UAE Business: Navigating Challenges for Success

Suppose you’re looking to take advantage of the potential and possibilities available in Dubai and the UAE market. In that case, you must be aware that there are a variety of problems and uncertainties that confront entrepreneurs. The company formation process within Dubai or establishing a business in UAE is an ideal platform for investors because of the enlightened advancements and economic strategies. But, like every central commercial location, there are a few pitfalls to avoid and obstacles to overcome.

If you’re a spirited and dedicated businessperson who is excited about the opportunities this country offers and is a great place to do business, prepare your business for these issues that will come your way when conducting business in the UAE.

A look at the challenges of doing business in the UAE

Here are five critical issues to conducting business within the UAE that business entrepreneurs are likely to face

UAE Company Ownership

An onshore or LLC-based company within Dubai and the surrounding UAE requires a partnership with the UAE national. Additionally, the law stipulates that the shareholder is only allowed to own 49% of the stake in the company, while UAE nationals control 51% of the stake. Although some businessmen agree with the requirements, it could be difficult for other business people to establish trust and credibility.

Finding A UAE Business Partner

Therefore, the next step is finding an appropriate local business partner within the UAE. For the majority of legal business sectors, having a UAE company partner in the local area is essential! Therefore, searching for the right local partner – one who will hold the most significant part of the company and is willing to manage the business in your way- can take time and effort.

Probable Implication of VAT

UAE is a tax-free nation, but will it remain that way? Business in the UAE is conducted without taxes, which has made the UAE an ideal destination for business; however, the possibility of introducing VAT in 2018 may have caused doubts in the market.

Manage Revenue

Controlling revenue is essential, and while the UAE could provide enormous possibilities for expanding the scope of your business, it can be similarly risky. According to the Association of Chartered Certified Accountants, 82% of start-ups fail due to inadequate cash flow management. When setting up a company in the UAE, various financial institutions and banks may contact you with loans or be keen to invest or purchase over your budget. The cost of setting up your business and the initial capital requirements must be accounted for and subsequently put into.

Cultural Diversity & Communication

Communication in business and Islamic culture must be considered before creating an enterprise in Dubai or other Emirates. The quality of communication in business differs in each country as well. UAE is a formal place, and directness is not a priority. Women and men communicate at different levels. Emirati tradition is the mainstay of the modern UAE, and Islam is a significant factor in the people’s everyday life.


The UAE market is highly connected and mobile and can accommodate an advanced supply and demand chain. The ever-growing interest among entrepreneurs says that regardless of the obstacles to conducting business in the UAE, it is an enjoyable experience. It makes a lot of business sense to increase the size of your business plan before launching, and the most effective way to achieve this is with assistance! Effective Desk Business Setup in Dubai provides business setup services in UAE that will ensure you will not need to fret about these problems and other issues that may occur.Finding the right local partner can take time, relying on an unidentified business partner is challenging, and even managing your money can be stressful. Additionally, the business requirements you encounter could be inaccurate. We at Effective Desk know these issues and can guide you on the right track! Get in touch with us to learn more, and you’re guaranteed to be dealt with.

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