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Home away from home: Why Indian startups are flocking to Dubai’s free zones

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Dubai’s free zones offer the perfect blend of tax benefits, regulatory ease, and access to global markets, making it the preferred choice for Indian startups and SMEs looking to scale beyond borders.
Home away from home: Why Indian startups are flocking to Dubai’s free zonesET Spotlight
“Dubai’s strategic location and business-friendly environment have been key to TENDERD’s expansion,” Arjun Mohan, Founder and CEO of TENDERD, tells EconomicTimes.com. “Its pro-business policies, infrastructure, and access to global markets have allowed us to scale quickly. The region’s commitment to digital transformation aligns with our artificial intelligence (AI)–powered platform, helping businesses optimise physical operations and sustainability.”
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Mohan says TENDERD, an AI-driven platform serving commercial and industrial fleets, aligns with Dubai’s push for AI-driven innovation and sustainability by cutting emissions, boosting efficiency, and reducing costs as the AI model makes equipment operations smarter, safer, and more sustainable.


Indeed, Dubai’s rise as a hub for dynamic businesses is well-known. Favourable factors such as its strategic location and pro-business policies are also well-documented. What is remarkable is that Indian enterprises continued to top the list of new non-Emirati companies joining the Dubai Chambers during the first nine months of 2024, with a tally of 12,142 new companies. This mirrors the growing relationship between the two countries, anchored in the Comprehensive Economic Partnership Agreement (CEPA) signed between India and the UAE.

In recent years, its free zones have emerged as a crucial catalyst for Indian startups and small and medium enterprises (SMEs) looking to scale internationally. With 100% foreign ownership, tax incentives, minimal bureaucracy, and world-class infrastructure, Dubai provides Indian entrepreneurs with a conducive regulatory environment to establish a global footprint. Among the sectors leveraging Dubai’s business-friendly policies and fuelling cross-border trade are fintech, AI, logistics, and e-commerce.

A tax haven for growth
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For Indian entrepreneurs, taxation is a crucial factor when considering international expansion. In India, businesses must navigate a heavy-duty corporate tax regime, an exhaustive goods and services tax (GST) framework, and a heavy compliance burden that often creates entry barriers to trade. Dubai’s free zones, on the other hand, offer a stark contrast—zero personal income tax, full profit repatriation, and no customs duties on imports and exports.

The UAE offers investors more than 40 multidisciplinary free zones, with Dubai alone being home to more than 20, underscoring its significance. According to the United Arab Emirates Ministry of Economy, these zones are characterised by their world-class infrastructure, facilitating smooth workflows and saving businesses considerable time and effort.

The Dubai Free Zones Council (DFZC) affirmed the strong performance of Dubai’s free zones in 2024, attributing this success to economic diversification and innovation, as cited in Emirates News Agency - WAM.

Removing the red tape: The ecosystem of free zones
Dubai’s free zones offer an alternative to traditionally lengthy bureaucratic processes. With a digital-first approach, company registration in Dubai can take as little as five days. Free zones provide end-to-end support, covering everything from licensing and visas to office space and banking solutions. Additionally, Indian entrepreneurs can hold 100% ownership of their businesses without requiring a local sponsor.

Free zones such as the Dubai International Financial Centre (DIFC) also provide legal frameworks that facilitate smooth cross-border investment deals. Indian entrepreneurs can access funding, strategic mentorship, and partnerships to fuel their global ambitions without facing restrictive foreign investment regulations.

A gateway to global trade and logistics
Dubai’s world-class logistics and connectivity make it an ideal hub for Indian SMEs seeking access to the Middle East and North Africa (MENA) region and Europe.

In a testament to Dubai’s prowess as a global logistics hub, Dubai’s Jebel Ali Port, the largest port in the Middle East and one of the busiest in the world, operated by DP World, serves as a crucial gateway for trade between East and West, while Dubai International Airport (DXB), links over 200 destinations globally, enhance the UAE’s role in the global supply chain. Together, they are part of its dynamic logistics ecosystem.

