Artificial intelligence (AI) is known to be the biggest growing industry in the world right now. And almost stepping its feet into hospitality, healthcare, banking, creativity, and businesses, it is highly unlikely to expect it will slow down in the coming times.
In the middle east, it is expected at AI will impact the economy by up to 230 billion by the end of 2030.
So, waiting for the right time to start an artificial intelligence company in Dubai, UAE is the wrong approach as there is no better time than now. Starting an artificial intelligence business this year will provide you with a fast, efficient, and cost-effective company formation procedure. It doesn’t matter if you are an inspiring entrepreneur or a Veteran business person, with the help of business setup consultants, you can smoothly start your artificial intelligence company in Dubai.
Here we have covered all the key points you need to know before starting an AI company in Dubai, UAE, including licensing, approvals, and costs.
What is artificial intelligence (AI)?
Artificial Intelligence (AI) focuses on the development of intelligent machines that can think and act like humans. AI has been around since the 1950s, but recent advances in technology have made it possible to create more powerful AI systems than ever before. This technology continues to be one set where a lot of tools can be used to solve endless use cases.
From solving complex problems to speech recognition, natural language processing, and image recognition, AI is replacing many human jobs.
You must already have witnessed its use in robotics and autonomous vehicles, where computers are able to take over some of the control functions of human operators.
AI is being used by businesses to make decisions more quickly and accurately than ever before, making it an essential tool for organizations looking to stay competitive in today’s global market.
The most common industries where AI is used:
- Smart devices
- E-commerce algorithm
- Stock control
The benefits of starting an artificial intelligence company in Dubai
Starting an artificial intelligence company in Dubai has many benefits. The city is a hub for business and innovation, offering a wealth of opportunities for entrepreneurs.
Dubai has established itself as a leader in the technology sector and provides start-ups with access to world-class infrastructure, digital resources, and tech talent.
The government offers generous tax exemption to businesses in Dubai that operate within the emirate, making it easier to get started in the AI industry or any other business public or private sector.
The city’s strategic location makes it easy to tap into global markets and expand operations. You can also find multiple options for incubators as well as acceleration schemes in free zone areas of Dubai.
There are several fully developed and integrated tech communities where hundreds of leading tech start-ups and SMEs work. Set up an artificial intelligence company to get instant access to the community that is full of mentors, accelerators, and networking events and workshops.
There you can offer an array of services including faxing, shredding, printing, PO boxing, reception covers, and more.
Another benefit of starting an artificial intelligence company in the Dubai free zone gives you 100% tax exemption be it capital or custom and complete profit repatriation.
With its supportive environment and ample resources, Dubai is an ideal destination for those looking to launch a successful AI business.
Steps to set up an artificial intelligence company in Dubai
Setting up an Artificial Intelligence (AI) company in Dubai is an exciting prospect that could open up new opportunities.
First step: company name
When starting an AI technology Dubai business, the first thing to do is to choose the name of your business. It should comply with the UAE naming business conventions. Also, note that abbreviations are not allowed; you can only select the full name of your company. With that, blasphemous or offensive language is also prohibited. And not you can take already taken name.
Then prepare a suitable business structure and register the company with the Department of Economic Development (DED).
Second step: License registration
The documents required for license applications are:
- Passport copy
- Visa copy
- Emirates ID is also be required
- Trade license copy
- Pre-launch business plan copy
- Your complete personal details
Third step: visa application
To live here in the UAE, you need to get a visa for that. For that, you have to apply for a visa at the relevant immigration department. But if you are opening your AI company in free zones, then the visa application will be included in the company formation documents.
It is also a prerequisite requirement of visa application to go through the biometric, medical test, and fitness check-up.
Fourth step: workspace
Now you would find a suitable office workspace in one of the free zones or anywhere else in Dubai.
Once all paperwork is completed, it is essential to invest in infrastructures, such as servers and software tools for AI development and research.
Fifth step: recruitment
Beyond making this application for a license, it’s important to recruit qualified professionals who can help develop and implement AI solutions.
Sixth step: relationship building
Lastly, you have to build relationships with partners who can provide access to data, resources, market insights, and other key services necessary for success.
With careful planning and proper execution, setting up an AI company in Dubai can be a lucrative business in the UAE that could significantly contribute to economic growth.
The cost of getting an artificial intelligence license in Dubai
Obtaining an Artificial Intelligence (AI) license in Dubai can be a lengthy and costly process. Depending on the type of license you are seeking, the size of your business, your location, and the potential business activities, there are different fees that must be paid.
For instance, the cost to apply for the general AI License is AED 20,000 and it covers activities such as data mining, natural language processing, and machine learning. Additionally, if an individual or company wishes to obtain an AI License tailored to their specific needs, they will need to contact the Department of Economic Development in Dubai directly.
This specialized AI License will incur additional costs and submit further documentation. Furthermore, applications for any AI License in Dubai must be accompanied by a business plan with the objectives of the proposed project.
Therefore, obtaining an AI License in Dubai can be both time-consuming and expensive but with careful preparation and planning it is possible to successfully navigate through the process.
Mainland acts towards artificial intelligence companies in Dubai
There are mainly two jurisdictions for opening an AI company in Dubai. Either you can open a free zone or mainland. You have to find which jurisdiction is best for your business type and planned business activities.
Mainland acts towards artificial intelligence companies in Dubai have been very favorable.
The UAE local government has provided a lot of hands-on support covering to encourage the growth of this sector. This includes tax breaks, relaxed regulations, and access to funding.
Not only this, but the UAE government has also established a dedicated AI center, which serves as a tech incubation for AI start-ups and helps them connect with investors and other industry experts.
So, if you open a local mainland license, join the Dubai Future Accelerators (DFA) entrepreneurship program. The DFA program is advantageous as it offers an opportunity to all the AI companies in the UAE to get access to all the updated resources of Dubai’s government organizations.
Free zone initiative for artificial intelligence company in Dubai
The Free Zone Initiative for Artificial Intelligence Company setup by Dubai silicon oasis authority for artificial intelligence in Dubai is an excellent opportunity for businesses to take advantage of the city’s emerging technology environment.
The initiative allows companies to set up their operations in Dubai without the need of having local partners or sponsors. Free zones like Dubai silicon oasis provide you with advantages like cost-effective business licenses, high internet speed, with several business events and investment opportunities.
In5 is a tecom free zone communities start-up design. In5’s three specialized innovation center offers training and support on co-working, digital acquisition, prototype labs, customer validation, pitching, and investment opportunities.
You can also access to talent, resources, and infrastructure necessary to develop AI products and services. AI businesses can also take advantage of the city’s customs tax exemptions which include no corporate income tax and zero percent import/export duties.
You can also get to enjoy benefits such as 100% foreign ownership of all business entities, no restrictions on capital repatriation, access to world-class transportation networks, and more.
Final words on starting an AI company in Dubai
Any business whether it is an artificial intelligence company in Dubai or not must get a license from the Dubai economic development department where you have to submit all the required documents. Iif you are feeling overwhelmed with the application process, we at vigor corporate services can walk you through the process of registration and license acquisition.