Artificial Intelligence (AI) has now become a mainstream terminology in the world of science and technology. The field is booming and is ever-growing. It is being used in tons of businesses and various industries such as hospitality, education, healthcare, banking, and more.
By 2030, AI is predicted to have participation worth USD 230 billion in the Middle East’s economy. The UAE, which accounts for over 14% of the total, is predicted to benefit the most from it.
What this means is that the ideal time to launch an artificial intelligence company in Dubai, UAE is right now. You can successfully set up your AI company in Dubai because the process of company formation is quick, simple, and reasonably priced. But for setting up your AI-based business, you must get assistance from a local business setup professional Like Riz and Mona.
This guide will take you over the essentials of setting up an AI business in the UAE. From issuing licenses to expenses, everything that you must know is covered in this guide. So, read on to learn the whole process of artificial intelligence company setup in Dubai, UAE.
Table of Contents
What is Artificial Intelligence (AI)?
For those who don’t know, artificial intelligence can be defined as machine intelligence or the smart way in which machines work or perform a certain task. Any device that can identify its surroundings and take action to improve its odds of completing its goals means it is using this concept.
AI is the simulation of human intelligence in devices that have been designed to behave and think like humans. The phrase can also be used to refer to any computer that demonstrates characteristics of the human intellect, like problem-solving and learning.
AI is frequently used for:
- Stock control
- E-commerce algorithms
- Smart devices
- Security Checks
- Facial recognition
Because the scope of AI is so broad and can affect numerous industries, you must specify in your pre-launch business plan what exact niche you want to target. It will be simpler to choose the jurisdiction that is suitable for your start-up if you specialize in your market-to-target.
The ability to reason and take actions that have the most chance of reaching a certain objective is the ideal quality of artificial intelligence. Machine learning (ML), a subtype of artificial intelligence, is the idea that computer programs can automatically learn from and adapt to the latest and fresh information or data without any sort of human assistance. Deep learning algorithms allow for this autonomous learning by consuming vast quantities of unstructured data, including video, text, audio, and photos.
How to Setup an Artificial Intelligence (AI) Company in Dubai, UAE
Here are the steps that you need to take to start your own artificial intelligence company in Dubai, UAE:
Step 1. Knowing the Competition
Establishing a company begins with knowing your competitors. It is impossible to formulate a solid business strategy without knowing your competitors. Therefore, you should know what your competition is doing, where they lack and what they are good at, and where you can have an advantage over them.
Step 2. Decide the Jurisdiction
Choosing a jurisdiction for your company is the next step. Do you want to go to the mainland or to the free zone? In the case of a free zone, which one is it? Jurisdictions have different laws governing them. In order to decide which jurisdiction is best for you, you must be familiar with them. This way of choosing an economic zone, you will be able to make a solid decision on the basis of your unique business requirements.
Step 3. Decide on a Trade Name
Your trade name must adhere to a few naming rules and conventions. A few of them are:
- Its registration must be available
- Abbreviations are not allowed, only full names are accepted
- Words that are potentially offensive or blasphemous cannot be used in it
Step 4. Get a Business License
Some documents are required to get a business license. These documents include:
- Attested Birth Certificate
- Emirati ID, visa, and passport copies, (if required)
- Summary of the business plan
- Copy of company license (for all Shareholders and the applicant)
Step 5. Apply for the Visa
This application can be submitted to the relevant immigration department. Or, for companies that are set up in a free zone, the visa services in Dubai application are handled on your behalf as part of the standard business registration procedure.
Step 6. Take a Medical Test
At the last step, as part of the application process, you will also be required to submit biometrics and take a fitness test and medical test.
Dubai Free Zone Initiatives for Artificial Intelligence Companies
DTEC is a program that the Dubai Silicon Oasis Authority has created for businesses involved in artificial intelligence. It offers a variety of unique meeting and event rooms, economical business licenses, and co-working spaces with lightning-fast speed internet.