Indeed, surrounding Jebel Ali Port, Jebel Ali Free Zone (JAFZA), one of the largest free zones in the world, houses many thousands of companies, manufacturers, traders, and exporters from all over the world and it alone contributes about 24% of the total foreign direct investment (FDI) flow into Dubai. Connecting Jebel Ali Port, Al Maktoum Airport, and surrounding logistics zones, the Dubai Logistics Corridor enables rapid transport and distribution of goods, offering a significant advantage to UAE’s logistics stakeholders.
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Meanwhile, Dubai Multi Commodities Centre (DMCC) is home to 25,000 companies ranging from startups to multinational corporations, emerging as a popular choice for Indian enterprises and SMEs aiming to expand globally. For companies in manufacturing, e-commerce, and supply chain management, Dubai’s free zones provide a cost-effective platform for global trade.

“Dubai’s advanced logistics ecosystem, including ports, free zones, and smart trade initiatives, has accelerated Fero.AI’s growth,” explains Abhinav Chaudhary, CEO and Founder of Fero.ai. “Seamless connectivity, strong government support, and digital-friendly regulations have enabled us to integrate AI solutions efficiently, optimising freight and logistics operations.” Fero.ai is an AI-driven platform providing automation solutions for the logistics sector.

Tech and innovation economy: What’s working for Indian startups
Dubai’s vision for AI, fintech, and digital transformation has positioned it as a magnet for Indian tech startups. Free zones such as Dubai Internet City and Dubai Silicon Oasis provide subsidised office spaces, R&D support, and funding opportunities tailored to deep tech, software as a service (SaaS), and blockchain ventures.

By 2028, the UAE is projected to rise as a premier fintech hub, with fintech firms expected to soar to 7,100—a 1.8-fold increase. At the Dubai Fintech Summit 2024, hosted by the DIFC, policymakers affirmed the Dubai Economic Agenda D33’s strategic goal of propelling Dubai into the ranks of the top four global financial hubs by 2033.

Against this backdrop, Indian startups in digital payments, AI-driven analytics, and blockchain are finding fertile ground in Dubai’s innovation ecosystem. Government-backed accelerator programmes, including Dubai Future Accelerators, connect Indian tech startups with investors, enterprises, and regulatory support systems. “Dubai’s vision for AI, automation, and smart logistics has shaped Fero.AI’s strategic direction,” adds Chaudhary. “Government-led initiatives such as Dubai’s AI Strategy and smart logistics frameworks have created a fertile ground for innovation, allowing us to develop automation solutions tailored for modern logistics and supply chain operations.”

The future of Indian entrepreneurship in Dubai
For Indian startups looking to raise capital, Dubai’s growing venture capital (VC) and private equity ecosystem is another major draw. With over 70 VC firms and angel networks, Dubai is actively investing in high-growth sectors such as fintech, AI, and SaaS. Indian companies represent more than 30% of Dubai’s innovation-driven startup community. Replace with - Indian companies make up a significant portion of Dubai’s innovation-driven startup ecosystem.

Government collaborations between India and the UAE are further expected to streamline market access and investment opportunities. Experts opine that AI and SaaS startups will see exponential growth as Dubai pushes its digital economy agenda.

“Dubai isn’t just a regional hub; it’s a gateway to global growth,” concludes Mohan. “Leverage free zones for easy setup, tap into the local talent ecosystem, and align your business with the region’s innovation goals. Dubai rewards businesses that think big and move fast.”

For Indian AI and logistics entrepreneurs looking to expand into Dubai’s thriving business landscape, Chaudhary suggests that before expanding in the Middle East, founders should focus on building local partnerships, understanding compliance frameworks, and embracing Dubai’s tech-driven logistics vision that will be key to success in this thriving market.

As Dubai cements its status as a global innovation hub, Indian startups will continue to find new opportunities in its dynamic economy.

Click this link for more on Business in Dubai.

Disclaimer - This article is a part of a featured content series on Business in Dubai.
(This article is generated and published by ET Spotlight team. You can get in touch with them on etspotlight@timesinternet.in)
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