From Silicon Valley in California and Tel Aviv in Israel to Bangalore in India and the Beijing-Tianjin-Shijiazhuang Hi-Tech Industrial Belt in China, countries across the world are increasingly creating environments and ecosystems that attract tech firms of all shapes and sizes, and from sectors as diverse as artificial intelligence (AI), regtech, medtech and blockchain (and beyond).
In a crowded global market, countries that want a serious presence in the tech space are having to offer an exceptionally enticing proposition if they’re to stand out among their competitors. One such place that is gaining increasing attention on the world stage is Dubai, which is a leading location for tech companies in the UAE, including global players such as Amazon, Apple, Cisco, Google, Meta and Microsoft.
And it has recently taken a further step in its tech journey by making it easier for firms to do business across the emirate.
Free Zones: a compelling proposition
For years, Dubai has offered – and continuously evolved – a remarkably pro-business environment, providing a host of incentives aimed at attracting firms that want to set up business in the UAE. The most recent driving force is the Dubai economic agenda, known as ‘D33’, which was introduced in 2023 and is aimed at making Dubai ‘the fastest, safest and most connected city in the world’ by investing in human development and advanced technology.
Playing a key role in achieving the accelerated growth targeted in D33 are Dubai’s Free Zones. These provide significant business benefits and incentives that include:
- Speed of business set up
- Networking and collaboration opportunities
- Access to a skilled and diverse workforce
- 100% foreign ownership
- Full profit repatriation
- Preferential customs duties
- Minimal government bureaucracy
Critically, from a technology and innovation standpoint, there are a number of Dubai Free Zones that are either dedicated to technology or have a significant tech presence. These offer state-of-the-art infrastructure, research facilities, and collaborative spaces to support the growth of tech startups and established companies.
Not only can these Free Zones help enable firms with a Middle East tech market entry strategy, but they also create an attractive environment for tech investors in Dubai.
Key among these are Dubai Silicon Oasis (DSO), Dubai Internet City (DIC), the Dubai Multi-Commodities Centre (DMCC) and the Dubai International Finance Centre (DIFC).
What’s more, Dubai is home to initiatives and centres that help attract and facilitate tech companies. These include Sandbox Dubai, which allows the testing and marketing of new products and technologies; the Dubai Centre for Artificial Intelligence; the Dubai Future Foundation; the DIFC Innovation Hub; and the Dubai Robotics and Automation Programme.
The power of collaboration
As mentioned, the Free Zones tend to be home to specialist technology areas. The DMCC, for instance, has four key ‘technology ecosystems’ – gaming, crypto and blockchain, AI and e-commerce. The DIFC, on the other hand, has a primary focus on fintech. As the region’s leading financial free zone, the DIFC supports both financial and non-financial companies from around the world. The Dubai Future District Fund, with an initial funding of US$272 million, backs startups and venture capital to drive regional growth.
These ecosystems create a collaborative environment that can provide additional benefits to tech firms establishing there. Businesses need talent, investment, access to infrastructure and networks – and they can speak to other firms in their Free Zone for support and to build working relationships.
On the same floor in the same building, one firm can run into different types of companies that may add value to its supply chain or be able to assist with a product or service.
And this collaboration extends to government and bodies such as the Dubai Digital Authority, all of whom tend to be accessible and approachable, and are quick to introduce regulation that helps improve the tech landscape even further.
An example of this is the announcement made in March 2025 by Crown Prince Sheikh Hamdan bin Rashid Al Maktoum which allows any company licensed by a Free Zone relevant authority to operate outside the Free Zone and within Dubai, as long as it obtains the necessary licenses or permits and meets relevant criteria. This enables Free Zone businesses (except for financial firms in the DIFC) to expand their operations beyond the Free Zones into mainland Dubai.
Where and how to establish?
All of this paints an exciting picture for tech firms that want to establish in Dubai, but it’s worth sounding a cautionary note that rules and regulations apply across the emirate and need to be complied with, and these aren’t identical across Free Zones. So, understanding exactly what might apply to your business is essential.
Tech firms establish in Dubai for a variety of reasons, such as establishing a base from which to expand into the broader Middle East and North Africa (MENA) region. Others may want to use it as a testbed for a new product or service. This can have an impact on where a business sets up and the entity it chooses.
In our experience, the majority of firms primarily enter the market through an LLC structure because of the flexibility in management and ownership structures as well as the limited liability protections. This is a structure we may well actively recommend when a parent company is in a more regulated industry, such as fintech.
In other cases, a branch office may be more appropriate because of the nature of the firm’s operations in Dubai and the ringfencing that happens from the parent company.
While setting up an appropriate entity and ensuring that all local regulations are complied with has been made easier because of the pro-business environment, it can still throw up challenges, and it’s here that the knowledge of a local partner can be invaluable.
The way forward
With the ambitious goals that are part of D33, Dubai looks set to continue its upward trajectory when it comes to exciting and innovative tech businesses. As new technologies emerge, Dubai is perfectly positioned to offer the ideal environment for start-ups and early-stage growth businesses and as a destination for venture capital investment.
AI is a prime example of this, with a host of firms in Dubai emerging into that space and converting the buzz into reality. We are seeing a lot of collaboration and innovation happening, as well as how AI is being applied across several industries. Not only is this bringing in foreign talent, it’s also attracting other stakeholders and VC partners, pulling together a wealth of knowledge and amalgamating different moving parts.
Dubai is fast-becoming a go-to place for tech in the Middle East, and it’s a story we’re excited to follow as it develops further.
Setting up your business in Dubai
Our experienced team based in Dubai frequently collaborates with leading Free Zones and regulatory bodies, supporting tech businesses with tailored entity formation and administration services.
We’ve helped start-ups, scale-ups and global tech firms establish and grow their presence in the region, making Hawksford a trusted partner of choice for companies looking to capitalise on the UAE’s innovation-driven economy.
To learn more about how we can support your tech business in Dubai or the Middle East, get in touch with our team today.
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