The United Arab Emirates (UAE) is rewriting the playbook for startup success. In just a few decades, it has transformed from a desert economy into a dynamic center for global business and innovation. Today, founders from all over the world are choosing the UAE as their launchpad—not only to tap into the regional market but also to springboard into the wider world. Whether you’re a tech innovator, an ecommerce dreamer, or an entrepreneur seeking a flexible, growth-friendly ecosystem, the UAE offers unique advantages that are hard to find elsewhere.

Why are so many startups moving here? It’s all about strategic positioning, a supportive government, a welcoming regulatory climate, and practical benefits like favorable taxes and robust funding access. Let’s get practical and walk through the real reasons why the UAE has become such a strategic choice for new startups—and how you can make the most of it.

The UAE as a hub for startups targeting international markets

It’s easy to talk about location, but the UAE truly sits at a global crossroads. Dubai and Abu Dhabi, in particular, are positioned between Europe, Asia, and Africa. This means your business sits within an eight-hour flight of two-thirds of the world’s population—think millions of potential customers, partners, and investors.

Startups in the UAE benefit from logistics that are rarely matched. Ultra-modern airports, ports, and road connections make international trade smooth and rapid. This is one reason tech startups prefer setting up businesses in the UAE for growth and development: they know they can reach markets in just about every direction, fast.

The global focus doesn’t stop with geography—the workforce here is equally diverse. With a talent pool from around the world, you get access to varied skills and perspectives. There’s also a cluster effect: if you’re in fintech, climate tech, digital assets, or other high-growth verticals, you’ll find clusters like Dubai Internet City and Abu Dhabi Global Market teeming with startups, accelerators, and investors.

Tax benefits: How the UAE provides tax incentives for new businesses

Let’s talk numbers. One reason the UAE stands out for startups is its uniquely favorable tax regime:

• Zero personal income tax: You and your employees can keep your entire salary. This naturally attracts skilled talent.
• Low corporate tax: Only profits above AED 375,000 (about USD 100,000) are taxed at a flat 9%. For many smaller startups, there is no corporate tax liability at all.
• Free Zones mean 0% corporate tax: Start your business in one of the many Free Zones (like Dubai Internet City, Abu Dhabi Global Market, or DMCC), and you may qualify for 0% corporate tax, subject to certain conditions. You’ll also get 100% foreign ownership and no restrictions on repatriating profits.
• No tax on capital gains or dividends: Sell your shares, receive dividends—there’s simply no tax at the federal level, making the UAE a great hub for holding companies and scaling operations.
• No withholding taxes: Sending profits or dividends abroad? The UAE doesn’t tax outbound payments, which keeps things simple and attractive for international founders.

This tax structure isn’t just theoretical. It’s a real, practical advantage that means more profits can be reinvested in your business—and that’s a huge boost, especially in your early growth stages.

UAE company licensing and registration process: Steps to get your startup up and running quickly

Getting your company legally registered in the UAE is designed to be straightforward—gone are the days of heavy bureaucracy or months-long waits. Here’s how the typical process unfolds for startups:

1. Decide on a legal structure: Will you register as a sole establishment, LLC, or Free Zone company? For most foreign startups, Free Zones are the top choice due to their speed, 100% ownership, and sector-focused support.
2. Choose your business activity and location: There are dozens of Free Zones, each specializing in different sectors—tech, media, fintech, logistics, and more. Picking the right fit is important: for example, tech startups might consider Dubai Internet City, while fintech firms may prefer Abu Dhabi Global Market.
3. Reserve your company name and apply for initial approval: Some activities require special approvals, but for most generic businesses, this is a quick online step.
4. Prepare legal documents: Submit standard documents such as passport copies, a business plan (for certain activities), and proof of address. Many Free Zones have online portals to upload these directly.
5. Sign incorporation documents: You’ll sign your Memorandum and Articles of Association, often digitally or in-person at the registration authority’s office.
6. Get your trade license: Once the documents are approved, you receive your trade license. In many Free Zones, you can get licensed within a few days.
7. Open a company bank account: UAE banks cater to startups but may require an in-person meeting and business plan. The process has become increasingly efficient, especially for Free Zone companies.
8. Hire and sponsor employees: Many licenses allow you to sponsor your own residency (and your family) as well as employees via straightforward visa processes.
9. Set up your office or flexi-desk: Depending on your business activity, requirements range from a simple flexi-desk to fully fitted offices. Many Free Zones provide co-working spaces and affordable starter packages.

The government continues to streamline these steps, rolling out new portals and simplified bundles for startups, further lowering the barrier to entry.

