This archive report was first published on 3 October 2019.
Published on October 3, 2019, Dubai has made significant strides in creating a business-friendly environment, attracting foreign direct investment (FDI) and positioning itself as an investment hub for entrepreneurs from around the world.
The Dubai government has established various entities, including the Dubai Chamber, the Dubai International Financial Centre, the Dubai Startups Hub, and the Dubai Future Accelerators, which create an attractive environment for startups. These organisations offer training and mentorship programmes, helping connect startups with potential investors and markets.
According to Omar Khan, the director of the International Office at the Dubai Chamber, 20 per cent of government tenders are set aside for small enterprises. The city has also waived property registration fees and reduced municipality fees to help startups get off the ground or expand their market reach.
These incentives have helped shore up FDI in Dubai, with the city attracting 257 FDI projects in key sectors, most notably in knowledge and technology, in the first half of 2019. These investments injected 46.6 billion dirhams (over Sh1.3 trillion) into the Dubai economy, a growth of 135 per cent compared to the same period last year.
Hamdan bin Mohammed, the Crown Prince of Dubai and Chairman of the Executive Council, stated that Dubai was particularly successful in attracting advanced technology and specialised talent. "With the growth of talent and technology, Dubai will accelerate its drive to become the smartest and most sustainable city of the future,” he added.
However, despite the opportunities available, Muhammed Mekki, the founding partner of Astrolabs, notes that lack of awareness in Kenya and Africa of the available opportunities in Dubai has meant that very few startups make use of the free zones.
Facilities like the Dubai Multi Commodities Centre (DMCC) can help address the challenges faced by Kenyan farmers, such as lack of market for their produce and exploitation by middlemen. The DMCC has a tea centre that handles 53 million kilos of tea produce annually.
