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Why is Dubai Still Considered Best to Start a Business Despite COVID-19 Situation?

To start any business, you need good infrastructure, financial and human resources, transportation, buyers, and above all, a safe and secure place. But due to the potential threats posed by the COVID-19 pandemic, new investment and business growth have been severely impacted around the world. While many countries were struggling to cope with the situation, the UAE government took immediate precautionary measures to ensure the safety of both citizens and businesses. That is why Dubai has been and continues to remain one of the top five global cities for entrepreneurs. Here are 7 top reasons why Dubai is still considered the best to start a business despite the COVID-19 situation.

  1. Government Support to Businesses
  • The Dubai government is generously supporting businesses by offering simultaneous packages along with a 25-98% reduction in the costs of doing business. 
  • The primary purpose is to encourage investment in business-related activities and to improve production, trading, exports, and innovation for business development, negating the effects of COVID-19 on businesses in Dubai. 
  1. Specific Measures For Start-Ups
  • The UAE Government is trying to help small businesses during this period. For start-ups setting up their businesses now, the government has implemented a range of measures, including the introduction of:
  • certain fee waivers
  • office rental holidays
  • online company registration
  • a more lenient payment structure like monthly installments
  1. Support from Banks & Financial Institutions
  • Banks are also helping SMEs address debts by offering loan repayment holidays and reducing fees.
  • Financial institutions and other authorities, such as the Dubai International Financial Centre, Abu Dhabi Global Market, Kizad, and Dubai Silicon Oasis Authority, are funding stressed start-ups.
  • Investment firms and accelerators, including AstroLabs, Hub71, Beco Capital, and Payfort, are offering potential funds.
  1. The UAE Government’s “Targeted Economic Support Scheme”
  • The “Targeted Economic Support Scheme” is the primary measure taken by the UAE Government that benefits corporates.
  • This scheme aims to provide temporary relief from the payments of principal and interest in respect of outstanding loans for all private sector companies affected by COVID-19
  • AED 50 billion has been freed up from banks’ capital buffers to encourage further lending to private sector businesses in need of credit during this time.
  • Attempts to relax employment measures while protecting employees by providing formal means of agreeing to salary reductions.
  • Relaxed regulations regarding the transfer of employees between different free zone-registered entities, giving employers an alternative to a temporary lay-off while maintaining the worker’s employment.
  1. Other Government Measures
  • For dealing with property costs, tenants struggling to pay their rent during the COVID-19 pandemic are exempt from eviction
  • A reduction in water and electricity bills by 10%
  • Exemption of companies from permits for new sales and offers
  • A refund of 20% of the customs fee imposed on imported products sold in Dubai
  • A 90% reduction in the fees imposed on submission of customs documents
  • Refunds of security deposits and guarantees
  • Cancellation of fines for both companies and individuals
  1. Voluntary Support from Organizations and Business Coaches
  • Organizations and individuals are volunteering to support small and medium enterprises by providing free webinars, coaching, and consultation services.
  • Business coaching providers, such as Bessern and The Co-Dubai, deliver free sessions to those that need help.
  1. Government Control Measures To Minimize Risk of COVID-19
  • The UAE government had taken all essential measures to minimize the risk of COVID-19 way before receiving instructions from WHO. In this way, the UAE has become one of the first countries to take all safety and precautionary measures, and various control actions to reduce COVID-19 effects on businesses in Dubai. 


The UAE already has a favorable tax regime in place for businesses and has attracted and sustained foreign companies to register here for many years. Additionally, during the COVID-19 outbreak, the UAE Government has implemented urgent measures to deal with the impact of the pandemic on businesses. That is why it is still a good idea to invest in Dubai despite the COVID-19 situation.

If you are planning to start your business in Dubai, then contact Creative Zone. Call +971 4407 0540 to schedule a free consultation with one of our business setup advisors today!

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