2023 DUBAI

BUSINESS SET UP
GUIDE
Ultimate guide to set up, operate and expand
your business in Dubai
2023 Dubai Business Set up Guide

Starting a business in Dubai has

always been an attractive prospect
for investors, particularly in 2023 –
here’s why.
Low cost of living
Dubai ranked #31 in Mercer’s Cost of Living Survey for 2022, below
some of the world’s major expat hubs like Hong Kong (#1), Tel Aviv
(#6), New York (#7), Singapore (#8), and London (#15).

Lowest levels of inflation worldwide

With the new price freeze campaign implemented by the UAE
government, the UAE has one of the lowest levels of inflation
worldwide, making it an attractive destination for businesses and
investors.

 Monetary stability
The UAE dirham is pegged to the US dollar, which provides monetary
stability for traders and businesses.

 Tax exemptions
The UAE has signed 137 Double Taxation Treaties, providing
businesses with the opportunity to benefit from tax exemptions and
reduced taxes.

With the many advantages of doing business in Dubai, it is no wonder why

it is becoming an increasingly popular place for entrepreneurs to set up
their business. We’ve simplified the set up process with a guide that covers
everything from the company incorporation process, cost of company set
up, important government legislation, obtaining capital, as well as countless
opportunities to expand your business and network effectively in Dubai.

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SECTION 01

Setting up your business in Dubai

DIFFERENCES
BETWEEN
FREE ZONE VS.
MAINLAND
2023 Dubai Business Set up Guide

Once you have chosen Dubai as the

location for your new business, it’s time
to begin the process of setting up your
company.
The first step is to make the decision on whether to set up your
business in Dubai mainland or one of the free zones. Mainland
companies are registered with the Department of Economic
Development in each UAE emirate. On the other hand,
entrepreneurs can choose to register their company in one of
over 20 free zones in Dubai. Here are some of the differences
between the two options.

FREE ZONE MAINLAND

COMPANY COMPANY

FOREIGN 100% foreign ownership on 100% foreign ownership on

OWNERSHIP all business activities selected business activities

CORPORATE Free zone businesses A corporate tax rate of

TAXES remain fully exempt from 9% for taxable income
the corporate tax unless exceeding AED 375,000.
they conduct business in This remains one of the
the mainland for which lowest in the world.
they will be subject to 9%
taxable income exceeding
AED 375,000. This remains
one of the lowest in the
world.

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2023 Dubai Business Set up Guide

FREE ZONE MAINLAND

ENTITY COMPANY

REPATRIATION 100% repatriation of 10% of profits every year

OF PROFITS profits. (subject to a maximum of
50% of capital) have to be
transferred to a Statutory
Reserve.

IMPORT DUTY Exemption from all import 5% on most products;

and export duties within however, many are exempt.
the free zone. Alcohol is 50% while
tobacco products have a
100% customs duty.

TRADE Allowed to trade within Allowed to trade

RESTRICTIONS the free zone and throughout the UAE and
internationally. Trade within internationally.
the UAE is possible through
a local agent/distributor.

EMPLOYEE No restrictions on hiring Legally obliged to

LAWS foreign employees. possess a minimum
2% of UAE nationals to
compromise the workforce
of companies with 50 +
employees.

VISA Setting up your company Your local service agent

REQUIREMENTS in a Dubai free zone must apply for your visa
automatically makes you for you.
eligible for a visa. Visa
costs differ per free zone.

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2023 Dubai Business Set up Guide

DMCC
ADVANTAGES
Location Credibility, reputation
DMCC is located in the heart Over 22,000 companies trust
of Dubai. DMCC with their business set
up.
Learn More 

Variety of offices Company set up

From full floors of fully structures
equipped offices to virtual DMCC offers four types
desks – whatever your of set up structures: New
particular requirements, Company ( Individual,
DMCC offers a wide range of Partnership, Joint Venture,
options and the flexibility to Subsidiary), Branch, Transfer
meet your business needs. of Incorporation (Re-
domiciliation).
Learn More 

Business activities Size of the free zone

DMCC provides over 1000 22,000+ member companies,
business activities and three 87 towers, 80,000+
types of licences: Trading, employees, 100,000+ people
Services, and Industrial. living in the community.

