What Business Can I Start With 50,000 AED In Dubai?

Starting a business in Dubai is quite straightforward even though it can be tedious. With 50,000 AED, there are quite a few businesses you can start.

You can choose to undertake the process of starting a business on your own or hire a business setup expert. Whatever route you’re taking, ensure you know the right things to do.

Information about the industry you want to venture into, licenses you need, etc. are important. 

In this article, you will be learning what business you can start with 50,000 AED in Dubai.

Why Should I Start a Business In Dubai?

Dubai is a vibrant and dynamic city with lots of opportunities for entrepreneurs. It has an incredibly welcoming and supportive business environment.

Doing business in this city is incredibly rewarding and here’s why;

Strategic Location

Dubai is beautifully positioned between Europe, Africa, and Asia making it a lucrative business location for international trade.

It is one of the best places to start a business because of its geographic location. it is a good site for enterprises wishing to get into the large markets of the Middle East, North Africa, and South Asia. its geographic advantage provides for a large customer base for businesses.

No tax

Apart from the VAT introduced in January 2018, the UAE proudly boasts a 0% tax on both personal and corporate incomes. The VAT stands at just 5%.

Vibrant economy

Home to the second-largest economy in the Arab world, Dubai boasts a GDP of around AED 692bn. it sits behind only Saudi Arabia.

Quality of life

The quality of life in Dubai is great. The sustainable and smart economy it possesses makes sure of that. 

Dubai offers a high standard of living, it has modern amenities, world-class healthcare, and educational institutions. These factors help businesses attract international talent and patronage

Support

The Emirates is home to many startup incubators and funding initiatives. These incubators and initiatives are designed to accelerate business growth. 

Now that we have dealt with why you should start a business in Dubai, let’s look at what business you can start with 50,000 AED in this same Dubai.

Also Read: Ultimate Guide on How to Buy and Sell Gold in Dubai

How Can I Start a Business in Dubai?

Before you know what business you can start in Dubai with 50,000 AED, you should know how to start a business in Dubai.

Every country has its unique procedures for starting a business. In Dubai, the procedures are not complicated as can be seen below;

• Identify the business type and license you need in line with the UAE licensing system.

• Choose the business entity type you want. It could be an LLC, company, or establishment.

• Register your company trade name.

• Select your business space and location. There are options to build, own or rent an office, or a warehouse.

• Submit necessary documents and obtain approval for your business.

• Once you have your initial approvals in place you can then register your business, and get your license to trade in Dubai.

What Business Can I Start in Dubai with a 50,000 AED Budget?

Dubai is known as the business hub of the Middle East. It offers a plethora of opportunities for entrepreneurs. 

The ecosystem in Dubai facilitates business growth. It has a booming economy that almost ensures success for any business situated there. Here is a list of 10 businesses you can start with 50,000 AED in Dubai:

1. Tutoring service

Online businesses spiked during the COVID-19 era, and to date, it is thriving. Obtaining educational services online has become the new normal, hence, providing a goldmine that can be tapped into.

As a rapidly growing sector, online tutoring services have expanded due to heavy government investment and the growing adoption of online education in most educational institutions.

In the United Arab Emirates, parents pay as much as AED 8,000 yearly for private education for their children and that is aside from regular school fees.

If you have expertise in a certain subject area with proof of competence, you can start an online tutoring service in Dubai and become successful at it.

How Can I Start a Tutoring Service in Dubai?

You could start a tutoring service for students in Dubai if you have expertise in certain subject areas. 

That is not enough though, there are certain qualifications you should possess to make the journey easier.

To start a tutoring service, it is advised you have the following;

• A teaching certificate or experience in teaching
• Master’s degree or PhD
• Specialization in a particular field

This doesn’t mean that you can’t start a tutoring service business without a certificate, it only makes it easier for you to get high-paying clients.

People will consider you more competent when you have certificates to back your claim of expertise.

To set up a tutoring service business, here’s what you should do;

1. Find a company set-up partner

It is easier to set up a business in Dubai if you use the services of a company set-up partner.

This partner can walk you through the entire process and ensure you fill in all forms correctly. You are likely to get your license approved much faster if you use a company set-up partner.

2. Choose a company name

Your company name must conform to Knowledge and Human Development Authority  (KHDA) rules as well as the rules of the Dubai government. 

