The United Arab Emirates (UAE) has been a bastion for businesses for decades, with thousands of companies flocking to the region to conduct business. And despite the effects of the pandemic, the rate of growth is expected to pick back up in 2021. There has never been a better time to jump into business in Dubai, and there is no time like the present to formulate a winning business strategy to make that venture successful!
Whether you intend to create a new start-up or seek to expand your established business into the region, several key steps will help your company formation in Dubai. And in such an evolving market, the only way to develop this strategy is with a robust business plan structured around a solid grasp of business in the UAE. Below we’ll walk you through some of these crucial stages of business formation!
Success in the Dubai Market: What You Need to Know
Some of the first things to cover when developing a market strategy are determining how your new product or service fits into the ever-moving marketplace, identifying your competition, and recognizing what factors influence consumer spending. All these factors will combine to give you a better idea of the extent of your business’s profitability.
1. Conduct Detailed Market Research
With all enterprises, it’s essential to know what you’re getting into before you make the big dive. And the UAE is no different! The Dubai market is complex and can fundamentally differ from many other marketplaces in the world.
Market research is the practice of gathering, analyzing, and interpreting data from a specific market segment to determine just how your product will fit into the larger picture given current market trends. This research will also include data regarding your customer’s needs, and even your direct competition.
2. Design a Solid Business Plan
Once you’ve got a solid grasp of current market trends, you’ll be able to intelligently develop a strategy for your business. This process involves undertaking a feasibility study to determine if your business is likely to be profitable, as well as a thorough cost analysis to clarify the costs you face. Additionally, you will want to develop a keen marketing strategy.
3. Determine Your Business Structure
There are many different options for company formation in Dubai. An On-shore LLC company is one of the most popular options. Or one could take advantage of all that the numerous Free Zones have to offer. Regardless of which option you choose, you will want to consult with a local consultant familiar with business in the UAE.
4. Understanding UAE Government and Laws
Business laws and regulations in the UAE differ quite a bit from other areas of the world, and you will want to be familiar with them. Again, you will want to contact a local consultancy for help following local regulations, as failing to do so can be extremely costly to your business.
5. Consider VAT Taxes
VAT, or Value Added Tax, is a broad tax operation that provides numerous challenges to businesses operating in the UAE. Being only a few years old, the full extent of VAT’s impact is yet to be seen, but you will want to develop a clear, concise strategy to plan for this tax structure. Failing to do so can be extremely costly.
Benefits of Operating a Business in Dubai
Dubai has evolved into a monolith for business operations in the world market, rivaling many of the largest cities in the world. Starting as a small trading hub, it now stands as an enticing destination for businesses seeking to enter the larger world market.
The combination of increased foreign ownership, wide-ranging networking infrastructure, and relaxed immigration regulations makes this region perfect for a business to increase profitability.
But what are the benefits of operating a business in Dubai? There must be something that’s causing these businesses to flock to the region! Here are a few of them:
1. The Free Zone
Dubai is host to over 20 different Free Zones that cater to various business sectors ranging from services to manufacturing. These Free Zones give businesses the freedom to operate without taxes or repatriation charges for profits. The Free Zones of Dubai are a significant factor in drawing so much attention to the region.
2. Location, location, location!
The strategic location of Dubai in the gulf makes the city an especially ideal region to bridge the gap between the eastern and western markets, opening the door for businesses to sell products and services to more than 2 billion people worldwide!
3. Expanding Economy
Dubai stands as the most successful of all Emirates in terms of growth. This is partly by stepping away from the oil market after the recession of 2009, and moving into logistics, trade, exporting, and tourism. Diversifying from oil production freed Dubai from the restraints and volatility inherent in oil markets.
4. Market Diversification
Maneuvering away from oil has greatly affected the diversity of the market, opening avenues for all different sectors to conduct business in the region. Everything from medical research to media production is available in Dubai’s market.
5. Legal System
Dubai is one of the first Emirates to permit foreign ownership of businesses, property, and stocks. Additionally, the UAE partakes in numerous international treaties and councils that operate to safeguard intellectual property.
6. Investment Atmosphere
The economy of Dubai is maintained by the Department of Economic Development (DED), which is responsible for planning and enacting Dubai’s economic agenda. This department works to improve the economy and provide ample support to foster a rich investment atmosphere for the region.
7. Business Hub for the Middle East
Located at the intersection of eastern and western trade routes, Dubai offers quick and easy travel to and from many different countries, with a streamlined process to travel easily between them. This combination makes Dubai the perfect place to hold large events with investors from different nations.
8. Corporate Tax
As previously mentioned, Dubai offers outstanding incentives for companies looking to maximize profitability and expand their opportunities for growth. These incentives include no taxation on both income or corporate taxes for you or your shareholders.
Business Options in Dubai
Starting a new business in Dubai has never been easier or more profitable! But where does one begin? It can all seem overwhelming, but many different business sectors might be a good fit for your new enterprise. Here are some popular options:
– Service Sector: Consulting, bookkeeping, and advertising are all great options for people seeking to enter the service sector.
– Apparel: Dubai is often noted for its expanding fashion industry and has become a destination for many shoppers.
– Transportation: Starting a business in the automobile sector is an excellent venture for many entrepreneurs.
– Computer-related Businesses and eCommerce– Computers are a very profitable enterprise in Dubai, whether repairing them or utilizing the technology to conduct your business in an online marketplace.
– Education: This sector is rapidly expanding and would make a wonderful place to set up your business.
– Real Estate: With any expanding economy, a real estate boom is never too far behind! Dubai proves, time and again, that it is one of the most lucrative places to invest.
– Retail: Everyone needs to shop! Whether it’s for necessities like groceries or just for fun, shopping and retail are flourishing business enterprises in the UAE.
How MSZ Consultancy Can Help Your Business
MSZ Consultancy has served thousands of customers, helping businesses operate and flourish in Dubai and the greater UAE. We are experts in business operations across all seven Emirates, specializing in everything from company formations to visa applications.
Our business setup consultants have been in operation for over 15 years with an expansive knowledge of navigating the process, as well as tools to keep your business profitable and successful after formation. We offer some of the best business setup services in the UAE!
At MSZ Consultancy, we are firm believers in helping you form your business and giving you the tools to be self-reliant.
Give us a call today at +971 52 544 1248, and let our unique team of consultants, lawyers, and professional executives help you traverse the landscape of creating your business.