How the UAE is helping startups expand into international markets

The UAE isn’t just a great place to start—it’s built for scaling. Here’s how it actively supports international expansion:

• World-class infrastructure: Fast internet, top logistics, and direct air links to Europe, Asia, and Africa allow you to serve customers anywhere seamlessly.
• Funding opportunities: VC funds, angel investors, government grants, and programs like the Dubai Future District Fund or Abu Dhabi Investment Office give startups easier access to growth capital.
• Global networking events: From GITEX Global (the region’s largest tech show) to FinTech Abu Dhabi, you’ll find frequent events to connect with global partners and investors.
• Flexible visas: The Golden Visa and Green Visa programs offer long-term residency for entrepreneurs and talented professionals, making it easier to build diverse, international teams.
• Strong intellectual property protection: The UAE’s legal system protects trademarks, patents, and IP, making it a safer base for innovative startups.
• Government-backed accelerators and incubators: Programs like Dubai Future Accelerators, Hub71 (in Abu Dhabi), and multiple Free Zone incubators provide mentorship, market access, and investor introductions.

Key business strategies for UAE startups

Want to maximize your chances of success? Here are some actionable recommendations for new startups in the UAE:

• Stay flexible: The business environment moves quickly; be ready to adapt your model and offerings as market demands shift.
• Leverage innovation: Explore partnerships, experiments, and R&D in emerging sectors like AI, blockchain, or sustainable tech. The government encourages bold ideas.
• Build a robust network: Use local events, co-working hubs, and accelerators to connect with potential co-founders, customers, and funders.
• Understand cultural nuances: The UAE is cosmopolitan but valuing local culture and building trust with Emirati and expat partners alike is key.
• Follow local regulations: Ensure compliance—but don’t get overwhelmed. The licensing and compliance environment is designed to help (not hinder) startups, with plenty of advisors ready to assist.
• Use digital marketing: Social media and influencer marketing are highly effective in the UAE’s connected, mobile-first market.

Conclusions and recommendations for startups in the UAE

The UAE’s rise as a global startup hotspot isn’t accidental. It’s anchored in thoughtful policy, a welcoming regulatory regime, unmatched international connectivity, and a relentless drive for innovation. If you’re aiming to turn a big idea into a scalable business, the UAE is built to make that happen—whether you want to access regional GCC markets, go global, or simply build in a safe, rewarding environment.

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Warren Buffett’s Berkshire Hathaway on Thursday announced a $9.7 billion cash deal to buy Occidental Petroleum’s petrochemical subsidiary, OxyChem, marking its largest acquisition since 2022, when it paid $11.6 billion for insurer Alleghany.

The transaction comes as Berkshire sits on a near-record $344 billion in cash, underscoring Buffett’s strategy of deploying capital into large, established businesses with steady returns.

Occidental shares fell about 6 percent after the announcement, reflecting market unease over the sale of a profitable unit. But the deal gives Occidental the opportunity to strengthen its finances, with CEO Vicki Hollub confirming $6.5 billion of the proceeds will be directed toward debt repayment — a critical move following the heavy leverage the company took on during its $55 billion purchase of Anadarko Petroleum in 2019.

“The problem has been getting our debt down faster, so this resolves the one outstanding issue that I think will now unlock our stock and allow shareholders to feel more comfortable, hopefully, to add to their positions and others to come in,” Hollub told CNBC’s Squawk Box. “So now we’re going to be able to start our share repurchase program again. … This is the last step that we needed in our major transformation that we started 10 years ago.”

Buffett, now 95 and stepping down as CEO at the end of the year, has built Berkshire’s reputation on acquiring what he calls “forever assets.” In chemicals, this marks a return to familiar territory — the conglomerate paid around $10 billion in 2011 for Lubrizol, another specialty chemicals producer. Greg Abel, Berkshire’s vice chairman of non-insurance operations and Buffett’s successor from 2026, called OxyChem a natural fit.

“We look forward to welcoming OxyChem as an operating subsidiary within Berkshire,” Abel said, adding that Hollub’s decision to use proceeds to pay down debt demonstrates Occidental’s “commitment to long-term financial stability.”

The deal is expected to close in the fourth quarter. The Wall Street Journal first reported on the transaction earlier this week.

Berkshire’s relationship with Occidental dates back to 2019, when Buffett provided $10 billion in financing to help Occidental secure Anadarko. In exchange, Berkshire received preferred shares paying an 8 percent dividend, along with warrants to buy common stock. Hollub said Occidental intends to start redeeming Berkshire’s preferred shares in 2029 as it grows cash reserves, but until then, the dividend payments remain a reliable stream for Berkshire.