Ease of business set Speed of business set

up up
DMCC offers a 100% digital Average of two weeks.
and paperless setup process,
with dedicated support all
throughout.

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2023 Dubai Business Set up Guide

Business centres and Partner network

coworking centres Supporting member
DMCC is operating various companies with partnerships
business centres and in insurance, banking,
coworking spaces. customs consultancy and
many more.
Learn More 

Connectivity Community
DMCC is located along the Discover the Neighbourhood
Sheikh Zayed Road. Full of Soul - Jumeirah Lakes
Dubai is connected through Towers.
major road, air and sea ways.
Learn More 

Events and education Value added services

Discover our business and DMCC members value added
community events. services.
Learn More  Learn More 

Living in DMCC / JLT Compliance

• Parks DMCC Compliance Hub.
• Lakes Learn More 
• Running tracks
• Sports courts
• Children’s playgrounds
• 460 Cafes, restaurants
and hotels
• 324 Fitness and beauty
locations
• 297 Retail and
convenience stores
• 179 Education and
childcare centre.
Learn More 

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2023 Dubai Business Set up Guide

STEP BY STEP
PROCESS TO SET UP
YOUR BUSINESS IN
DUBAI

1 CHOOSE YOUR FREE ZONE OR MAINLAND

There are over 20 free zones in Dubai to choose from. The nature
of your business plays an important role to determine which free
zone you choose. Some Dubai free zones offer generic activities
for all industries, whilst others are sector specific. For instance,
Dubai Media City and Dubai Production City are free zones that
specialise in content and media production.

DMCC’s business activities span a wide range of industries, from

trading and professional services to crypto, blockchain and Web3,
gaming, e-commerce and more. It is also important to consider the
types of licences, facilities and services available in each free zone
when choosing the best option for your business.

2 CHOOSE YOUR COMPANY NAME

Naming your business is an important process. You can save time
and effort by consulting an expert to help you follow the UAE
naming conventions and get your name approved. When choosing
your business name, it’s important to ensure you refrain from
names that include offensive language or can be perceived as
offensive to religion or referred to political groups.

Please refer to each licensing authority’s guidelines for

! company names to ensure that your proposed company
name is compliant.

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3 DECIDE YOUR BUSINESS ACTIVITY
A wide range of business activities​are available to choose
from, all falling into different groups within the industrial,
commercial, professional, trading and service sectors.

4 APPLY FOR INITIAL APPROVAL

It is mandatory to apply for initial approval to ensure that
the Dubai DED has no objections to you starting a business.
However, this does not apply to free zones and offshore
business set up. You can apply online, in person or through
a third party (for example through a law firm).

5 OPEN A CORPORATE BANK ACCOUNT

Once you’ve been approved and received all the necessary
documents, you can now open a corporate bank account. The
UAE has many banks, both local and international, to choose
from. These include HSBC, Citibank, Standard Chartered, Abu
Dhabi Commercial Bank, Commercial Bank of Dubai, Mashreq,
WIO and many more.

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2023 Dubai Business Set up Guide

DMCC’S BUSINESS
SET UP TIMELINE
1 EXPRESS YOUR INTEREST
Decide on your licence type and business activities. After your
query, DMCC’s representative will create and send you access to
your unique portal account, so you can start the online application.

2 SUBMIT YOUR ONLINE APPLICATION

Complete the form and submit your application. DMCC will
complete the company name reservation, management and
compliance approval.

3 PAY, SIGN & SUBMIT YOUR DOCUMENTS

Next, pay the registration and licence fees and sign the legal
documents. DMCC will issue a provisional approval and bank
letter (to provide assistance in the process of opening a
company bank account).

Company set up can be done from anywhere in the

! world with our fully digital process. Easily start your
business in Dubai without having to visit DMCC.

4 CHOOSE YOUR SUITABLE OFFICE SOLUTION

Finally, sign and submit the relevant documents for your new
office space. DMCC will issue your E-Licence, so you will be
ready to do business in DMCC.

