This lively free zone is meant to focus on the requirements of contemporary business enterprises so as to create and foster opportunities which may spur innovation and further economic growth. Undoubtedly, the well developed physical setting and community focus at SHAMS is quite appealing for those wishing to establish or grow their businesses. But, understanding the ‘real world’ of business expansion in this fast growing area also involves a proper understanding of the many realities it also brings along with it. Analyzing SHAMS comments sheds light on critical issues that business owners need consider before venturing into such an attractive market. And of course, like any other activity, a good understanding of what the advantages and disadvantages are is necessary.

Reasons for Establishing a Business in SHAMS

Excellent Commecial Practices

The business environment within Sharjah Media City (SHAMS) reviews is unlike any other. The designed setting aimed for media and creative companies allows them to benefit from an ecosystem that promotes both collaboration and innovation. The numbers of creative entrepreneurs in the same neighbourhood gives rise to a synergistic spirit of creativity. Networking is not only feasible, it is encouraged and so is the sharing of ideas and forming of business collaborations. This closely knitted business culture is a big pull factor for many start-ups. Any new business that is looking to enter the media industry is bound to receive and plenty of assistance.

Ideal Market

Having SHAMS mall in any business is a good geographic edge because it is close to both Sharjah and Dubai. Surely, Myromatic Business Solutions will ensure you are able to benefit off this location advantage as it is crucial for accessing a wider client base and connecting with potential contractors or service providers. The location of Dubai’s infrastructural feats guarantees effective logistics and supply chain utilization. In addition, SHAMS can also avail widespread routes improving accessibility for international and domestic businesses. Such an ease in commuting gives more time and the opportunity for entrepreneurs to channel their energy away from logistics and more into expansion.

Incentives for Businesses

When an investor decides to set up a business in SHAMS: they benefit from 100% foreign ownership. There are friendly laws that allow entrepreneurs to have global collaborations. In the business environment of SHAMS, entrepreneurs are not required to pay corporate taxes during the early phase of the business. As a result, businesses can freely reinvest their profits back to the business and the business grows. All of these factors help to ensure that a certain degree of risk is reduced when a startup is being established. With the help of business friendly laws, the straightforward licensing structure also enables businesses to be set up with light red tape that in other situations would cause unnecessary delays. In general, business in SHAMS can be said to thrive thanks to this regulation.

Lots of Connections to be Made

Industries and creative sectors combine together and work to form a helping community which allows connections to be made at a much larger scale. Thanks to SHAMS, business owners can meet people from completely foreign businesses and create new deals. This is more focused networking that results in new collaborations that strengthen your resulting business, increase your attractiveness and know how and what new things you can provide. Everything that is built in this place can help secure certain assets, and gain vital information and mentoring. These include events, workshops and community gatherings that also aid these relations. SHAMS enables these relationships to be formed and as it turns out many entrepreneurs do need help in their journeys.

Disadvantages of Setting Up a Business in SHAMS

Initial Setup Costs

Although several advantages can be enjoyed by setting up a business in SHAMS, there are areas that potential Entrepreneurs need to be concerned about, initial setup costs being one of them. These can be extensive and include a range of costs including the licensing, office rentals and more! For example, start-ups would not want to be on the receiving end of these costs especially if they are not financially sound. However, businesses such as these still target to break even which require great financial investment from them. If not managed correctly, the cost implications can take an entire organization backwards instead of forward, so appropriate planning is essential for organizations.

Limited Labor Pool

Setting up a business in SHAMS also comes with its own challenges, the most prominent of being the limited number of labor pool willing to work for the business and has skills specifically in the creative industries. When Compared to the cities in the region such as Dubai, acquiring reliable talents can be quite challenging. The shortage of professionals who possess the required expertise can impact the recruitment campaigns negatively and may compel businesses to spend more money on coaching their workforce. High competition for available talent may lead to poor remuneration which makes it difficult to operate. It is expected that in the future the businesses will be forced to have a comprehensive strategy in relation to recruitment focusing on the strengths of SHAMS in an innovative way.

Econmomic Ups and Downs

The economy, by its nature, is not constant and so are the enterprises in SHAMS. External conditions such as changes in the market or even government policies can influence a lot. Changes in the economic environment can cloud consumer appetite as well as investors, putting business growth at risk. As a result, risk management and planning for contingencies should be key elements. Enterprises need to be able to remain flexible and be in a position to meet the changing needs of the environment, in order to limit the adverse effects. Understanding such broad economic trends will also assist in informed decision making by the Companies in respect of strategy formulation.

Pros and Cons

• Favorable economic climate
• High business startup costs
• Convenient positioning
• Small labor market
• Friendly regulatory environment
• Subject to business cycle risks
• Broad-based networking diversity

Final thoughts

Investing into Sharjah Media City can be appealing especially for hand players in new media and related areas. It’s a growth-oriented environment, but not devoid of the downside risks as well. The potential of the enablement ecosystem together with trade-offs enable entrepreneurs to make sound decisions as to whether to set up business in SHAMS. The future outcomes depend on the combination of the conducive environment and the strategic considerations but only when the start ups are in a position to incur upfront costs and the business environment is competitive. In the end, it should be an optimized decision which corresponds with future strategies and vision.

FAQ

What type of business setups can be set up in SHAMS?

• Media and creative agencies
• Technology startups
• Production houses
• E-commerce companies

Do international investors have the right to start businesses in SHAMS?

Yes, businesses can be 100% foreign owned in SHAMS.

What are the initial business expenditure for SHAMS?

Initial costs differ but are generally, business license obtainment, office leasing, and furnishing costs.

Do business entities in SHAMS have any tax obligations?

Companies set up in SHAMS are entitled to a corporate tax exemption for a specified period and are exempted from income taxes.

Are companies allowed to operate outside the free trade zone while in SHAMS?

Companies performing freelance work are permitted to base their core business inside the free zone but may deal with customers located outside the zone.