September 7, 2020

How to set up a mobile app company in the UAE

🕐5 minutes to read

Consumer spending on mobile apps and app installs grew significantly during the first half of 2020, in part due to the COVID-19 pandemic, according to new data from Sensor Tower. In the first half of the year, consumers spent $50.1 billion worldwide across the App Store and Google Play — a figure that’s up 23.4% from the first half of 2019. Previously, revenue had grown 20% between the first half of 2018 and 2019, for comparison. In addition, first-time app installs were up 26.1% year-over-year in the first half of 2020 to reach 71.5 billion downloads.

Apple’s App Store accounted for 18.3 billion of those downloads, up 22.8% year-over-year, while Google Play delivered 53.2 billion new app installs, up 27.3%.

Here in the UAE, the app market is even more inviting. Why? Because the Emirates boasts the highest rate of smartphone penetration anywhere in the world. Perhaps unsurprisingly given the country’s tech- and business-savvy population, some 82% of the nation’s estimated 9.5m residents owns a smartphone. The UAE also leads the way in app downloads in the MENA region with over 50% of smartphone users having downloaded more than five apps.


Setting up a mobile app business in the UAE

Another reason why the UAE presents a great opportunity for those wishing to tap into the mobile app market is the ease with which it is possible to set up an app building company here. If you’re intrigued by the app market, are planning to attend HostApp, or better yet, are ready to start your app business here in the Emirates, here’s everything you need to know.

Free zone or mainland? As mobile app businesses are usually seen as “virtual” – i.e. the app can be built and then traded from anywhere in the world – there is no UAE mainland licence on offer for this type of company. Therefore, mobile app businesses must always be registered in free zones.

Choosing a free zone: Setting up in a UAE free zone brings with it many benefits: 0% corporate and personal tax, 100% company ownership, 100% repatriation of capital and profits, and 100% import and export tax exemption, to name just to name a few. However, while all free zones offer these advantages, some are a better fit for mobile app companies than others. Due to the nature of the free zone, Dubai Internet City (DIC) is the most suitable. However, set up costs here can be quite high. For those looking to save on upfront costs, Fujairah Creative City Free Zone is a more affordable option.

Getting set up: Whether you choose to set up in Fujairah Creative City or DIC, the process is incredibly straightforward. However, DIC does require additional paperwork – this includes a detailed business plan and a certificate of incorporation, along with the passport copies and application form that is required by both. Fujairah Creative City on the other hand is generally light on paperwork and bureaucracy and does not require any share capital, an annual audit or any formal bookkeeping.

Flexible office options: Both DIC and Fujairah offer flexi-desk packages. These allow business owners to make use of office facilities such as desk space, meeting rooms, reception cover and call screening on an ad-hoc basis without the need to commit to physical office space. Fujairah Creative City also offers freelancer and single owner packages, which provide entrepreneurs with a fast and easy way to get their businesses up and running, with little commitment, no office space requirement and minimal startup and overhead costs.


The road to happiness

The UAE’s incredible business environment coupled with an abundance of smartphone owners makes the opportunity on offer here much more enticing than anywhere else in the world. And the best part is, it’s open to all with the requisite skills.

All you need is some mobile app knowhow and the drive to start a business, and the rest is easy. The entire company formation process is so straightforward that it can often be completed in a matter of weeks, requiring no more than a few hours of your time and some basic documents. In some cases, it may even be possible to register your business without visiting the UAE.

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