Explainer: UAE ranks third on list of best countries to launch a startup in 2024

The UAE has been ranked as one of the best countries globally for entrepreneurs to launch a startup in 2024, according to an analysis by Business Name Generator. The research placed the Gulf state in third position out of 52 countries analysed.

To determine the top destinations to launch a business, the research considered several factors including tax rates, cost of living, internet service, Gross Domestic Product (GDP) growth predictions, cost of hotdesking, quality of life score and happiness score.

Linus Näslund said: “Entrepreneurs face many important decisions … and choosing the right location is one of the most crucial. The location of a business can have a significant impact on its success, affecting access to resources, market demand, and competition.”

UAE comes behind only Hungary and Netherlands

The COO for Business Name Generator emphasised the need to carefully analyse the economic, demographic and cultural factors of potential locations, besides highlighting the importance of legal and regulatory environment, including taxes and labour rules.

The UAE comes behind only Hungary and the Netherlands. It takes four days to set up a business in the country, same as the Netherlands but less than the seven-day duration for Hungary. The Gulf state also carries the second-lowest corporate tax rate – 9%.

The monthly cost of living in the Emirates is a reasonable $983.62, excluding rent. In terms of quality of life score and happiness score, the nation earned 162.7 and 6.6, respectively, suggesting positive lifestyle benefits for entrepreneurs located there.

The study also forecasted a 4% GDP growth for the UAE in 2024. Supported by its high GDP per capita of $47,663, the Gulf state has a robust national economy beneficial for budding startups. The competititive tax regime and the cost of living statistics also raise the bars.

Best countries to launch a startup in 2024

1. Hungary

2. Netherlands

3. UAE

4. Lithuania

5. Romania

6. Czech Republic

7. Finland

8. Bahrain

9. Estonia

10. Malaysia

Most challenging countries to launch a startup in 2024

1. Philippines

2. Italy

3. Brazil

4. Egypt

5. South Africa

6. South Korea

7. Colombia

8. Switzerland

9. Australia

10. France

Europe dominates the top 10 ranking of best countries for startups, offering positive economic and social environments. Simultaneously, high business tax rates, expensive costs of living and unfavourable quality of living trap nations in the the bottom 10 ranking.

Bahrain is another Gulf state on the top 10 list. It has an interesting corporate tax rate of 0%. Unless the business belongs to the oil or gas industry, companies in Bahrain are not required to pay taxes on income, sales, capital gains or estates.

The aforementioned factors make Bahrain a profitable location choice for startups to get off the ground. It has a monthly cost of living of $842, excluding rent, besides a GDP per capita of $24,932, quality of life score of 147.5 and happiness score of 6.2.