Planning to start a business in one of the most thriving countries of the Gulf Cooperation? Here is our list of tips prepared by our business consulting company in the UAE that will give you important ideas as to what to pay attention to in the first place and to be fully aware of the most common difficulties you may face.
Starting a business in Dubai is easy compared to other states in the Middles East and the majority of the countries all around the world. The UAE scores 31st in terms of ease of doing business.
Why so? A variety of strategically located free trade zones, great infrastructure, perfect investment environment, tax exemption makes the UAE one of the best countries for launching a business. Opening a new company in Dubai will take you about eight days, which is a positively surprising figure compared to numerous time-consuming procedures one has to go through when doing the same elsewhere in the world. And if you get in touch with our business consulting company opening your company in Dubai can take just a couple of days only.
Below are the most common difficulties you may face when starting a business in the UAE. Let us discuss them in detail in the next section of the article.
Operational financing might be troublesome
Searching initial capital to start a business is one of the primary concerns of any entrepreneur. Many businesses in the UAE have to rely on own funds and funds from family members or friends to get things going. Why?
Banks are reluctant to fund start-ups. They want to be sure that business is working before granting a loan. However, banks promise to expand the support for enterprises with a turnover of 2 million Dirhams shortly. Unavailability of loans from banks is one of the common difficulties for businessmen in the UAE.
Large investments are required
The cost of business is a serious obstacle for a novice in the UAE. So what do you have to pay for when starting a business in Dubai? The following list might surprise you. You are expected to cover the expenses necessary to obtain trade license, put money aside to rent an office (at least virtual one) and pay some other obligatory fees. It will take you a minimum of $ 10 000. (36 700 Dirhams) annually if it is with the virtual office package.
However, it is worth it as things pay off as soon as you win loyal customers and partners. And to choose the most cost-efficient option to register your company, you can get in touch with our office which provides the complete business consulting services in the UAE.
Bureaucracy is another hurdle
Typically you are not ready to such things. True, the UAE is one of the easiest countries for starting a business. However, even here there are some common difficulties such as procedures one has to go through and various mandatory documents you have to provide. Sometimes you’ll have to go to the customer service centre again and again because a specific document is missing or a particular fee was not paid.
And don’t forget to carry your company’s stamp wherever you go – just to be on the safe side.
However, if you want to make it all much easier for you – simply entrust your UAE company registration to us and our business consultants would handle it all on your behalf.
Adhering to your principles might be challenging
There is one particularly important thing you have to be aware of when starting a business in a different country – the rules of doing business in your country are not applicable here, and it’s OK. We’ll get back to this topic when discussing distinctions in cultural values.
However, one cannot forget about morals and professional courtesy. The world we live in is a small place, so it’s better not to do anything that might cause you to lose your face – news spreads around in a blink of an eye. Treat your competitors in Dubai or any other place with due respect – there is no need to trample on anyone.
Talent hunting is a tiresome job
Dubai is located in the centre of three continents. It is very easy to get to almost any place around the globe from Dubai. Sound tempting! This is one of the reasons professionals eagerly come to work here.
But even in this case, finding the right person, the one who would fit it perfectly well is one of the common difficulties.
You are looking for people who would share your vision, people who would be loyal and dedicated, and people who would know what they are doing. They have to be your brand’s advocates round the clock. It might take you considerable time to find such people, but once you’ve achieved this goal – you are the lucky one.
Promote informational technologies
Presently Dubai is one of the “smartest” cities in the world. The Government seems to give green light to businesses that strive to work via social media and other modern communication means.
Nonetheless, companies working in information technologies area may face some common difficulties with the registration and licensing steps. It may be a serious challenge, but with the right attitude, one can easily overcome it.
You might experience a certain lack of information in the UAE
There are numerous sites with detailed information on fees and registration rules related to starting a business in Dubai, but some entrepreneurs claim that there are no clear instructions concerning the process. When starting a business, your primary concern is to minimize the initial investment.
However, you might simply not know how to do that and which stages of the registration process can be performed in an easier way or dismissed completely. Don’t be penny wise but pound foolish. In this case, it is better to hire a business consulting company in UAE that specialises in setting the process up. It will save you time and ultimately – your money.
Remember about cultural values
We have already mentioned it when talking about ethics and professional courtesy. Business honour in Dubai can differ from your home market. The UAE is an Islamic country. Sticking to the traditions is highly important in all areas of the state’s life – from the legal system to doing business.
For example, Ramadan is the holiest month of the year and an important holiday in the UAE. Employees will work reduced hours during Ramadan, the same refers to restaurants and hotels. You have to take such things into account.
Time is an invaluable resource
Money is important; however, time is a bigger currency. If you, as a business owner, decide to spend a year to develop an innovative application that will facilitate the work of your enterprise in the future, you give your competitors a great opportunity to outdrive you. Please, focus on both – time and innovation. Time is beyond any doubt a precious resource.
Diversity is important
Right, we have already mentioned that doing businesses in different countries of the world requires a different approach. You have to be aware of distinctions of the market you are trying to enter and its cultural values. Since the UAE has a relatively small population, companies have to cooperate with various countries of the GCC area and the rest of the world.
Diversity ensures that you won’t depend on a single industry or geography too much.
The UAE market is both diverse and competitive. Needless to say that to survive under such complex circumstances you have to respect diversity. This is the way to overcome this common difficulty.
Travel a lot. It makes sense
Why is travel important? To stay on top and be competitive, you have to be aware of the innovations all around the globe. True, Dubai is one of the “smartest” cities, but technologies are being developed by thousands of professional in the USA and Europe.
Before offering a product, do your research – visit other countries and events to learn what’s new and thrilling in the market. This way you will always be ahead of your competitors.
Hopefully, this article about common difficulties one can face when starting a business in the UAE (and Dubai in particular) was helpful to you. And if you need further support - our specialized business consulting company in Dubai, UAE is glad to provide you with the thorough support.