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If you are prepared to take advantage of the possibilities and potentials offered by the UAE market, you should keep in mind that businesses face a number of difficulties and uncertainties. Because of the revolutionary advancements and economic plans, company creation in Dubai or business establishment in the United Arab Emirates is a welcome platform for investors. Nonetheless, just like with any big business location, there are a number of snags to avoid and roadblocks to overcome while there.

For those of you who are motivated and committed businesspeople – who are excited about the opportunities this wonderful nation has to offer – it is essential that you prepare yourself for the typical difficulties that will come your way while conducting business in the United Arab Emirates.


Onshore or LLC company creation in Dubai and the surrounding area need a partnership with a UAE citizen in order to operate the business successfully. Furthermore, the rule stipulates that the investor will only be permitted to hold 49 percent of the company’s stock, with the remaining 51 percent of the company’s stock being held by UAE nationals. While some businesspeople agree on the requirements, others may find it difficult to establish confidence and dependability in their customers.

Finding a Business Partner in the United Arab Emirates: As a result, the next difficulty is to locate the most appropriate and ideal local business partner in the United Arab Emirates. Having a local business partner in the UAE is essential for the majority of legitimate company categories. So finding a local partner who would hold a significant share in the firm while still allowing you the freedom to do business on your own terms may be a difficult job.

VAT Has the Potential to Have a Negative Impact: The UAE is now a tax-free nation, but will it remain so indefinitely? Business in the UAE is conducted without the imposition of tax obligations, which has made the country an attractive commercial destination. However, the imposition of VAT, which is expected to take effect in 2018, has already raised concerns in the market.

Manage Revenue: It is critical to manage revenue since, although the UAE may offer tremendous possibilities for expanding your company, it can also be very hazardous to do so. 82 percent of companies fail as a consequence of insufficient cash flow management, according to the Association of Chartered Certified Accountants (ACCA). When starting a company in the United Arab Emirates, you may be approached by a number of banks and financial institutions that may give you a loan, or you may be ready to invest or spend more money than you have available. Managing the costs of company establishment as well as your initial financial requirements is essential before putting your plan into action.

Communication and Culture: Before establishing a company in Dubai or any of the other Emirates, it is necessary to consider business communication and Islamic culture. Every country has a distinct degree of business communication, and the UAE is no exception. The UAE takes a formal approach to corporate communication, and directness is discouraged. Men and women interact at various levels as well, as previously stated. The culture of the United Arab Emirates is unique in the world, and Islam plays a significant part in the everyday lives of its citizens.


The UAE market is hyper-connected, mobile, and caters to a sophisticated supply and demand chain, as shown by the following statistics: Entrepreneurs are rushing to the UAE in increasing numbers, claiming that despite the difficulties of conducting business in the nation, the country provides a gratifying experience. Consequently, it makes sound business sense to scale your company agenda in advance – and the best way to do so is with the help of experienced advisors!


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