Halfof Dubai's workforce is employed by startups, which make up about 50% of registered companies. To develop emerging technologies and expand the possibilities of innovation, the UAE government is committed to transform the country into a testbed for startups and entrepreneurs. Numerous programs have been launched and are still being implemented to support the setup of new businesses in Dubai over the past two years. In the Middle East and North Africa (MENA) region, Abu Dhabi and Dubai have set up the majority of startup funds and support programs. Nevertheless, you shouldn't let that stop you from pursuing your dreams of entrepreneurship and business. Funding for your business in the UAE can be obtained in many ways.

In Dubai, startups have received funding from venture fund partners, angel investors, business incubators, seed funding from seasoned investors, crowdfunding, and self-funding. Business owners and startups traditionally used banks and money lenders for financing. This has been largely replaced in Dubai in the UAE by investors and incubators. Crowdfunding, private equity, and venture capital networks have contributed most to the growth of startups and SMEs in Dubai and the rest of the UAE.

The UAE Startup Funding Process: What You Need to Know?

For startups in the UAE, the following five sources of financing are most common: Families and friends:
You can get funding for your startup this way, which is the easiest and fastest way. Getting a loan for your Dubai SME launch is much easier if you ask family and friends who trust you and your vision.

Sources of alternative funding:

Consider applying for microloans and crowdfunding sites like Eureeca, Zoomlaa, and Beehive if your business plan and funding options are ready. The UAE is following the global trend of gaining popularity for these platforms. By marketing your business plan in this way, you can raise small amounts of investment from a wide range of people.

Investors, funders, and supporters local to the area:

SME development centers provide access to funding for local small and medium enterprises. There are numerous incubators, startup hubs, accelerators, industry associations, local business councils, and startup programmes in free zones in this category.

The fourth type of investor is an angel investor:

Both startups and established companies can benefit from angel investors, who provide investment capital against equity shares.
Dubai Angel Investor Network, Women's Angel Investor Network, and Falcon Networks are three of the most commonly used angel investor networks.

5) Venture capital and private equity:
Startup funding for Dubai SMEs is increasingly coming from private equity and venture capital channels. A thriving business ecosystem has been created by Dubai's economic and business tools. Startups receive venture capital for minor equity shares, while established companies in traditional industries receive private equity for the majority stake.

Dubai Startup Funding

How to Start a Business in Dubai: Documents Required

Local municipal and government authorities must approve the start-up of a business in Dubai. It is easy to create a company structure. There are a few details and identification documents that you'll need to submit, along with the company's trade name.

ITQAN

will help you collect the documents you need for your application to be successful. A trade license application requires the following documents:

• The application form has been completed
• Copies of all shareholders' passports
• All shareholders' residence visas
• MEMORABILIA D'ASSOCIATION DE LA COMPAGNIE
• An article of association (AOA) of a company
• Referral letter for a bank account
• Personal bank account copies
• Bank account copies for corporations
• Plan of action for your business

Here are a few of the most noteworthy

government-sponsored innovations in startup financing:

1. Mohammed Bin Rashid Innovation Fund
The Mohammed bin Rashid Al Maktoum Fund to finance Innovation, was established by His Highness Sheik Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.
The fund supports residents and companies registered in the UAE, as long as they offer technological solutions, products, services, or processes that are unique and innovative. Applicants must establish the initial stage of their project before registering their project as intellectual property.

2. Innovation Impact Grant Programme
The Expo Live Innovation Impact Grant Programme aims to fund novel and innovative solutions that address its theme ‘Connecting Minds, Creating the Future’. On the maturity and scalability of innovations. The focus areas for funding will be opportunity, mobility and sustainability.
Several hundred government officials, innovators, international organizations, companies, entrepreneurs, NGOs, universities, and millions of attendees are expected to attend Expo 2020 Dubai, the first mega-event of its kind in the region.

3. Dubai SME
Small and medium-sized enterprises (SMEs), startups and established businesses can benefit from Dubai SMEs funding options and incubatory services. One of these programs is the Intelaq program, which provides startups and Emiratis with full support throughout the process of setting up a business in Dubai, including business licensing, training courses, financial support, legal advice, marketing and technical assistance.
It provides both hardware and software support through the Hamdan Innovator and Incubator (HI2). In addition to the software, Dubai SME has established an intellectual infrastructure with 500 companies, and the hardware has a size of 20,000 square feet. Approximately 60 companies can be accommodated in the 40,000 square feet of space. It also offers business development advisory services, a special lab for creating prototypes of products and inventions, a multimedia lab, 3D printers and more.
Dubai SME advises established businesses on business types, modes and categories of licensing, as well as conducting government procurements programs under which all Dubai government departments allocate at least 5% of their annual purchasing budget to buying from UAE nationals who own and operate SMEs.

4. Dubai Technology Entrepreneur Center (DTEC)
Dubai Silicon Oasis Authority initiated the DTEC initiative. For businesses, this is a hub for technology, innovation, and entrepreneurs. There is coworking space, accelerator programs, networking events, funding opportunities, and a range of creative meeting and events spaces available as well as 24/7 access, high-speed wi-fi, and visa processing. Funding is provided to early-stage technology companies in the MENA region that enable traditional industries to operate more effectively. Consumer internet, enterprise services, digital media, cloud computing, commerce, travel and leisure, EdTech and mobile are some of the sectors that are covered by the fund.

5. DIFC Fintech Fund
In an effort to accelerate fintech development and provide financial support to promising startups, the Dubai International Financial Center (DIFC), a special economic zone in Dubai and a financial hub for the Middle East, Africa and South Asia (MEASA) region, launched a Fintech. The DIFC Fintech Fund aims to stimulate fintech innovation and investment in MEASA by targeting startups with products or solutions that contribute to the financial services sector.

Is setting up a business in the UAE something you need help with? Contact us now.