Dubai has become the financial and commercial business center of the Middle East, and, it comes as no surprise, that more and more people and businesses are choosing to open their companies right there. This has also been largely helped by the investor-friendly environment established by the local government which is allowing business to flourish. However, there are still a few key differences and limitations that arise from the different cultural basis. With that in mind, if you are thinking about starting a business in Dubai, here are five things you will need to consider beforehand.
1. Have a well-laid-out business plan
Efficiently setting up a business in Dubai will require you to do a lot of planning beforehand. This is because, even though Dubai is a very modern city, it is still a lot more traditionally oriented than an average western city. The first thing you are going to need to do is figure out what your business is going to be doing, and articulate a plan on how you would like to go about doing it. Once you have an articulated vision and an idea, you should do extensive research in order to preemptively avoid and resolve any issues that may come about, as most business operations are permitted but there still are a few that are not.
2. Choose the right local partner
A very important thing to keep in mind is that it is required by law in the United Arab Emirates for foreigners to find a local partner who will have a 51% ownership of the company. Because of this, it is very important to find a good and trustworthy partner, in order to set your business up for future success. This doesn’t have to be a single person, it can be a company or a collective, and as long as they own 51%, you are all set.
3. Get proper approval for all of your business activity
DED (department of economic development) is the government body that is responsible for almost all business activities within Dubai. In order to start a business, you will need to register your company name with them, and secure all the proper licensing you will be needing. Because of this, it’s also a good idea to get familiar with the DED and research everything you will be needing, in order to eliminate any obstacles before they arise.
4. Financial transparency
Once you register your business, you will also be required to provide the Ministry of Commerce with proof that you have a substantial amount of money you can invest. So, in order to make this as simple and less time-consuming as possible, try to have all of your financial records prepared in advance.
5. Make sure you have all the documents needed
Starting a business in Dubai will require you to meet all of the requirements for a visa that allows you to both work and live in there. This also applies for any additional people you plan on bringing in to your business, so be thorough when checking the requirements for a visa and make sure you have everything you need.
Starting a business in Dubai may seem like having too many obligations, regulations and obstacles that you need to pass, and, you may, rightfully so, start questioning whether or not it’s actually worth it. However, don’t let this discourage you. Many people have made their fortunes by developing successful businesses in Dubai, so why wouldn’t it work for you? The regulations may look like they are there to deter you, but, it’s actually quite the opposite, they are there to keep everything under check and protect you. There is a big amount of government support for starting businesses, so if you choose your local partner wisely, and stay determined and persistent when it comes to achieving your ultimate goals, you are guaranteed to find success.