For Berkshire, the OxyChem deal highlights its evolving energy strategy compared with its other cornerstone holdings. While its utility arm, Berkshire Hathaway Energy, focuses on renewables and long-term infrastructure, and BNSF Railway provides steady transport returns, OxyChem fits into a different part of the industrial cycle — one tied to chemicals essential for water treatment, healthcare, and manufacturing. It also complements Berkshire’s 28.2 percent stake in Occidental, deepening exposure to the energy sector without taking direct control of the oil business, something Buffett has said he does not intend to do.

By contrast, Berkshire’s capital allocation in the past decade has also leaned heavily into insurance, railroads, and Apple — its single largest equity stake. The OxyChem acquisition reflects Buffett’s long-held preference for businesses that generate strong cash flows regardless of economic cycles, a pattern that investors expect Abel will continue after Buffett’s departure.

Occidental, meanwhile, views the divestiture as a long-awaited reset. The debt strain from Anadarko has loomed over the company for years, delaying buybacks and weighing on its stock. Hollub framed the OxyChem sale as the “last step” in a decade-long transformation, signaling to investors that the company is prepared to return cash to shareholders.

The deal, then, is as much about Berkshire’s future as Occidental’s. Buffett, who first stepped into Occidental during one of its most consequential deals in 2019, sees this as a parting move that underscores his belief in the durability of the U.S. energy and chemicals business. It offers a fresh chance for Occidental to regain footing with investors after years of balance-sheet pressure.

Yahoo is in advanced talks to sell AOL to Italian technology company Bending Spoons for about $1.4 billion, four people familiar with the matter told Reuters, a deal that would underscore how one of the internet’s most iconic names may be leaving American hands for a European upstart.

The Milan-based app developer is negotiating to buy the legacy media brand, though sources cautioned that no final agreement has been signed and talks could still collapse. Yahoo, controlled by private equity firm Apollo Global Management, acquired AOL as part of a $5 billion deal in 2021 when Apollo bought a 90% stake in Yahoo from Verizon.

AOL’s Long Decline

AOL remains etched in internet history as one of the pioneers of online consumer services, famous for its “You’ve Got Mail” notification and dial-up access. In 2000, it merged with Time Warner in a $160 billion deal, then the largest in history, but the merger quickly collapsed under regulatory probes and massive writedowns.

In the years since, AOL lost its dominance to younger tech giants such as Google and Facebook, but still generates revenue through digital advertising and subscription services, including LifeLock identity theft protection, LastPass password management, and McAfee Multi Access malware protection.

A source familiar with AOL’s recent performance said its website traffic grew 20% year-over-year among users aged 25 to 54, outpacing growth among older audiences. The increase was fueled by AOL.com expanding into new content verticals such as Health, Fitness, Animals, Science & Tech, Home & Garden, True Crime, Local, and light entertainment.

Bending Spoons’ Global Expansion

For Bending Spoons, acquiring AOL would add to a fast-growing portfolio of international assets. Founded in 2013, the Milan-based company now counts 300 million monthly users and has become one of Europe’s rare tech “unicorns,” with a valuation of $2.55 billion after a February 2024 funding round.

The company has pursued an aggressive strategy of acquiring struggling but recognizable technology platforms. Last year, it purchased file-sharing service WeTransfer, and just last month it agreed to buy video platform Vimeo for $1.38 billion — its largest deal to date.

Bending Spoons’ co-founder and CEO Luca Ferrari has said the company is working toward positioning itself for a potential U.S. IPO, though no firm timeline is in place.

Comparative Trade Angle

If completed, the AOL sale would be more than just the passing of an American internet relic to a European buyer. It would mark a symbolic shift in global tech trade, where U.S. legacy platforms, once dominant worldwide, are being absorbed by emerging European players looking to expand their digital footprint.

Unlike in past decades when European tech largely played catch-up to Silicon Valley, acquisitions such as Vimeo and potentially AOL show firms like Bending Spoons leveraging U.S. assets to gain global reach. Bankers see the company as one of the few European tech firms capable of challenging American dominance in consumer internet services.

The deal fits a pattern of American private equity divesting legacy media names as growth slows, especially for Apollo, which has been streamlining Yahoo’s portfolio. But it also signals how European capital and strategy are increasingly flowing westward to capture once-dominant U.S. brands and reposition them for the mobile-first, subscription-driven economy. If sealed, the acquisition is expected to reshape Bending Spoons’ profile.