How to cope up with Business Challenges in Dubai?

How to cope up with Business Challenges in Dubai?

The United Arab Emirates is known for its very impressive business setting along with its legal receptacle and the beneficial tax system. Each of the seven emirates that constitute the UAE has its own rules and regulations, which results in various challenges while doing business out there. It has an expanding and outstanding administration to aid in starting up a business.

The Free Trade Zones within are propelling foreign investment by proposing 100% foreign ownership. If you are looking to set up or expand your business in UAE, then the best emirate you could choose would be Dubai. With a prospering business terrain assisted by government inducements, setting up a new enterprise in the city of Dubai is an interesting choice for any entrepreneur. Even though it has ambivalence and quite new social standards, the country’s hospitality, and advanced forward-thinking policies reward those with initiative. Here we could discover various different talents across the world boosting from this stable, tax-free land with its diverse social and cultural vibrant lifestyle.

However, like any other country in the world, Dubai has certain attributes that could potentially develop some challenges while starting a business here. So, it’s important that you have to do your research before starting. This blog underlines the most common possible challenges that one might have to encounter while starting a business in Dubai.

Coping up with challenges of doing business in the Dubai

Dubai is constantly in the spotlight for its remarkable developments, fresh startups, foreign investment policies, and corporate structure. Despite all these things about the economic growth of the region, Dubai is often ratifying the objectives of the existing and expected investors and entrepreneurs with its following degree of development and growth. If you want to start business in Dubai, then you must learn the basics of challenges that you might encounter. Below are the possible challenges of running a business in Dubai:

1. Language Barrier

Arabic is the official language in Dubai. Additionally, in events like business meetings and transactions, English is used. However, each and every employment document, including contracts, and other reports like statements sent to the workers must be in Arabic.

2. Embrace the culture

The local culture of Dubai is linked to Islamic traditions. Here, even the business communication heeds a very formal manner and courtesy as they are highly honored. Foreigners are independent to exercise their own religion but have to show the same level of respect for their hosts.

3. Office Space

While setting up a company in Dubai, one has to undergo certain procedures including getting a license. A business license is always bound to physical office space. There are free zones that offer flexible business centers to empower companies with reasonable alternatives for office space. The requirements of a minimum office space vary from one jurisdiction to another.

4. Company Ownership

If you are a foreign entrepreneur and wish to start your business in Dubai, you have to share the business owner with a local partner. It must be through the local distributors, partnering with local businesses, authorizing, or beginning a representative office to join the business market. The foreign commodity also requires a local partner in order to set up a Limited Liability Company in Dubai.

5. Business capital

Dubai is an amazing place to relax and have fun. Consequently, there are of course numerous incredible ways to spend as well as waste your money. Moreover, this exact same thing applies to your business expenditures. As with any regime regulating cash flow is substantial. But, there is plenty to ooze the cash on, like just for an impressive office space. The Association of Chartered Certified Accountants found in their research that 82% of startups fail as a result of their poor capital and revenue management. The solution for this challenge is to act with a local partner to organize set up costs and ongoing capital prerequisites accordingly.

6. Work permits and Visas

We all know that Dubai is a region with a distinct population. Here, in order to reside and work one should require a work permit or a resident permit. This implies that it is crucial to ensure that you are law-abiding with all the regulations set by the General Directorate of Residency and Foreigners Affairs and Ministry of Human Resources & Emiratisation.

7. Tax Setting

Dubai began to heed the value-added tax (VAT) system, enforced by the Gulf Cooperation Council in January 2018. The VAT rate is only 5% and hence not influenced the expense to perform business in the country relatively. However, one of the biggest challenges of doing business in Dubai is to get conditioned to VAT. Also, the Federal Tax Authority has declared that if the Companies that are required to register for VAT have refused to fulfill the order will have to face the law and have to pay Dh 20,000. This penalty will be similar for those who did late registration.

8. Local Sponsor or Partner

If you are a dreaming entrepreneur and are planning to set up a business in Dubai, then the first and foremost step to do is find a local sponsor, partner, or advisor. Getting an accurate sponsor or partner to a satisfactory level is crucial. Similarly, the local partner you assign must have excellent knowledge and understanding of the law. Also, He or she should be able to handle the local operations.

9.International Relations

According to the Public Prosecutor, traveling or keeping up trade between Qatar is strictly prohibited for the time being. Even expressing sympathy for Qatar is prohibited. Those committing so will be liable to pay penalties and can even face a custodial sentence.

10. Timekeeping

The working hours here are different in comparison with most countries. The working days are running from Sunday to Thursday.  The ‘weekend’ covers every Friday for the prayer in Islam. Some service corporations and banks will operate on Saturday.


Elishay Smith

Lynn Redmile is a blogger and writer. She loves to express her ideas and thoughts through her writings. She loves to get engaged with the readers who are seeking for informative content on various niches over the internet.