*The 10-day timeline excludes the corporate bank account set

up, which is not controlled by DMCC.

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2023 Dubai Business Set up Guide

BUSINESS SET UP
Simple Documentation Requirements at DMCC

Online pre-approval Copy of your passport

application form Along with your UAE residence visa
and a copy of your Emirates’ ID if
applicable.

Proof of residential address Details of an office address

in country of residence in DMCC free zone (JLT)
Proof of residential address in country Required after your company has
of residence. been registered.

Third-party approvals for Copies of parent company

certain regulated business documents
activities Required if setting up a subsidiary.

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2023 Dubai Business Set up Guide

COST TO SET UP
YOUR COMPANY
IN DUBAI
Regardless of whether you’ve chosen to open a
company in Dubai’s free zones or the mainland, here are
the main costs you will incur during your set up process:

COMPANY REGISTRATION FEE

The company registration fee is a one-time payment to the free
zone authority at the early stages of registering your company.
The exact fee will be determined according to the company’s
legal structure, and of course, the chosen free zone.

LICENCE FEE
​​
The licence fee will depend on the business licence type you
choose. The three most popular business licence types are for
trading, services and industrial sectors. Unlike the company
registration fee, the licence fee is a recurring cost.

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2023 Dubai Business Set up Guide

OFFICE FEE
To do business in Dubai, you must have a physical address.
Each free zone in Dubai offers a number of physical offices
with desk spaces to fit your business needs, including serviced
offices, co-working spaces and flexi desks.

SHARE CAPITAL
The minimum share capital amount differs significantly for
each free zone and can range from as little as AED 1,000 to as
much as AED 1,000,000 depending on the business activities,
type of licence, and whether the business operates in free
zones or the mainland. Generally, the average share capital
requirement for free zones in Dubai is set at AED 50,000.

13
2023 Dubai Business Set up Guide

BREAKDOWN OF THE COST TO

SET UP YOUR COMPANY IN DMCC

REGISTRATION & LICENCE FEES

INITIAL APPLICATION FEE AED 1,035

REGISTRATION FEE Trading AED 9,020

Service AED 20,285

LICENCE FEE*
Trading AED 20,285

ARTICLES OF ASSOCIATION (AOA) AED 2,020 one-time

ESTABLISHMENT CARD AED 1,825 annual fee

* This cost may vary based on the licence type and activities that you choose for your company.

You can explore our set-up packages here catered to all types of businesses here:
https://www.dmcc.ae/business-setup-package

OFFICE SPACE COSTS

FLEXI DESK From AED 16,800 Annually

SERVICED DESK From AED 25,500 Annually

SERVICED OFFICE From AED 35,000 Annually

Approximately
PHYSICAL OFFICE/SQFT
AED 60 per sq/ft

* All lease prices are exclusive of deposits and administrative fees.

SHARE CAPITAL

MINIMUM SHARE CAPITAL PER COMPANY AED 50,000

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2023 Dubai Business Set up Guide

DMCC: ALL INCLUSIVE

BUSINESS SET UP PACKAGES

Starting from: AED 43,780*

JUMP START PACKAGE

Ideal for startups, SMEs and entrepreneurs

INCLUDED PLUS
 DMCC company licence  Up to 24% discount on your DMCC
company set up fees
 Establishment card
 Standard flexi desk or co-  Pay in two instalments
working space (for up to three  Secure new business with the
resident visas) DMCC business matching hub
 Company stamp &  Priority access to networking
commemorative certificate events
 One UAE residency visa  One, two and three-year package
included. options available

 Low corporate tax and 0%

personal income tax

 100% business ownership and

capital repatriation

 Well-connected to local and

global markets

 100% digital and paperless

company set up process.

* Includes standard flexi desk. Limited time offer. Advance payment required in full.

