AI isn't the only big opportunity for UAE startups — here's what experts are backing

Dubai: Entrepreneurs looking to start a business in the UAE should pay close attention to artificial intelligence (AI), food security, manufacturing and compliance, according to several business leaders at a panel discussion in Dubai.

The business leaders say these sectors are creating new opportunities as the country's business landscape continues to evolve.

Speaking during a panel discussion at the RESET & RISE – The Road Ahead for Business event, organised by Ajman Free Zone and supported by Gulf News, industry executives said entrepreneurs are increasingly choosing the UAE for its fast business setup process, relatively simple regulations, and access to regional markets.

While AI dominated the discussion, panellists at the event also pointed to industries that have gained momentum following recent geopolitical developments, particularly businesses linked to supply chains, logistics, local manufacturing and food production.

George Hojeige, Group CEO of Virtuzone, said AI presents one of the biggest opportunities for entrepreneurs. "I think AI is a huge opportunity at the moment," he said, adding that businesses across industries are now looking at how they can integrate artificial intelligence into their operations.

He said sectors such as data centres, e-commerce and AI-driven businesses are attracting growing interest, while many entrepreneurs are creating companies to solve challenges exposed by recent disruptions to global supply chains.

Hojeige also identified manufacturing, transport, logistics, oil and gas services and food security as sectors seeing increased demand.

"We see a lot of demand for food security, manufacturing, supply chain, transport and logistics," he said.

Zubair Ul Islam, Director of Sales at Ajman Free Zone Authority, said agriculture and food production remain underdeveloped sectors with significant growth potential. "I have a little bias towards agriculture," he said. "It's an underserved territory in this country."

He pointed to increasing investment in indoor farming and locally grown produce, saying food security will remain an important priority for the UAE.

"If I had Dh10 million to spend right now, I'd let everyone go towards AI and go towards food security."

Islam also highlighted manufacturing as an area where the UAE can continue to attract international investment, particularly from India and China.

Rather than focusing only on India's largest cities, he said there is significant potential in tier-two and tier-three manufacturing hubs that are already exporting globally but need support entering the UAE market.

Alongside growth opportunities, panellists said businesses can no longer afford to overlook accounting, taxation and regulatory compliance.

Huzefa Vorajee, Founder and CEO of Evolve Accounting Group, said compliance has shifted from being a back-office function to becoming central to business operations following the introduction of VAT and corporate tax.

"It's no longer something that you can prove as a back office function. It's something that's front and centre of your business," he said.

He added that investors are increasingly looking for well-regulated markets. "Investors don't just look at jurisdictions that are lower tax; they look at regulation as well."

Hojeige warned that many first-time entrepreneurs mistakenly believe obtaining a trade licence is enough to start operating.

"There are a lot of other corporate services that need to be taken care of," he said, citing accounting, VAT registration, payroll, HR, insurance and compliance.

He advised founders to outsource these administrative tasks where possible so they can focus on growing their businesses rather than dealing with paperwork.

Sharjeel Akhtar, General Manager at A&A Associates, said entrepreneurs should also think beyond company formation.

He said succession planning, corporate structuring and asset protection should become part of the business setup process from the outset, particularly as founders accumulate personal and business assets in the UAE.

The panel also discussed why free zones continue to attract startups and SMEs.

Hojeige said flexibility, faster licensing and fewer setup requirements remain the main advantages over mainland company formation.

"The flexibility, the agility and the speed of setup are what attract entrepreneurs most," he said.

Islam added that each UAE free zone serves different industries, with manufacturers, healthcare providers and technology companies choosing jurisdictions based on their specific business needs rather than competing solely on cost.

Sanaa Ouahmane, business leader and author, said women entrepreneurs are entering the market with greater confidence than ever before.

"Women are no more asking for a seat at the table; they are building the table," she said.

She advised aspiring entrepreneurs to focus on solving genuine problems rather than launching businesses without a clear purpose.

"The first thing I look at is: does this idea solve a problem?" she said.

She also stressed that investors back founders as much as business ideas, making resilience and personal credibility critical qualities for entrepreneurs.