Your company name must not contain any offensive terms or certain types of abbreviations.

3. Register the company

The next thing to do is to register the company with KHDA. Do not start a business in Dubai without legally incorporating your company.

4. Choose between the mainland or free zone

There are two locations you can decide to set up your business in – the mainland or in a free zone. Each location has its specific benefits and limitations.

You need to choose the right approach for your company and the kind of education you plan to provide.

5. Apply for an online education license

You must complete the paperwork required to become an online education provider in Dubai. To do this, you will need to:

• Submit application forms to the KHDA
• Provide copies of your passport
• Complete an application form for a free zone or mainland business company
• Complete tenancy contracts and get office plan approvals
• Receive your approval letter from the KHDA
• Produce shareholder certificates as well as a memorandum of association
• Pay the fees to get your Dubai educational training license

It typically takes a couple of weeks to get approval provided your paperwork is submitted correctly. 

Once you have completed these steps, you will be ready to start an online education business in Dubai. 

Also Read: Real Estate vs Precious Metals: Where Should I Invest My Money in UAE?

What Documents Are Needed for a Tutoring Service Business In Dubai?

To start an online educational business like tutoring services in Dubai, you will need to collect the following documents as part of your application.

• A KHDA letter of approval
• Tenancy contracts for your office space
• Free zone or mainland company application form
• Shareholder certificates
• Memorandum of association
• An appropriate visa
• Passport copies

Setting up a tutoring service business cost between AED 15,000 and AED 50,000 

2. E-commerce store

When thinking about what business to start in Dubai, the e-commerce business should be considered.

The United Arab Emirates has the highest internet penetration in the world, it also stands to be one of the most suitable places to start an e-commerce business. Dubai is its business headquarters. 

UAE is an eCommerce leader in the Gulf Cooperation Council (GCC) with more than 60% of the online buyers based in Dubai. It also holds the largest B2C e-commerce market. 

You can already see that it is profitable to start and run an e-commerce business in Dubai.

How Can I Start an E-commerce Business in Dubai?

To start an e-commerce business in Dubai, here are 7 steps to follow;

1. Discover the market potential

Consider market trends and choose the right business model. Keep in mind customers’ requirements, and the uniqueness of your business. 

Based on the market potential, you can go for a business-to-business(B2B) module, a business-to-client(B2C) module, or a client-to-business(C2B) module.

2. Choose a suitable location  

Just like in the case of the Tutoring service business, you can choose between the free zone or the Mainland. 

Location is a very important factor to be considered when starting an e-commerce business in Dubai. However, you do not need a physical office set up to operate your e-commerce business in the UAE. 

The advantages of operating from a Free zone include

• Zero percent income tax.
• Hundred percent repatriation of business profits.
• Zero percent corporate tax.
• Hundred percent business ownership.
• Negligible custom duties. 

If you choose to set up on the mainland, you will get official authorization to run both international and local businesses. You’d however not be getting a hundred percent ownership.

A local business or individual would have to be the major shareholder in your business.

3. Register your company’s trade name

You can register your trade name in the United Arab Emirates by filling up an application form provided by the Economic Department. 

Ensure to choose a name that is legitimate in Dubai. Make sure not to use any foul, religious, or controversial words in the trade name. 

Your name must be unique and not use a name similar to already existing companies in Dubai. If you choose to name your company after a person, you must use their full name.

4. Apply for an e-commerce license in Dubai

An e-commerce License in Dubai allows you to use various social media platforms to carry out multiple business activities.

If you have a free zone license, you can work with a local distributor. With a mainland license, you can initiate the process of trading products and services directly to the local market.

5. Develop your eCommerce website

The ‘E’ in e-commerce stands for electronic, having a website is therefore non-negotiable. Not just any website, but a stable, optimized, user-friendly, and secure one for your customers. 

6. Establish a payment gateway

You need a merchant account from your local bank or a payment service provider to integrate a payment gateway into your website. 

Following the Telecommunications Regulatory Authority (TRA) guideline, you must have optimized payment gateways in place to handle the user traffic. 

Make sure your website builder provides 24/7 customer support features in situations of payment failure.

7. Customer and logistic support

For your business to survive, you must provide support to your customers. You have to handle technical aspects, database, and import-export facilities too. 