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2023 Dubai Business Set up Guide

Starting from: AED 38,145*

PRIME PLUS PACKAGE

Created for medium and large companies

INCLUDED PLUS
 DMCC company licence  Discount on company set up fees

 Establishment card  Pay in two instalments

 Company stamp &  Fast track company set up

commemorative certificate
 Extended provisional approval
 Operational fitness certificate. validity

 Dedicated support with the

application submission

 Guaranteed price freeze on licence

renewal

 Add shareholders, directors, and

licence activities without any
additional charges

 20% discount on additional

business activities and licence

 Secure new business with the

DMCC business matching hub

Save up to AED 10,000 on

 additional services*

Low corporate tax and 0%

 personal income tax

100% business ownership and

 capital repatriation

100% digital and paperless

 company set up process.

* Limited time offer. Advance payment required in full.

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2023 Dubai Business Set up Guide

Starting from: AED 35,484*

BASIC BIZ PACKAGE

Ideal for individual entrepreneurs

INCLUDED PLUS

 DMCC company licence  Low corporate tax and 0%

personal income tax
 Establishment card
 100% business ownership and
 Company stamp &
capital repatriation
commemorative certificate
 Access to industry and networking
 Special flexi desk offer (eligible
events
for one resident visa)
 Well-connected to local and
 Tailored package for individual
global markets
shareholders (not for branches
and subsidiaries).  100% digital and paperless
company set up process.

* Limited time offer. Advance payment required in full.

Starting from: AED 29,185*

JLT RESIDENT PACKAGE

Designed exclusively for JLT residents

INCLUDED PLUS
 DMCC company licence  Special flexi-desk option

 Most affordable package  Low corporate tax and 0% personal

in DMCC (exclusive for JLT income tax
residents).
 100% business ownership and
capital repatriation

 Access to industry and networking

events

 Well-connected to local and global

markets

 100% digital and paperless

company set up process.
* Limited time offer. Advance payment required in full.

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SECTION 02

Labour Laws & Regulations

UAE LABOUR LAWS

& REGULATIONS IN
2023
The UAE Labour Law determines the labour rights of
employees in Dubai’s private sector. Here is a breakdown
of the critical things you need to know about it.
2023 Dubai Business Set up Guide

WORKING MEDICAL
HOURS & LEAVE INSURANCE
ENTITLEMENT
In the UAE, it is mandatory
for all employers to
Working hours cannot provide sufficient medical
exceed 48 hours per insurance for employees.
week Insurance coverage must
include:

Working hours are

reduced by two Cover for urgent and
hours per day during non-urgent care
Ramadan

Tests, treatments,
Overtime must not and examinations.
go over two hours per
day

Employees must be
granted two days of
leave per month.
(After six months of service
and 30 days per annum
after one year)

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2023 Dubai Business Set up Guide

2023 UPDATE - UNEMPLOYMENT

INSURANCE SCHEME
The UAE has introduced Upon unemployment,
an unemployment residents will be eligible
insurance scheme to to receive 60% of their
protect those who lose base salary of up to AED
their jobs. 20,000 per month.

UAE residents will A maximum period

contribute AED 40 to of three months
AED 100 annually into following the date of
an insurance scheme. unemployment.

The scheme is The scheme is

mandatory for all irrespective of
employees in the private nationality with
and public sectors the exception of (i)
who are employed by investors; (ii) temporary
employers based in employees; (iii) juveniles
mainland UAE while it’s under the age of 18; and
optional for free zone (iv) pension receiving
employees. retirees who have
restarted employment.

Reference - Al Tamimi & Company

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2023 Dubai Business Set up Guide

HIRING FOREIGN EMPLOYEES IN

DUBAI
Businesses in Dubai are eligible to hire foreign professionals under the
condition that they must sponsor all foreign employees’ work visas
and residency permits in Dubai. The limit to the number of visas that
can be issued depends on the size of your office space and will vary
depending on each free zone in Dubai. For DMCC, it is as follows:

OFFICE SPACE* VISA QUOTA

FLEXI DESK Up to 3 visas

3 or 5 visas (depends on the size of the

SERVICED OFFICE
serviced office space)

PHYSICAL SPACE 1 visa for every 9 square metres

*Clients may be permitted to apply for an increase in their visa quota.

