As we stand on the cusp of 2024, I believe this is a golden era for anyone contemplating the journey of entrepreneurship in the Gulf. Yes, this has always been true to some extent. But when we look forward to next year and beyond, everything is aligning to turn the GCC region into the choice for entrepreneurs.
The UAE and Bahrain regularly feature near the top of the World Bank’s Doing Business Index. Many more GCC states ranked in the top 15 of the Agility Emerging Markets Index 2023: UAE (3), Saudi Arabia (6), Qatar (7), Oman (12), Bahrain (14) and Kuwait (15).
Of course, making the leap to a new jurisdiction can feel daunting at first. But with just a little research, entrepreneurs find again and again that the GCC is head and shoulders above the competition as a place to work and a place to live.
So, with that in mind, here are my five key reasons why you should start a business in the region in 2024.
- The GCC is forward-thinking and growing fast: The World Bank expects the GCC economy to grow by 3.6% in 2024 and 3.7% in 2025, putting it on track to outpace all other major markets. There’s even more good news for entrepreneurs in that much of this increase will occur across a diverse range of industries. The region’s non-energy economy is set to expand by 4% next year, driven in no small part by the government’s relentless focus on innovative and emerging markets. The GCC region is fast becoming a global hub for AI, IoT, blockchain and many more advanced technologies. Add to this exceptional digital infrastructure and a young, ambitious workforce, and the Gulf has everything needed to dominate in the markets of tomorrow and beyond.
- Governments are partners, not adversaries: Much of the growth in the GCC’s non-oil sector is driven by small and medium-sized businesses like yours, and the region’s governments recognise this. Many publish guides, agendas and strategies outlining their support for entrepreneurs wishing to launch in their jurisdiction. In the UAE, the Dubai SME initiative provides support, information and outreach for the expanding small and medium enterprise sector. The Bahrain Economic Development Board offers numerous benefits to startups, including zero taxes, an attractive regulatory environment and a supportive business ecosystem. In Qatar, the QSTP Incubation Center (QBIC) offers product or service development, customer expansion and fundraising assistance to new businesses. There are many more initiatives like these across the region.
- It’s an easy place to start a business: While the process and criteria for establishing a new company will depend on your chosen jurisdiction, most Gulf states have refined their business setup processes to encourage foreign investment. That means, with the right guidance, you can usually be trading out here in a matter of weeks. As well as time-tested application and formation processes, many GCC companies offer virtual office solutions so you can launch your startup without taking on costly business premises. Free zones can be found in many GCC states, too. In most cases, these economic areas allow you to retain 100% ownership of your business and access tax exemptions and other trading advantages. Finally, the rise of digital banks in the region makes trading from here easier than ever before.
- Support for startups is unlike anywhere else in the world: Despite a global slowdown in venture capital funding, support for new businesses in the GCC continues to grow. The region’s startups raised over USD 3bn in 2022, with the final figure for 2023 expected to be even higher. Meanwhile, the wider MENA region is predicted to launch hundreds of unicorns across the next decade. These businesses will join the likes of Swvl, a UAE bus-booking startup that recently raised USD 92m in funding to become the first USD 1.5bn unicorn from the Middle East to be listed on the NASDAQ. Or Tamara, a Saudi-based buy now, pay later platform that raised USD 216m in 2022 alone. Stories like these make it clear: the world’s investors have pegged the GCC as a hotbed of innovative ideas and entrepreneurial talent.
- The region remains low tax and business-first: The GCC region is famous for its welcoming and tax-friendly policies. So much so that recent World Bank data shows tax revenue to GDP at under 1% in the UAE, 1.5% in Kuwait, 4% in Bahrain and 8% in Saudi Arabia. We can expect these figures to increase in coming years as countries in the region look to introduce new or increased taxes as they reduce reliance on oil-related industries. However, GCC business will still be among the least taxed in the world. Corporate tax is levied at 0% in Bahrain, 0%-9% in the UAE, 10% in Qatar, 15% in Kuwait and Oman and 20% in Saudi Arabia. All fall below the tax rates of many major economies, including the US (21%), India (25%) and China (25%), as well as the global average of 23.4%.
Conclusion
Establishing your new business in the GCC in 2024 is an unparalleled opportunity. The region’s strategic advantages, including a diverse and highly skilled talent pool, a business-friendly environment, and cutting-edge infrastructure, position it as a prime hub for entrepreneurial success. The Gulf countries’ commitment to innovation and global connectivity, coupled with tax-friendly policies, creates an ideal ecosystem for your business to thrive. Beyond that, GCC countries regularly rank among the safest and most expatriate-friendly in the world.
Choosing to start a business out here is not just a strategic move – it’s a decision to embrace a dynamic and forward-thinking business environment that propels enterprises towards growth and prosperity. As we stand at the brink of 2024, my conviction is clear – the GCC is not just a trading bloc, it’s an entrepreneurial hotspot primed and ready for your new business venture. So, if you’ve been hesitant previously, seize the moment now. The research is in. The GCC is waiting for you.
