- Big Investment: Requirements of paid-up capital to compulsory trade license fees and office space, entrepreneurs get some around Dh 36,730 as an annual cost, varying on the kind of start-up business.
- Operational Finance: Majority of companies use loans or personal resources from family and friends to start a business. This is due to the limited appetite of banks to lend money to the start-ups. They prefer approving the loan after examining the performance of the business for a couple of years. However, there are some banks who claim their extended support but require a minimum turnover of Dh 2 million. This is quite funny because if there would have been such a turnover of a company they would look somewhere else to raise funds rather than from a bank.
- Incorporation and Licensing stages: The UAE is one of the ‘smartest’ countries around the globe. It is ‘smart’ when it comes to making it best suitable or ideal for connected start-ups, infrastructure, and However, businesses based on social media face difficulties during the stages of licensing and incorporation.
- Hiring: UAE is a hub for three continents and expat professionals from nearly 200 countries of the world. Even then, finding a right team can be very challenging and difficult.
- Availability of information: While every licensing authority has its own website giving detailed information about the regulations, fees, and incorporation, there are some entrepreneurs who say this could be simplified. The founder of FZE (a social fitness platform) says “There is a lack of clarity of the set-up process”. Moreover, finding the process of what is required and attempting to do it yourself can be a risk.
- Expensive lifestyle: Dubai is an expensive place. Living here can be very expensive without a paycheck. Start-up businesses without any external investment must have enough in their bank account to support their lifestyle on yearly basis.
- Diversity: UAE is based on a small However, it operates on large operations across borders. Commercial opportunities differ from country to country. Additionally, UAE is highly competitive and sophisticated. Starting a business in the UAE is quite easy as compared to some of their markets, supporting great infrastructure. As a result, it has become a highly competitive environment, thus, one needs to be careful.
Dubai is a small place and people do criticize. You can easily lose trust. However, focus more on your business than your competitors. It is the key to success.