How to Start an AI and Deep Learning Business in Dubai?

Is the hype about AI all around the globe worth it? Well, let’s discuss that in depth, but for this you need to understand the proper definition of artificial intelligence and how it works.

“Artificial intelligence (AI) is technology that enables computers and machines to simulate human learning, comprehension, problem solving, decision making, creativity and autonomy.”

Tagged to AI are other concepts called deep learning and machine learning.

These words are interchangeably used in the present years, but both these are stand-alone terms with different definitions.

Machine learning is a subset of AI that works automatically by understanding minimal human interactions.

This requires a large amount of data to interpret the outcomes. On the other hand, Deep learning is a subset of machine learning but in a more complex layering of the algorithms, computing units, and data.

Handling all of these can open doors – ‘how to start an AI and Deep learning business in Dubai.’

In this article, let’s understand things in depth with relevant examples and how to establish a business based on AI & Deep Learning.

Why Dubai is Ideal for AI and Deep Learning Startups?

Dubai has already established itself as a global business hub in many business genres like trade, fintech, import & export, banking, and finance.

With all these on the list, there is a big opportunity for the AI and deep learning business/startups. UAE on the whole has a lot of investors who are ready to invest in these startups.

Business-Friendly Environment

The UAE government has outlined its Vision 2030, with one of its key goals being to establish the country as a global leader in AI and innovation.

As a result, businesses in the AI sector benefit from government-backed initiatives, funding, and partnerships.

The UAE government offers various incentives and support structures for foreign investors, including:

• 100% foreign ownership in many free zones and sectors.
• Tax exemptions on income and corporate tax for certain business types.
• No currency restrictions or capital repatriation limitations.

World-class infrastructure and technology

Dubai offers the best office space for employers to work in peace. Also, they have a strong, uninterrupted telecommunication network, which is essential for developing these AI products.

The city’s technology-driven ecosystem provides businesses with access to high-speed internet, cloud computing platforms, and data centers, all of which are essential for AI-based services.

Supportive Government & Investors

As discussed in the previous sections, many investors are looking to fund AI and deep learning startups. Here are the initiatives taken by the government:

• Vision 2030: This strategy aims to position the UAE as a global leader in AI by promoting research, development, and implementation of AI technologies across various sectors.
• Dubai Future Foundation: The foundation supports AI startups and businesses through funding, mentorship, and access to global markets.
• Smart Dubai Initiative: This initiative promotes the integration of AI technologies in various sectors, such as government services, healthcare, transportation, and education.

Key Applications of AI and Deep Learning in the UAE

No doubt that leveraging AI in business will be efficient. According to future predictions, AI can handle most of the work that humans are managing these days.

Here is a list of a few industries where every AI can use deep learning is already started the race.

• Finance: At present, banks and fintech companies use AI for fraud detection, customer service automation, and risk assessment.
• Healthcare: AI is enhancing patient care, medical diagnostics, and personalized treatment plans.
• Retail: Machine learning algorithms power recommendation engines, demand forecasting, and supply chain optimization.
• Real Estate: Predictive analytics helps in property management and investment decisions.

Applications of AI in Business

• Predictive Analysis – These types of analysis uses machine learning algorithms to forecast future trends, behavior, and outcomes. In industries like healthcare, finance, and banking, professionals use these data to predict results and give recommendations.
  As more advanced predictions, these AI & deep learning are used in stock predictions and algo-based tradings in the present market.
• Language Processing – When we go back in time, i.e., 10 years ago, there was a concept of voice process, chat support, customer care executive – a whole BPO service. But at present, these don’t exist as they have been replaced by AI natural language processing.
• Robotics & Humanoids – The major role is to cut down on labor costs in logistics, warehouses, airports, and more.
• Image Recoginition – This has already been executed in almost all smartphones to enable security. Even countries have adopted facial recognition technology to store every citizen’s data. In the future, these might help in astronomical image processing and identification.

Choosing the Right Business Model and Services

Types of AI business models

• AI-as-a-Service (AIaaS) – Artificial intelligence as a service is the new business model where the experts provide AI-based solutions to solve industry-related problems. AI will become a utility—like electricity or cloud storage. Businesses will be able to “subscribe” or “subscription”. For example – Need fraud detection? Plug it in. Want customer sentiment analysis in Arabic? Just turn it on. Need legal document summarization in a UAE law context? Done.
• AIaas Custom solution development – AIaas will provide beyond the generic tools used for business solutions. Each solution will be customised according to the user’s requirements.
  SaaS products based on deep learning. Most of the business development solutions and strategies will be given by AI, understand each industry in detail.
• Core services you could offer – As AI and deep learning experts, your skills can be turned into services. You need to understand this point: “To operate AI-based products/solutions/devices/machine, you need humans who designed AI models.” Any kind of data enrichment, machine learning update, chatbot, and AI assistant business executives will be the most in demand service that you can offer as a AIaas.

Where to Set Up Your AI Business in Dubai

Free Zone Vs Mainland

Free Zone Setup:

There are specific free zones which is suitable for AI and deep learning businesses: Dubai Internet City (DIC), Dubai AI campus, Dubai Silicon Osais, etc.

This particular jurisdiction focuses on leading the way for developing small-scale businesses like digital services, technical services, office setup, and more, which don’t require cross-market access.

Along with these, they have the freedom to have 100% ownership of, low corporate tax, and 0% income tax policies. Here, the registration process is easy and simple with minimal governance.

Therefore, choosing between mainland and free zone setups completely depends on the nature of the business, operational requirements, and long-term growth strategy.

Mainland Setup:

As discussed in the previous context, the UAE splits the country into the mainland and the free zone to provide offers based on the type of business that entrepreneurs are willing to set.

