The UAE, in recent years, have set ambitious strategies to modernise its economy – with a huge focus on becoming a global business hub attracting both firms and talent
The recent move of the UAE government to ease bureaucratic red tape for digital businesses makes sense in a fierce global competition to attract them, the Middle East head of global law firm Reed Smith said.
Last week, the government announced “NextGenFDI,” particularly to attract more digital businesses to set up in the country.
“Digital technologies are unique and have unique needs. Their B2B and B2C interactions are fast, fully personalised and highly integrated,” Sachin Kerur told Arabian Business.
He said the “operational pace and demand” in the digital ecosystem requires a progressive regulatory environment, “the last thing digital business can afford to happen, is to be mired in a carpet of red tape,” Kerur explained.
A recent KPMG survey listed 10 major cities as the most attractive tech hubs in the world – including Bengaluru in India, Tel Aviv in Israel, and Shanghai in China.
These “innovation hubs” had several characteristics in common such as proximity to a research-intensive university and access to a vibrant lifestyle to particularly target young professionals.
The UAE, in recent years, have set ambitious strategies to modernise its economy – with a huge focus on becoming a global business hub attracting both firms and talent.
“Countries across the world are rolling out digital business focused business law reforms so the fact that the UAE is serious about implementing practical measures that make a difference, will help the UAE maintain a top destination for digital business,” the Reed Smith lawyer said.
The NextGenFDI program, which included a set of provisions that provides fast-track visa and licensing incentives, have been met with positive reactions from other industry players.
UAE perfect access to growing consumer market class
“The initiative comes in the wake of multiple other initiatives that demonstrate the government’s unwavering determination to build a future-focused, technology-driven economy,” Ramesh Jagganathan, managing director of Abu Dhabi accelerator startAD, said.
He said businesses in the UAE could also benefit to a growing consumer class in the India, China, Africa corridor, with over three billion by 2030.
“There is an opportunity to ride the wave of India and China’s growing global tech ecosystem by becoming dominant in the global entrepreneurial economic landscape,” he told Arabian Business.
He added: “Buoyed by favourable regulations and the ease of doing business, backed by the support of corporates who also wish to innovate and transform their sectors, this is a historic opportunity to serve a frontier market the size of Europe and North America.”
The move also comes as inward FDI has been gaining traction in recent years, PRO Partner Group chief executive officer Nazar Musa, said.
“One of the main drivers has been the reduction in cost and red tape to allow companies to set up in the UAE faster and cheaper, and the new visa regime is a huge incentive for tech professionals, investors, entrepreneurs and businesses to look closely at the possibilities to set up a base or operations in the UAE,” he said.
The government has also seen “incredible standard of living, security, and infrastructure for families,” which Musa said also contributes to growing foreign investments in the country.
“We have already seen a significant uptick in inward FDI since the first initiatives were announced in 2021, more tech and digital companies setting up over the period, and particularly we have seen a number of multinationals in this sector start to relocate significant resources and staff to the UAE,” he said.
SOURCE: arabianbusiness.com