Starting a business during a recession can seem daunting, and when you introduce a pandemic in the mix, even more so. Entrepreneurs can face uncertainty, job losses, and cash flow attacks that can threaten to collapse business. However, there is a flipside. Starting a business during a downturn can also help you avoid some of the common roadblocks faced by new business, and maximise your potential when the economy inevitably picks back up. Here are a few reason new businesses in the UAE can thrive in the current situation.
The UAE is also making more efforts to cater to expats and tourists with its newly introduced changes to civil laws. These include legalised cohabitation between unmarried couples, decriminalisation of alcohol, and changes to inheritance laws that aim to appeal to more expats and boost the economy.
To stimulate the economy, the UAE has waived off many fees for new businesses and SMEs, which makes business registration cheaper than ever. Banks in Abu Dhabi, for instance, are offering a reduction on the mandatory minimum balance for SME accounts. Additionally, Dubai Economy has created an enticing environment for investors by developing its business registration and licensing services. The government is making efforts to promote a sustainable, knowledge-based economy across various fields and activities. Over 17,000 new business licenses have been issued in the UAE in 2020, and the no-tax policy is a huge help.
Competitive ad rates
Getting your brand noticed does not have to cost an arm and a leg anymore – declining advertising rates and increasing web traffic actually create the perfect opportunity for effective and low-cost advertising. According to Nielsen & Global Web Index, mobile app and web traffic has shown a 55% spike during the pandemic, which translates to more potential customers exposed to your business. Gulf News numbers have shown that page views in March 2020 increaser by 14x when compared to March 2019.
The best of the market
With people facing job-losses due to Covid, the UAE’s talent pool is flowing with abundance. Recruiting the best and the brightest for your business is more than just a possibility. Fields such as IT, support, and design can also employ remote workers for a safer and affordable option.
Looking to open up your business but worried about the risks? A way that foreign entrepreneurs can take advantage of the UAE’s benefits is by getting a license through ADGM. ADGM licenses support cross-border activities, allow 100% foreign ownership, and follow English Common Law. In order to protect your assets, Sanctuary can provide you with an ADGM Special Purpose Vehicle (SPV) to make you the ultimate business owner and give you 100% control over your business. Choosing this option minimizes your risk and leaves your business secured. Get in touch with our experts to find the best way to start and secure your dream business.