exempt from even paying corporate tax. Since a majority of them in Dubai annually make less than that, it has been easy for companies to grow and enable their employees to grow as well professionally.

But taxes aren’t the only reason Dubai is so appealing. The city’s entrepreneurial growth is unmatched, with over 7,670 monthly online searches for "how to make it in business." Dubai is also home to an impressive network of 72,500 millionaires and growing, offering a wide range of opportunities for networking and growth.

For those in the real estate sector, like us - Dubai's booming property market and business-friendly regulations have made it a particularly attractive hotspot. On top of that, Dubai boasts the highest quality of life score among the top five cities, making it not just a great place to work but also a great place to live!

Abu Dhabi: The calm competitor!

Abu Dhabi, ranked seventh globally, offers the same tax benefits as Dubai but with a bonus: it holds the highest quality of life score (197.22) among the top 10 cities. With a new business density of 2.5 per 1,000 people and a growing millionaire population of 24,200, Abu Dhabi presents a balanced environment for both startups and established businesses.

Global competition

While Dubai and Abu Dhabi are making waves in the business world, New York tops SumUp’s list as the best city for entrepreneurs. The city boasts the largest number of millionaires globally, with 349,500 which has made it a magnet for business growth. London comes in second, just ahead of Dubai, continuing to be a strong hub for entrepreneurs thanks to its financial ecosystem and global reach.

For entrepreneurs looking to start or expand their businesses, Dubai and Abu Dhabi offer a blend of low taxes, high quality of life, and a supportive business environment.

Now, isn’t that something?

If you are planning to relocate to Dubai, start a business or simply want to invest in the diverse market - you can drop our in-house experts a line.