The Most Common Challenges of Starting your Business in the UAE
UAE’s economy keeps on growing rapidly making it an ultimate business hub for more and more investors every day. With the great business opportunities that the country offers, friendly policies, and the numerous benefits there is no doubt it is one of the destinations sought by all entrepreneurs from around the world.
However, challenges of setting up your business cannot be ignored. Like anywhere else, there are some difficulties that you will face if you decide to start up your business in UAE or any other country in general. Below we will present you the most common challenges that you are most likely to face when you are setting up your business in UAE.
Ownership and Partnership
If you are planning to set an onshore or an LLC company in Dubai or UAE, this will require you to have a local partnership with a UAE national. Having a local partner means that they will own 51% of the company while you will own 49%, which sounds unpleasant to some investors for the fact that they have to find a partner that they can trust. That being said, it can be really challenging and tedious to find a partner that will give you the freedom to run your business while owning 51% of it.
According to research, the majority of startups in UAE fail due to poor money management. You need to know how to manage your financials right before starting your business. For example, you need to consider your budget well when it comes to renting your work space, it’s location and the number of employees you are planning to hire.
It is very vital to take culture into consideration when you are setting up your business in Dubai. Dubai is a modernized country with strong Islamic heritage. This can be challenging to foreign investors who are not familiar with the city’s norms and traditions. Hence, it is essential to know about and study the culture well to know if the type of business you are planning to set will fit it and to respect their traditions and values in your business interactions.
In addition to this, it is also essential to take into consideration the diversity of nationalities and backgrounds in Dubai when you are hiring your employees. You need to know how to hire the right candidates and know them well on both professionally and personally, so that you would understand how to deal with them and how to motivate them.
The procedures of setting up your business in the UAE are all over the internet. However, with the limited information everywhere and not knowing which sources to trust, the process of company formation can get complicated and take longer time than planned. That is why hiring a specialized company is always advised to assure your company set up process goes smoothly and with no any extra costs.