Every business entrepreneur wants to set up their business in the UAE because UAE is one of the most profitable business destinations.
Top ten challenges faced by the business in UAE are as follows:
- Finance: It is a challenge for the foreigners to set up their business in UAE because they need huge investment and being an outsider, it becomes difficult to get the loan and the sponsors. People don’t want to sponsor you because of trust issues as you are a foreigner.
- Recruitment: It is not an easy task to find the right person for your business, and especially the start-up business has to face a lot of problems because these days nobody wants to take a risk in working with a new company. There are also many rules to be followed in UAE before recruiting a person.
- Becoming famous: In Dubai if you want to start a successful business than you have to get yourself known to people because people here build a business relationship with you only after knowing you on personal grounds.
- Local business partner: To start a legal business in UAE it is must that you have a local business partner, but he has the major stake in the company. So, finding a partner who would allow you to do business on your own terms and conditions and who is trustworthy is difficult.
- Company ownership: In UAE, it is compulsory for the business to have a national sponsor who takes 51% of the business owner if you want to start a Limited Liability or an onshore company.
- Communication: There are many formalities in communication followed in UAE like the tone of communicating with men and women is different. Before setting up the business you should be aware of the minutiae in communication required.
- Business specifics: You can set-up business in any region of UAE, but every region has its own particulars regarding its business habits and lifestyle. To smoothly set up your business you need to be aware of the specifics of that region.
- Management: There are people from different culture and countries in UAE and who would be working with, so it is very important for you to increase the level of cultural understanding and responsiveness to maintain people in your business and attract them towards your business.
- Money management: This is also one of the biggest challenges of the start-up company to decide where to spend the money and where not to.
- Building an organized workflow: The key to business success is organization and many organizations in UAE face failure because they are not well organized. Things in an organization quickly move out here and there is it is not well organized.
These are the major challenges faced by the business in setting up their business in UAE, but these problems can be overcome because there are many companies available who will help you in setting up your business in the country.