If you are aspiring to become an entrepreneur, Dubai might be the ideal location to launch your startup. 

In the first half of 2016, the Dubai Chamber of Commerce reported that 8,000 new companies had registered. This indicates how attractive the city is for entrepreneurs and investors.

While Silicon Valley remains the number one breeding ground for entrepreneurs from around the world, the UAE and more precisely Dubai, hold a similar reputation in the region. This is mainly because of "Free Zones", economic and political stability and diversity. 

Here are the 5 reasons why you should consider starting your business in Dubai.

1. Favorable regulations

Highly attractive incentives are offered in the Free-trade Zones of the UAE. These zones are now home to around 10,000 companies. 

Dubai holds the highest number of these zones and thus benefits the most. While each free zone has a different set of regulations and a specific set of activities that are permitted within that zone, they all share common benefits such as:

  • No personal income or capital gain taxes
  • No corporate taxes
  • No duties on import orexport
  • 100% repatriation of capital and profits
  • Liberal labor laws and no recruitment problems
  • No currency restrictions
  • Free transfer of funds.

According to the "Doing business Report" of 2017, the UAE is ranked as number one globally in terms of ease of paying taxes. This is a result of non-existent corporate income tax.

2. Networking opportunities

Networking is the core of entrepreneurship and also happens to be the core of Dubai’s culture. Being a successful entrepreneur requires working with like-minded people and acquiring new clients. 

Dubai hosts around five to six international exhibitions every month. With the multitude of international entrepreneurial and trade events that Dubai organizes each year, there is no better place in the MENA region for networking than this city.

3. Incredible diversity

With 200 nationalities living in Dubai, it seems as if the whole world is gathered in one place. This is a quality which is shared with most business hubs around the world; mostly Silicon Valley. 

Having a diverse environment in terms of cultures helps entrepreneurs build stronger businesses. Diversity is the key to innovation and growth because it helps in having a multitude of different perspectives and ideas to solve a problem.

4. So many investors

While finding investors to fund a startup can be really challenging in Dubai due to massive competition, the number of investors that are willing to take the risk and invest large amounts of money in a startup is increasing, especially in the technology sector. 

There is only one catch, investors will usually only fund a startup at very late stages when it has already proven itself successful. Some examples of Dubai-based startups, which are growing at an exponential rate due to multiple rounds of funding, include Souq.com, Instashop, Careem, Bridg and the list goes on.

5. Economic and political stability

The UAE has secured a diverse business landscape that remains stable despite the volatility in the world market. According to HSBC’s Expat Explorer 2016 survey, 60 perecent of expats are confident about Dubai’s economic stability. 

This percentage is higher than the global average of 52 percent and is also the highest in the Middle East. According to the same survey, Dubai is considered by 78 percent of the expats to be safer and more politically stable than their respective home countries.