END OF SERVICE
PAYMENTS
Provided that an employee has worked for over a year under a full
time contract, he/she will be entitled to end of service gratuity
(ESG) payments upon termination. Payments are calculated based
on salary and duration of employment.

For example:
• 21 days pay for each year of service for up to five years
• 30 days pay for each year of service beyond five years.

End of Service Payments cannot exceed the two years’ salary.

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SECTION 03

OPPORTUNITIES
TO EXPAND YOUR
BUSINESS IN DUBAI
Dubai has long been a destination for entrepreneurs seeking a wide
range of business opportunities. The latest 2023 MAGNiTT report
confirms this, revealing that the MENA region (Middle East and
North Africa) has seen a steady 8.3% annual growth in funding for
startups, despite the ongoing economic challenges faced globally. The
abundance of opportunities, combined with a supportive business
ecosystem, make Dubai an attractive destination for entrepreneurs
looking to start or scale their businesses.
2023 Dubai Business Set up Guide

BUSINESS INCUBATORS
AND ACCELERATORS
Dubai boasts an impressive share of accelerators and incubators.
Incubators and accelerators services consist of:

Business support
(legal & accounting support)

Funding opportunities

Mentoring

Networking opportunities

Office space

AstroLabs Dubai
Astrolabs Dubai is a prominent business incubator and
accelerator located in the DMCC. As the first tech hub in
partnership with Google in Dubai, it offers a range of resources
and support for entrepreneurs and startups, including:

• Coding facilities for programmers

• Mobile device development lab
• Training room to host AstroLabs Academy workshops in a
range of different areas including analytics, big data, adwords,
digital marketing, UX/UI design, startup development and
many more.

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2023 Dubai Business Set up Guide

Nook
Nook provides a range of flexible workspace solutions in the heart
of one of the world’s fastest-growing business hubs. It provides
members with a space to work, collaborate, and connect with
other professionals.

What sets Nook apart is its exclusive partnership with DMCC,

offering members of its co-working space access to unparalleled
benefits. These benefits include visa processing, business set up
and renewal services, and more.

DMCC Crypto Centre

The DMCC Crypto Centre is a world-class, purpose-built facility
located in the DMCC. It offers a range of services and support to
businesses operating in the crypto, blockchain and Web3 space,
such as regulatory advice, access to capital, mentorship and many
more. It provides a secure, reliable, and regulatory compliant
environment to launch and grow crypto businesses.

DMCC Gaming Centre

The DMCC Gaming Centre in Dubai is a hub for the gaming
industry, offering a range of services from gaming-related business
registration and licensing to industry events and networking
opportunities. It is designed to provide the necessary support for
gaming businesses to launch and grow.

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2023 Dubai Business Set up Guide

Dubai Future Accelerators

Dubai Future Accelerators is an initiative of the Dubai Future
Foundation that encourages collaboration between the public
and private sectors to develop innovative solutions for global
challenges. The programme provides mentorship and resources
to Startups, entrepreneurs, and innovators to create disruptive
solutions to address challenges in the areas of education,
transportation, energy, health, and more.

Area 2071
Area 2071 is a large space that consists of workspaces, event
halls, educational labs and all the resources needed to bring out
the best in talented individuals. People from all walks of life come
together to benefit from the tools and opportunities available and
create strategic collaborations.

Dubai Angel Investors

DAI is member-managed and comprises over 100 investors that
come together to bring their ideas to life. They typically invest
in promising early-stage technology companies and help by
providing capital to support growth.

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2023 Dubai Business Set up Guide

OBTAINING CAPITAL
THROUGH BANK LOANS
IN DUBAI
Obtaining sufficient capital to finance your new business is a
crucial step towards setting up a business in Dubai. You may
opt to apply for various types of business loans. Securing
funding is an important step towards successfully starting a
business in Dubai and ensuring its survival.

Eligibility criteria for

applying for a business loan
The specific eligibility criteria to apply for a business
loan will differ from bank to bank in the UAE.

However, all banks have these minimum requirements:

• The business must be running for at least two years
• Minimum annual turnover (amount varies per bank)
• Business or personal bank statements for the last 6
to 12 months.