The TECOM free zone villages are behind the initiative of in5. It provides business opportunities, education, mentoring, networking, workspaces for artistic people, and prototyping laboratories for enthusiastic entrepreneurs. The three specialized innovation centers run by in5 give business owners access to a network of the region’s most creative minds out of the lot.
Astrolabs and DMCC have teamed up to make an entrepreneurship program for business-minded people. It is a pioneer in tech incubation, acceleration, and corporate training in the Middle East region. Its entrepreneurship program offers practical assistance with start-up design fundamentals like pitching, conducting market analysis, digital acquisition, customer validation, and assembling a strong team.
Any business launched in the UAE will benefit right away from various advantages such as a welcoming business environment, 0% tax rate, and advantageous location in the Middle East.
In addition, this region is one of the most prominent technology centers in the world offering facilities like none other. It offers acceleration business-related programs, a variety of incubators, awesome workspaces, and free zones specially designed for tons of different companies.
DTEC is the best example to show the advantage of doing business in Dubai. It is a completely integrated tech community that is home to hundreds of the top IT entrepreneurs, startups, and SMEs in the region. You will get access to tons of helpful things under one roof such as modern accelerators, coworking space, experienced mentors, networking events, and the latest courses when you establish your company here.
A variety of essential business services are also available to you, including post office boxes, printing, shredding, faxing, and reception cover.
Additionally, when you form your company in a free zone of Dubai, UAE, you’ll gain access to various advantages such as 100% customs tax exemptions, capital, and profit repatriation, etc.
Joining the Dubai Future Accelerators (DFA) program can be useful if you decide to get a local mainland license. DFA offers an exceptional chance for AI businesses to receive unlimited access to the knowledge and resources of Dubai’s government agencies. The local government of the UAE continues to be one of the top investors in the Emirates because it has a strong belief in the revolutionary potential of AI.
The DFA program offers AI companies an environment to investigate new possibilities to excel in the region. Transformative technology and services are provided, leading to agreements with businesses to carry out sponsored pilot projects. They regularly post a number of challenges on their website. These challenges are taken by AI businesses to take them on and tackle them.
Starting a successful artificial intelligence company on the basis of meeting governmental challenges’ requirements is possible. You can concentrate on problems in the private sector. You will have access to an unprecedented amount of data if you take the government path. An AI scientist’s and a data scientist’s wildest dream, perhaps. If you can demonstrate good results in pilot initiatives, funding will be easier to obtain from tons of investors.
Local financial institutions have been early and strong adopters of AI technology in the private sector. Banks, for instance, 85 % of them have used AI to streamline their decision-making. In contrast, to improve response time, 40% of insurers are automating claims processes.
FAQs – Frequently Asked Questions
What is AI?
Artificial intelligence or simply known as AI is machine intelligence or the smart way in which machines work or perform a certain task that is assigned to them.
How much does it cost to start an AI company?
The cost to start an AI company depends on case to case. Some factors such as company size and location also play a crucial role in estimating your AI company setup in the UAE.
How can I start my own business in artificial intelligence?
There are six steps to follow to start your own business in artificial intelligence in Dubai, UAE:
Step 1. Survey your market
Step 2. Select an economic zone
Step 3. Choose a trading name
Step 4. Obtain a business license
Step 5. Apply for the visas
Step 6. Take a medical test
What is the number 1 AI company?
There are multiple top-of-the-line AI companies in the UAE that are booming in the industry right now. You may join them to learn their secret to success.
Is it hard to create an AI Company?
No, any businessman or fresh entrepreneur can start his/her own AI company in Dubai, UAE with ease. Just read our guide on this matter and you will be able to understand everything.
Start Your Artificial Intelligence Company in Dubai, UAE With Riz and Mona
With so many options available, starting a business in Dubai can be somewhat scary. But fret not, Riz and Mona is here to help you out. Several AI-related businesses received help from our company formation experts as they expanded within the Dubai business market. On the basis of your business model and objectives, we can also give you insightful information that will help you in making your business a successful one. Our experienced professionals are aware that all start-ups have a distinct goal in mind. We lay the foundation of our recommendations on your vision. To make your ambition a reality, get in touch with us for a free consultation right now.