Tech venture company Scalo Technologies has established its headquarters in Dubai as it aims to invest $100 million in start-ups over the next three to five years.
Originally founded in Singapore in 2020, Scalo said it chose to base its operations in Business Bay, Dubai, due to the emirate’s high level of business activity, growing economy and strong government initiatives to attract entrepreneurs and professionals from around the globe.
The move will help the company to “identify and guide start-ups with the potential to enter global markets”, and it sees Dubai as the “perfect international hub to drive its plans in the tech and gaming sectors”, Scalo said in a statement on Monday.
“Dubai is at the heart of the Mena region, which is actively growing, and provides us with many outstanding investment opportunities,” said Abdumalik Mirakhmedov, director and co-founder of Scalo Technologies.
“We want to capitalise on the chance to connect with global start-ups, and also to meet UAE-based and Mena-based founders.”
Start-ups are growing globally as entrepreneurs work to develop solutions for a world that is becoming increasingly digital in key sectors such as retail, services and commerce.
A record 540 companies achieved a unicorn status ― worth more than $1 billion in 2021 ― up from 150 in 2020, according to a latest report by advisory company Startup Genome.
Dubai, which is seeking to cement its position as a global capital of the digital economy, recently launched the Dubai Economic Agenda (D33) plan.
The strategy aims to catapult the emirate into the world’s top cities by economic strength in the next 10 years and involves a programme to help 30 private companies to achieve unicorn status.
Dubai is at the heart of the Mena region, which is actively growing
Abdumalik Mirakhmedov,
director and co-founder of Scalo Technologies
Scalo, which has moved its management and operations team to Dubai, said it is particularly interested in cloud-based artificial intelligence solutions and gaming companies. It intends to invest in a wide variety of businesses including game developing, publishing, FinTech apps and AI companies over the coming months.
Nearly 50 per cent of the $100 million investment earmarked for start-ups over the next three to five years will go to Mena-based tech and AI companies, the company said.
“Our key idea is to help founders of start-ups with the potential to scale up their business to enter global markets, no matter the language or location of their potential customers,” said Rashit Makhat, co-founder of Scalo.
“[We] are constantly searching for breakthrough ideas that can grow worldwide. At the same time, we are always exploring new opportunities in other fast-growing sectors. Markets displaying multiple growth potential over the next five to 10 years are of particular interest to us.”
Scalo has so far invested in companies including Megarender.com, the online cloud render farm, and Voctiv, a technology company that helps businesses worldwide to build fully autonomous, AI-powered contact centres.
The specs
Engine: 2-litre 4-cylinder and 3.6-litre 6-cylinder
Power: 220 and 280 horsepower
Torque: 350 and 360Nm
Transmission: eight-speed automatic
Price: from Dh136,521 VAT and Dh166,464 VAT
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Tamkeen's offering
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- Option 3: 30% across five years
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
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Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
