We are regularly being asked the question of how to enter the Dubai, UAE market and markets of other countries in the Persian Gulf with own raw materials or goods/equipment / machinery, in order to perform deliveries/sales.
Quite often we deal with situations of erroneous expectations on the Dubai and UAE markets as well as the markets in the counties of the region that the goods, once bought, would be purchased in any quantity and at any price as these countries are overwhelmingly reach.
The United Arab Emirates and other countries of the region are undoubtedly wealthy, but they would hardly buy off the goods at prices exceeding or not in line with the current market prices. The market of Dubai, UAE and other countries of the Gulf region is very dynamic having a high number of international companies present, offering various goods and services, therefore there is competition like everywhere else.
Since it is a fairly young and actively developing market, there are definitely opportunities to enter the market and execute deliveries and sales of goods, raw materials and equipment / machinery. For business growth there are noticeably more opportunities than in Europe as the markets are far from being saturated.
One should note that it is essential to come in person or send ones legal representative to Dubai for a long period of time to build relationships and establish contacts as well as grasp all the specifics of the mentality and business regulations, which definitely have their distinctions. When entering the market, whether trading with equipment / machinery, raw materials or other goods, one must take into account the specifics of the practice of the business when doing business in Dubai, UAE.
Even if your goods such as equipment / machinery, raw materials, food products etc. are competitive in terms of their prices, it will be hardly possible to place a contract at once. The business in this regions demands consistency, knowledge of mentality specifics and patience. It takes 1-2 years on average to fully introduce any goods into the market. If one is patient, the result will definitely follow. It might be the case that one will have to deliver at lower prices initially to prove ones reliability and punctuality as a supplier and also prove the quality of goods, then after 1 or 2 years larger orders will follow with high probability.
As in any other country, the quality and price of goods are often not the only hallmarks when choosing a supplier. The reliability and timely delivery of goods, raw materials and equipment are also very much valued and often extremely crucial.
If, for example, a factory buys raw materials from an existing supplier, whereas you have the same raw materials at lower price on offer, it doesn’t necessarily mean that the factory will purchase it from you straightway. The reasons are the potential risks of not timely deliveries and the possible quality characteristics fluctuations which can eliminate the gain of the additional profits from the lower price and put the whole production at the risk of a total hold as well as delays in final products delivery to customers.
Finding your own niche for delivering raw materials, equipment, machinery and other goods is by all means possible provided they are competitive on the market and that the necessary steps are made including its certification and attestation/legalization of the product documents confirming that it is line with the required standards in quality, safety etc.
If you haven’t got the possibility to come to the Emirates for an extended period to build relationships and grasping the specifics of doing business in the region, you can use the service of our company, which can be your trade partner/agent for introducing and promoting your goods on Dubai’s UAE market and other countries of the Gulf countries.
We provide support for entering the market as trade agents for foreign companies. Our specialization is first and foremost the industrial equipment and other equipment of any kind as well as raw materials.
The principles of our work are that we work on a commission basis that we receive throughout the validity of the contract. Whereby we find the buyer, secure the signing of the contract and have further control over its execution locally including: documentation for shipment, banking issues, and handling other different issues within the contract execution. Our company’s commission in the contract depends on type of goods, the duration of contract and the total cost of contract. The target value of a contract must be not less than 10 million US dollars per year. This is due to the difficulty to find a serious customer for smaller shipments, since UAE by and large is focused on the mid-large and large business.
The conditions of shipment of equipment and raw materials will depend on the results agreements and the type of goods. The conditions may also include provisions of deferred payments. This ought to be paid attention to, since clients often have a misleading preconception that Gulf countries pay everything ahead. The common practice of trade operations in Dubai and other Emirates of UAE is similar to the common practice in the world and there are no particular differences. The only possible difference is a bank cheque as the method of payment within the country. The L/Cs are widely used for international trade.
Below are the preferred types of goods which our company specializes in acting as a trade representative/agents for foreign companies for entering the Dubai, UAE market and other countries of the region:
- Any kind of raw materials
- Equipment and parts for different industries
- Equipment and parts for oil and gas sectors
- Equipment and parts for infrastructural projects
- Medical and other special equipment
- Equipment and intermediate parts for marine cargo vessels industry
- Special equipment and machines
If your goods or equipment is not included in the above categories list, kindly send your short description of your business and we will let you know about its potential on Dubai’s, UAE market and markets of other countries in the region.
Important – we would like to draw your additional attention to the fact that we, as an agent/representative, act exclusively for the producers of goods and equipment or their duly authorized representatives.