In Dubai, you can either choose to build logistics at your own expense or go for third-party logistics support.

It costs between AED 5500 to AED 12500 to get an e-commerce license in Dubai. If you add the cost of building a website and other things needed, you will require between 25,000 to 40,000 AED.

Also Read: 7 Best Investment Opportunities with High ROI in Dubai

3. Social media management

With experience in social media marketing, you can offer social media management services to businesses in Dubai. This includes creating and managing social media accounts, creating content, and running social media advertising campaigns.

Research across the Middle East region shows that $7.5 billion was spent on digital advertising in 2021. A third of this amount was allocated to social media. That figure has gone up in the last 3 years.

Setting up a social media agency that can tap into this market represents an enormous opportunity.

With a good understanding of social media marketing and the various advertising platforms and technologies available, you can start a social media company in Dubai. Here’s everything you need to know about starting a social media agency in Dubai.

How Can I Start a Social Media Agency In Dubai?

Starting a social media agency in Dubai is quite straightforward. There are some administrative steps involved that you should know about. Here are 8 steps you can take;

1. Select your business activity

When you decide what business to start in Dubai, this is the first step you must take. 

The emirate permits companies to perform thousands of different business activities, you onlly need to select all the services you expect to offer.

2. Choose a company name

When you’re don selecting your business activity, the next step is to choose a name for your company. 

As earlier stated, there are several important rules when deciding on company names in Dubai. These rules include

• Avoid any offensive or blasphemous terms
• Do not use abbreviations if you’re naming the company after yourself (e.g. Ashwin Kumar Agency rather than AK Agency)
• Avoid using any names that are similar to well known organisations
• Check that the name hasn’t already been taken by someone else

3. Choose location

You can either choose to launch your social media agency on the mainland or in a free zone. 

Free zones offer advantages like, 

• 0% income tax, 
• Repatriation of funds and 
• 100% foreign ownership. 

Mainland businesses on the other hand can bid for government contracts and allow you to base yourself anywhere in the emirate.

4. Identify your niche

As a social media marketing agency, you need to have a nich. This will enable differentiate your business from others and target specific kinds of customers. 

Whether you choose to focus on B2B  or B2C, you will need to adapt your business operations to the market and client needs.

5. Complete your licence application

You need to handle this step carfeully as any error made here could slow down your approval.The business licence application is an especially important step when setting up a marketing agency in Dubai. 

You will have to submit the licence application to the relevant authorities, provide a business plan, give details of the company’s directors and financial information, and pay a registration fee. 

6. Hire the right people

At the beginning of your journey, you may work by yourself and collaborate with freelancers. Over time, as your business grows, it will be more efficient and cost effective to hire staff. 

You will need to find staff with the right skills, correct paperwork and right to work in the UAE.

7. Technology

Social media management software, hardware for graphic designers, etc. are important investments you must make..

8. Get a corporate bank account

Another important step in starting a social media agency in Dubai is to open a corporate bank account. 

You can work with a local partner who can support you through the process and make things easier for you..

Other businesses you could start with 50,000 AED in Dubai include

4. Food delivery service

You can begin a food delivery service that partners with local restaurants to deliver food to customers in Dubai. The food business in Dubai is lucrative given the number of foreigners resident in the city.

This is a business that can be run from home and can be started with a small team of delivery drivers.

5. Cleaning service

You can start a cleaning service that offers professional cleaning services to residential and commercial customers in Dubai. This business can be started with a small team of cleaners and can be expanded over time.

6. Food truck business

Dubai has a thriving food truck scene, and starting a food truck business can be a relatively low-cost way to get into the food industry.

7. Cleaning service

Starting a cleaning service can be a low-cost option, and there is always demand for this type of service in Dubai.

8. Pet care service

Starting a pet care service could be a good option in Dubai. This could include dog walking, pet sitting, or grooming.

9. Consulting Services 

With expertise in a specific field, you could start a consulting business. your business could be designed to help other businesses and individuals with your knowledge.

10. Content Creation

Content is a perfect business to start if you are talented in writing, designing, or video production. 

You could start a content creation business that caters for other businesses, helping with their marketing efforts.

Whatever business you decide to start, it’s important to do your research and create a solid business plan. Calculate the costs associated with licenses and permits, equipment, and marketing.

With 50,000 AED you can start a business that will thrive in Dubai.