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2023 Dubai Business Set up Guide

Choosing which type of

business loan to apply for

A STANDARD BUSINESS LOAN

• Fixed monthly repayments over an extended period of time
• Payment terms are typically fixed unless the loan is under a
variable rate.

FRIENDS AND FAMILY LOAN

• Directly approaching friends and family for a loan
• Payment terms are more flexible and can be amended easily.

CREDIT CARD LOAN

• In the form of advance funds through a credit card
• Typically charges very high-interest rates, approximately up
to 3% monthly.

SMALL BUSINESS ASSOCIATION (SBA) BACKED LOAN

• Supported by the government
• This is a good option when your bank loan applications have
been unsuccessful
• If payment terms are not met, the government may impose
harsh penalties.

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2023 Dubai Business Set up Guide

Islamic finance in Dubai

Islamic Finance refers to all the financial
activities and investments that are compliant
with Sharia, which is the term for Islamic Law.

Some of the core principles under Islamic

Finance include:
• It is forbidden to earn interest through the
lending or borrowing of money
• Money must be earned through legitimate
trade and investment of assets
• Money must be spent in productive ways.

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2023 Dubai Business Set up Guide

Documentation
requirements
Preparing the necessary documents to get a business
loan in advance can streamline the application process.

Here are the common Apart from the necessary

documents banks require when document, it will be helpful to
applying for a business loan: have the following additional
documents on hand as well:
• Bank statements from the
past 6-12 months • Owners Home Residence
• Completed bank application Tenancy Contract or Sharing
form Accommodation Letter
• Article of Association • High Volume Transaction
/ Memorandum of invoices
Association (MOA) / • VAT Certificate
Power of Attorney (POA) / • Audit Report
Partnership agreement • List of employees obtained
• Copy of your trade licence from Ministry of Labour
and the original document • Lading Bill (if applicable)
for validation • Trade Licence.
• Copy of loan applicant’s
passport.

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2023 Dubai Business Set up Guide

NETWORKING
OPPORTUNITIES
Dubai is full of entrepreneurs, which also means plenty
of networking opportunities. Here are some of the best
ways to network with like-minded entrepreneurs:

Trade shows & exhibitions

This is one of the best ways to network in the Middle East. Thousands
of entrepreneurs and important individuals congregate at these
events year after year to socialise and build new connections. Always
be aware of all the different events that are held throughout the year.

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2023 Dubai Business Set up Guide

DMCC’s Knowledge
Series programme
DMCC has a regular programme called The Knowledge Series.
Here, professionals across different sectors will find regular
updates on the current upcoming events, workshops, lectures
and seminars they may be interested in. This is a great way to
find relevant events quickly and stay up to date with a wide
variety of networking events all year round.

Co-working spaces
Co-working spaces are a great resource for
entrepreneurs, providing an opportunity to build
connections with like-minded individuals in a
natural setting. The relaxed atmosphere of a co-
working space allows for easy networking and the
gradual formation of valuable connections. Here are
some of the top co-working spaces in Dubai where
you can take advantage of this opportunity:

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2023 Dubai Business Set up Guide

Online networking events

Today, there are limitless networking opportunities, particularly
online. Online websites such as Meetup.com, Ryze.com, Tweetups
(Twitter), LinkedIn, Eventbrite and even Facebook have groups,
events and gatherings that are open to the public all year round.

MEETUP.COM
Meetup is a global platform with thousands of social and networking
groups formed based on likes, hobbies and common interests. There
are countless groups for business professionals to easily join.

DMCC EVENTS
The DMCC events website is regularly updated with new events,
spanning across various industries and sectors. From trade shows to
training programmes, there are countless opportunities for members
to build strong and relevant connections.

EVENTBRITE
Eventbrite is a global platform that allows users to easily set up
and post events available to the public. Users can easily search for
events based on their location, interests and specific preferences.

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ARE YOU
INTERESTED IN
SETTING UP A
BUSINESS IN DUBAI?
Apply now for DMCC’s exclusive
business set up package.

FIND OUT MORE