What are the challenges of doing business in the UAE?

What are the challenges of doing business in the UAE?
The United Arab Emirates [UAE] is one of the common places to seek opportunities as shown by the increasing number of immigrants and ex-pats that show up seeking greener pastures. Could this necessarily pose that the emirates have a 0-100 business bloom transformation within the shortest period, and therefore interpret that there are no challenges experienced in this flourishing country? 

Today’s topic will beam light on some grey things to consider before venturing and while doing business in the UAE for our clarity. 

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What are the challenges of doing business in the UAE? 
Doing business anywhere has its own challenges, ranging from the popular of them: governmental policies, this happens anytime, and over the years has seen celebrated business names go under just before your eyes, pathetic right? 

The UAE which is made up of 7 Emirates, all have different laws that spread through the industries in their terrain, some have been carefully harnessed to provide a source of living, while other business names just consider basic needs/services that would not fail. This could be from hotel services, healthcare, restaurants, and the likes. 

Even at this, there are still some challenges these businesses experience, below are some examples for your guide. 

1. Language barrier
Unless you’re rendering an online business that requires no physical communication, there is a need to learn and understand the country’s language. This is golden and should be first considered before any other thing. 
2. Verification
For any business name, there is a need to get settled in legally. This means having your papers up to date, and your business name registered with its required body. Although there are some Free Trade Zones in each emirate that has less stringent regulations compared to the Onshore jurisdiction that has companies set up, however with a UAE shareholder of at least 51% stake in the business. 

3. Taxation
Before now, the UAE has been known as a tax-free country up until 2018, where it introduced a 5% tax to organizations, and anyone who defaults payment would be sanctioned accordingly. 

4. Funding
Cash flow management is crucial in any terrain. Several banks and financial organizations in the UAE may approach you with various loans or financing options. It is best advised to collaborate with a local partner to assist with expenses and recurring capital requirements. 

5. Culture 
There is a need to understand the culture while at the emirates; some good examples are that foreigners are permitted to go about their religion, courtesy is golden always, the weekday starts Sunday-Thursdays. 

How is business done in UAE? 
 Clearly, the founding and operation of enterprises in the UAE are regulated at both the federal and emirate levels. In the UAE as a country, there are only two ways to conduct business: through joint ventures/partnerships or through a Free Zone. 
Is it a smart idea to establish a business in Dubai?
With the little things observed in the UAE, Dubai has been good to a good number of businesses with a carefully thought business model. Starting and operating a Dubai business can be lucrative, going by the expanding economy, thereby providing numerous chances. Industries in the services, banking, commerce, and real estate & properties sectors are a clear testimony of how businesses in Dubai have blossomed. Little wonder why the city has been regarded as one of the most cosmopolitan in the Middle East. 

Is it difficult to start a business in Dubai? 
Maybe difficult is relative since there are some fundamental things required to get you started up legally as a resident in Dubai, but from an overview, if you seek the right people with the right inquiries, starting up a business in Dubai wouldn’t be that a hurdle, especially if you are rendering a quality service or product. 

It is also pertinent to note that compared to other nations, startups in Dubai also benefit from investment incentives and tax breaks. 

This article has been made possible by The Watchtower - Web Design Agency Dubai, your go-to hub for Web design, Web development, Digital Marketing, SEO analytics, and all-around IT solutions.

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