4 Ways Dubai Aims To Attract More Global Digital Companies To Become A World-Leading Digital Economy
The Dubai Digital Transformation Strategy, approved by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, sets out many initiatives. This includes attracting more global digital companies, developing new technologies like AI and blockchain, and transforming the government into a fully digital by 2024.
In order to achieve its objective, the Government of Dubai has launched a series of initiatives for entrepreneurs, start-ups, and incubators. These programs will encourage the growth of businesses and keep them in the city.
Dubai has been very successful in attracting multinationals that are interested in serving the region he said. But now we're also trying to attract multinationals that are interested in developing their products here. To do this, he said Dubai South which hosts more than 1,000 companies across different sectors will target digital companies before they start looking for a location for expansion and make sure they know what it can offer them.
Here are four ways Dubai aims to attract more global digital companies as part of its strategy to become a world-leading digital economy.
1 - Virtual Residency Program
Dubai is rolling out an online residency scheme that allows investors, entrepreneurs and start-up founders to conduct their business online through the city’s government portals.
The initiative aims to make it easier for people to do business in Dubai by allowing them access to the emirate’s government services through one virtual platform.
2 - Free zones offer tech firms tax benefits
Free zones are able to offer businesses incentives such as 100 percent foreign ownership of businesses and zero percent taxation for up to 50 years, with many companies also taking advantage of tax exemptions on corporate profits, personal income, and import duties.
3 - Tax Incentives for companies working in AI
The emirate plans to offer incentives such as tax holidays and subsidies for companies that provide training in emerging technologies like robotics or artificial intelligence. Dubai’s tax breaks for artificial intelligence businesses have resulted in a 278 percent increase in AI companies registered to be headquartered in the emirate. As a result, the emirate is emerging as a hotbed for this technology.
4 - Building Local Talent
Dubai plans to develop a "knowledge-based workforce" through initiatives such as scholarships for students who want to pursue formal studies in the fields of science, technology, engineering, and mathematics (STEM).
According to a statement, these incentives are aimed at encouraging entrepreneurs and start-ups to launch and scale their businesses in Dubai — with a particular focus on those working in the fields of blockchain, artificial intelligence (AI), big data analytics, Internet of Things (IoT) and 3D printing. Dubai is already home to many leading digital companies including Google, Facebook, and Microsoft. The city’s new strategy aims to attract more globally-leading companies as well as build a stronger local ecosystem to support them.