The mainland offers a direct connection with diverse markets, allowing them to network and engage in trade aspects and more.

This is more convenient for large-scale businesses like trade, import/exports, tech, and fintech industries. Along with this, they have friendly policies similar to free zones.

Pro tip: Despite the freezone or the mainland, choose where the future of AI as a service is in demand. This way, you can strategically establish your business and look for clients which best suits your needs.

Ideal Free Zones for AI Businesses

Multiple free zones are best suited for AI startups and enterprises, with specialized zones and infrastructure designed to accelerate innovation.

The Dubai AI Campus at the World Trade Centre serves as a dedicated tech cluster, providing robust support for AI development. 

Dubai Internet City and Dubai Silicon Oasis offer tech-focused environments with plug-and-play office solutions ideal for startups and scale-ups.

Meanwhile, the DIFC Innovation Hub is particularly suited for AI applications in finance and legal tech, benefiting from its strategic location within the region’s leading financial center.

Step-by-Step Process to Start Your AI and Deep Learning Company

Step 1 – Market Research and Feasibility Study

Take time to do the ground research and assess the local demand for AI solutions across different industries.

The major ones are finance, healthcare, logistics, and government. Look into your niche, like discussed previously, it would be –  predictive analytics, computer vision, or natural language processing.

Now, define your ideal customer base and conduct a competitor analysis to understand pricing models, service gaps, and tech capabilities of existing players.

Once you’re done with this, select the ideal location and calculate the budget for future purchases.

Step 2 – Define Your Business Activity

Considering the list of AIaas service models above, choose which of the following you want to execute and pitch to the clients.

You can approach only one product/solution based on the selected industries. But there are no boundaries to your skill set. If you can manage across different industries and provide value, then give it a try!

Step 3 – Choose a Legal Structure

This is the crucial step to complete the AI and Deep learning business setup in Dubai.

The relevant options are a Free Zone Company (FZC), a Limited Liability Company (LLC), or a Branch Office to expand an existing entity.

Each location has its perks – like FZC offers 100% ownership. LLC is the best option to operate in the mainland, so you pitch in to a lot of investors. While choosing one, consider factors like the capital requirements, investors, and the clients that you want to hold on a long-term basis.

Step 4 – Name Reservation & Initial Approvals

Follow the Department of Economic Development (DED) rules to name the business before initial approvals.

This might help you reserve your business presence before anyone else approaches for the same. Let the name focus on AI/technical terms and also reflect the service/product you sell.

Make sure all the documents you submit are accurate without any discrepancies.

Step 6 – Office Space & Tech Infrastructure

AI and Deep learning business requires a huge spacious space to focus and give the best outcomes. Opt for co-working spaces, flexi-desks, or private offices in tech hubs like Dubai Internet City or Silicon Oasis.

Ensure you purchase high-performance computing, access to robust connectivity, GPUs, and secure storage for R&D.

AI and Coding License and Regulatory Requirements 

Dubai’s AI & Coding license initiative

Dubai has launched an Artificial Intelligence (AI) and coding license to encourage investments in AI and attract AI companies and coders from around the world to the UAE.

The license also aims to achieve the vision and goals of the UAE’s Artificial Intelligence Strategy 2031.

In this license, companies are able to work at the DIFC innovation hub, which is the largest cluster of FinTech and innovation companies in the region, representing over 60 per cent of all Gulf Cooperation Council countries (GCC) FinTechs.

Eligibility and who can apply

Companies holding the license will be able to work within a stimulating environment at the DiFC innovation hub. This hub hosts more than 500 firms, ranging from start-ups to global unicorns.

Benefits: Residency visas, access to innovation hubs, tax exemptions

By securing an AI & Coding License in DIFC, you may become a candidate for a UAE Golden Visa. The AI License will qualify the employees of companies registered with the DIFC for a Golden Visa.

The Golden Visas provide professionals with a chance to acquire a 10-year residence in the UAE. Dubai-based company setup experts can assist you with this.
Reduced visa costs of up to 50%

Funding and Investment Opportunities in Dubai

Executing business based on AI and deep learning in Dubai will require a large budget when compared to any other business.

The amount of resources, tools, machinery, and humans involved varies on the size of the business, but costlier equpiments are required.

At this point, Government initiatives like Dubai Future Accelerators and AREA 2071 come into rescue.

They provide funds, mentorship, and access to innovation labs with high-potential ventures.

Startups can also tap into a thriving network of private investors, venture capital firms, and angel investors who actively fund emerging technologies in the region. 

Along with these, business owners should also join major tech events like GITEX Global and AI Everything to pitch – investors, showcase innovations, and network with key stakeholders.

Additionally, Dubai encourages public-private collaboration, offering AI startups the chance to work directly with government entities and large enterprises on strategic pilot projects and long-term partnerships.

Challenges and How to Overcome Them

The major challenge could be locating the right place to start your business, followed by the funding process.

The first problem can be solved by us – Arnifi. Connect with our experts and provide them with your business insights.

We can guide you through the right location and the process to be followed for business setup.

As discussed previously, the funding can be taken care of by government-backed solutions.

Or, as an alternative, you can join major events happening in Dubai and connect with investors, entrepreneurs, startups, and more.

Conclusion

If you’ve reached this far, Great! By now, you would have understood the vast opportunities available in the AI & Deep learning industry.

AI is not as simplified as chatGPT but much deeper. Understand different aspects of it and leverage them to bring out something innovative that solves problems for a wide audience without hindering or replacing people’s art and unique skills.

Once you are done with ideation – finding a solution to the problem- connect with our experts and get better insights on how to execute.