Expo 2020 has set the pace for entrepreneurship in the UAE
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Expo 2020 has set the pace for entrepreneurship in the UAE
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By Naam Chakravorty, Gulf Analyst, and Saniya Syeda, Research Analyst, Botho Emerging Markets Group
August 23, 2022
The UAE's entrepreneurial culture has evolved to be more socially conscious, with the country's policymakers extending long-term stability to entrepreneurs, including those with a higher risk appetite. Most recently, the UAE used the mega-event Expo 2020 to rekindle the spirit of entrepreneurship in the nation, while keeping a keen eye on how to build an infrastructure that can make the government an effective ally in supporting the growth of entrepreneurs.
The UAE government accomplished this by launching entrepreneur-focused programs, such as Expo 2020 Live, which identified and funded problem-solving innovations from around the world. It also provided grants to students, enabling the country's future generation of entrepreneurs and innovators to conduct groundbreaking research. These efforts will ensure that the government not only focuses on the present startup ecosystem but also shapes future entrepreneurs in its efforts to boost the economy.
Additionally, the Dubai Chamber of Commerce and Industry (DCCI) played a large role in facilitating dialogue between businesses during the event. At Expo 2020, the DCCI hosted 98 events attended by more than 25,000 people from over 130 countries. These events provided existing and emerging entrepreneurs, including those considering establishing a presence in the region, with an understanding of how the UAE is successfully positioning itself as a commercial hub. Since the completion of Expo 2020, the UAE government has seen an influx of 3,200-plus new businesses seeking to set up shop in Dubai. Moreover, 76 percent of existing businesses reported growth in revenue, and 73.5 percent established new business partnerships during the mega event.
Three months after Expo 2020, the UAE has introduced policies to nurture startups in the region. The government is actively addressing barriers to growth for existing businesses as well as new entrepreneurs looking to set up. Even the Expo site, now known as District 2020, was designed to grow into a sustainable urban community with the goal of cultivating an innovation-driven business ecosystem. Dubai and District 2020 will serve ambitious global enterprises wishing to expand to the Middle East, Africa, and South Asia (MEASA) regions and gain access to global markets. In addition, District 2020’s "Scale2Dubai" program also seeks to help small businesses and startups scale in Dubai and the MEASA region. The initiative makes it easier for a startup to grow by removing hurdles like residency (by providing a two-year visa for free) and administrative logistics and expenses (by providing set-up assistance). The government has already taken the first steps towards this—Scale2Dubai will welcome its first cohort of 85 startups and small enterprises to live and work in the post-Expo 2020 Dubai neighborhood. In addition, the program will also be partnering with accelerators, incubators, chambers of commerce, and SME authorities in various countries to help their networks of startups and small businesses scale and go global.
The government is also addressing concerns with regard to long-term residency in the country since the majority of companies and entrepreneurs thinking about moving to the UAE understand that the government does not yet offer permanent residency status. For instance, the UAE's Golden Visa policy enables high-potential individuals and their families to settle in the UAE easily with two types of residency permits. Skilled professionals, freelancers, and entrepreneurs who are currently in the country or running their operations in the UAE and have self-employment income from the past two years of at least AED 360,000 (approximately US$ 100,000) can access a “five-year green visa”. The other option, the "10-year visa", is accessible to entrepreneurs and investors who have made a minimum investment of AED 1 million, or about US$ 272,254 or are skilled professionals with a minimum salary of AED 30,000. This helps individuals already living and/or working in the country to realize their business ideas to their full potential. Additionally, through this visa, entrepreneurs will have an easy avenue to interface with local investors and access regional and international markets such as Europe, Asia, and Africa.
Finally, given that the Expo 2020 initiatives and legacy projects will continue to bring new investors and entrepreneurs into the country, the UAE government has announced the refurbishment of the Expo 2020 village. The sprawling residential community will house world-class living facilities adjacent to District 2020, where Dubai will host startups and global tech firms such as Siemens.
Together, these initiatives will ensure that incoming entrepreneurs and investors have an end-to-end business environment by addressing their long-term settlement concerns. The UAE government’s multi-pronged efforts will bolster not only the entrepreneurial economy, but also a sustainable business ecosystem and a solid work-life balance, ensuring long-term stability for entrepreneurs.
Naam Chakravorty is a Gulf Analyst, and Saniya Syeda is a Research Analyst at Botho Emerging Markets Group