So, what makes the UAE so attractive for GameDev companies? Here are three key reasons driving the industry’s migration to the region:
1. Extensive Support for IT and Game Development Firms
The UAE has invested heavily in creating thriving ecosystems for tech businesses. Free zones such as Dubai Internet City, DMCC, Abu Dhabi Global Market, and twofour54 offer highly favorable conditions for businesses in the technology sector, especially those in gaming and digital innovation. These zones provide not only prime locations but also a range of tailored incentives and support mechanisms to encourage growth.
The UAE also hosts several initiatives aimed at propelling the tech and gaming sectors forward. Some standout programs include:
AD Gaming
Located at Yas Creative Hub, it’s focused on bolstering the gaming industry in Abu Dhabi through financial subsidies and dedicated support services.
DTEC
The Dubai Technology Entrepreneur Centre offers mentorship and funds to tech startups, particularly in the IT and software development fields.
DMCC Technology Ecosystems
Supports emerging industries like AI, blockchain, and e-commerce, offering access to a global investor network and potential funding.
The Mohammed Bin Rashid Innovation Fund
Aimed at stimulating innovation across sectors, this fund helps game developers with financial backing through its Accelerator and Guarantee Schemes.
Abu Dhabi Investment Office
Focuses on attracting and supporting technology-driven businesses with investment incentives.
Each of these programs provides key advantages, from access to cutting-edge infrastructure to direct funding and networking opportunities.
2. Attractive Tax Incentives
The UAE’s tax system is one of the most appealing for international businesses. For example, the UAE offers a 0% corporate income tax on profits up to 375,000 AED, with a 9% rate on income above that threshold. These rates are applied after deductible expenses, making it an advantageous environment for gaming companies and startups.
A key incentive for companies based in the UAE is the IP-Box regime, which provides a 0% tax rate on profits derived from intellectual property (IP). To benefit from this regime, companies must meet certain criteria, such as demonstrating a substantial presence in the UAE and employing a significant number of people. This tax structure is in line with international standards, including the OECD’s BEPS Action 5 guidelines, making the UAE a competitive destination for IP-driven businesses.
In addition, the UAE offers a 5% VAT that’s relatively simple to comply with, and there is no personal income tax, which means that both employees and business owners are not taxed on their personal earnings. For businesses operating in multiple GCC countries, the VAT system provides a streamlined approach, reducing cross-border complications.
Overall, the UAE’s tax framework is among the most supportive of businesses in the world, positioning it as a strategic choice for companies seeking to tap into international markets.
