World Companies Move to United Arab Emirates: 5.5-Fold Growth in 2023

A particularly business-friendly environment, continuous development and improvement of services, favorable legislation, and a wide range of available investment opportunities have all increased the influx of SMEs to the UAE from around the world. In 2023, the number of foreign SMEs established in the Emirate of Dubai increased 5.5 times compared to the previous year’s results. Mohammad Ali Rashed Lootah, president of the Dubai Chamber of Commerce and Industry, told reporters: “Our network of international offices effectively promotes Dubai’s business community and emphasizes the emirate’s value to companies looking to expand globally. We continue to contribute to the goals of Dubai’s economic agenda, with a particular focus on attracting foreign direct investment.”

According to Ali Rashed Lootah, 104 SMEs settled in Dubai last year, of which 32% came from neighboring Middle Eastern and Eurasian countries. In second place with 29% of the total were companies from China and some other Asian countries. SMEs from Europe and Latin America round out the top three with 26 percent.

At the structural level, the dominant sector was trade and logistics (17%), followed by information technology and telecommunications (13%), and in third place were agri-food companies with 10 percent.

In January 2024, Crown Prince and President of Dubai Executive Council Hamdan bin Mohammed bin Rashid Al Maktoum announced a 500-million-dirham (approximately US$136.2 million) plan to promote the internationalization of SMEs, residents of the United Arab Emirates. The initiative has been launched in collaboration with Emirates NBD, Dubai’s largest banking institution, which will provide financing to SMEs at competitive rates.

In addition to international business, the Crown Prince has a strong focus on sustainable development. On March 26, it was announced that Dubai Can, an environmental initiative launched by Hamdan bin Mohammed bin Rashid Al Maktoum in February 2022, has achieved a major milestone: approximately 18 million half-liter single-use plastic bottles have been disposed of into safe and uncontaminated places. The program encourages residents and tourists to ditch disposable plastic bottles and opt for water available in 50 new drinking water fountains built at “strategic” locations in Dubai. This and other programs are in line with the United Nations Sustainable Development Goals and the UAE’s NetZero 2050 goals.