Are you wondering how to get funding for your business set up in Dubai? Well, in the first place you have made a wise decision to set up business in Dubai. As Dubai is a hub of business, so many investors flock to this market due to its incredible tax system. But, to set up business in Dubai the main factor is to get funding for the business. Getting access to external sources of finance is a little bit challenging at the beginning, as the company has a low track record of customer orders, sales and maturity. But there are always two sides to a coin, it can always help boost the business. So let's find out how to get funding for company formation in Dubai.
How Funding is done for Business setup in UAE?
In recent times, funding has been on a rise for the startups in Dubai. Traditionally, investors used to get funding from financial institutions like banks or moneylenders. However, in the last few years, business investors and incubators have accelerated in the UAE, creating a productive and cost-effective atmosphere for entrepreneurs to set up businesses in UAE. This has led to massive growth in crowdfunding, private equity, and venture capital space. Even the technology space has made a massive boost as the UAE government has announced different initiatives for the businessmen and has been promoting the fintech space. The UAE government has also been supporting in financing the local entrepreneurs who are owned by UAE nationals.
How to Get Funding for Your Business in UAE?
Here are 5 ways to get funding for businesses set up in the UAE:
1. Friends and Family
The first and easiest way to get funding is by asking for funds from friends and relatives. It might seem daunting to ask for money from friends and family. But for that, the person must have a clear idea and mindset, so that he can convince his friends or close ones. Before asking for the money the person should make sure that his business plan is ready. Through this plan, the person has to explain to them exactly what he is selling? , how that person is going to make it? The person can present any demo, prototype, potential sales, risk factors, competitors, and how he is going to make money. Here, the person should be realistic and honest in a way they will understand the relationship matters.
2. Alternative Funding Sources
If the fund requirement amount is less, (around $5000) then there are many microloan companies that provide funding to startups and entrepreneurs. Also, there are different crowdfunding sites that provide platforms to raise money from hundreds or thousands of individuals or investors who want to support you and put in smaller amounts or place advance orders, and it accumulates into the target amount.
3. Look Locally
The local small business development Centre is also helpful in raising funds for businesses set up in Dubai. For a lot of time, Dubai has helped many entrepreneurs and assisted the launch of many local businesses in raising funds for their business setup in UAE. These companies can help investors to get connected to entrepreneurs for networking and angel investors.
There are also persons who can guide the investor to many incubators, 'startup hubs', and accelerators that have popped up all over the UAE. The person can also get in touch with the local chamber of commerce, industry association, or business council on guidance for local funding. A lot of Emirates in the UAE, sponsored by the government or the respective free zones also have programs to grow startups.
4. Angel Investors
The growing entrepreneurial ecosystem in the UAE has been accompanied by a rise in the number of angel investors. Angel investors provide investment against an equity share in the company. Also, there are a large number of angel investor networks in the UAE such as the Dubai Angel Investor network, the Women’s Angel Investor Network, and the Falcon network which have encouraged the angel investment scene.
5. Private Equity and Venture Capital
Private equity and venture capital, are the sources of funding, which are slowly entering the UAE. Venture Capital typically provides funds in return for minor equity stakes in start-ups or young SMEs that are not publicly trading. On the other hand, Private Equity Funds often take a majority stake in mature companies in traditional industries.
How to fund your startup in Dubai?
Getting funds for business has never been an easy process. A lot of hustle can fetch a result. So, here are some more ways which can make the work easier:
1. Partnering with Businessmen
First, the easiest way is partnering with businessmen who are already known to the investor. The people who have their own funds to invest, while investors may offer their expertise and professional knowledge, or the person may also contribute financially.
2. Pitching projects to Investors
The second way to raise funds is by pitching the project ideas to the investors so that they get interested in investing funds in the business. There are multiple events that are organized all across Dubai, where young entrepreneurs have an opportunity to present their start-ups. Here it is a big opportunity to pitch the idea to the investors. Investors will be evaluating not only the idea, scalability of the project, they will be also looking as to how quickly the person can grow and would want to know the figures and study their growth process.
3. Strategic Investment
UAE companies can also be funded through strategic investments, particularly in the case of a foreign investor trying to enter into the UAE market and grow inorganically.
Conclusion
Are you still confused about how to get funding for your business in UAE? Danburite Corporate has been assisting the investors for decades in getting funds for business setup in UAE. So what are you waiting for? Contact Us and boost your business.
