Local market of the Emirates – specific aspects of operations

The United Arab Emirates provide quite attractive platform for foreign investors and businessmen. However, operation at the UAE market due to objective reasons has its own specific features. If you plan to bring your business to the global level by incorporation of an international company in the UAE, you should know some of the rules and customs of business community of the Emirates.

Fundamentals of building business in the United Arab Emirates

First, effective and profitable business in the UAE requires your physical presence for holding negotiations and carrying out other current affairs of the company. It goes without saying that business effectiveness depends on features of the jurisdiction and tax benefits thereof; besides, there are ways to reach completely new level. Business development may be achieved by attracting new business partners. This factor is of great importance in building profitable business solution.

Moreover, it is mandatory to have a local partner for international companies running business activity at the local market of the Emirates (such sponsors shall own at least 51% of the share capital of the company). Integration of local partners brings new knowledge, experience and ideas, new opportunities and useful connections at the local market. In addition, local partner acts as your representative and assistant when dealing with regulatory public authorities.

It is worth noting that finding a local partner for international business on your own is a difficult process. This is accounted for multinational status of local population, scale of the local market and existing differences in business practices.

Our specialists will help you find a reliable partner that shares similar views with you with respect to doing business and similar business mentality. Our extensive experience relating to provision of services at the local market of the Emirates allows us to use only effective, time-confirmed structures. Use our feedback form and get free expert advice.

The UAE market - traditions and customs

Note for businessmen -tacit laws of the UAE market:

• Business negotiations may be conducted for quite a long time period, but this time will not be spent in vain;
• If you are looking for partners to sell products, be prepared to provide samples. This is the specificity of the local market and oriental mentality - if the goods cannot be touched, there is no point in bargaining. On the contrary if you have samples of your products, customers will be in abundance;
• In it impossible to achieve high sales at the local market without direct contact with the end user. The seller shall prove his serious intentions to the buyer. For  promotion of products experts recommend to advertise in local media (TV, newspaper, radio);
• Be prepared to hold business negotiations not only with senior directors, but also with managers of companies, banks, enterprises and institutions. Personal business negotiations are given special emphasis in the United Emirates; this is the main difference from the European business mentality. Any mail correspondence is a waste of your time;
• Just like any new market, the beginning of your business activities in the UAE may entail some costs and expenses. These are the cost related to new market analysis, promotion and advertising of your goods, etc. However, you can be assured that all your costs will be covered by unlimited business opportunities in the United Arab Emirates;
• Relationship between business and the country. If you decide to start business in the United Arab Emirates, you can forget about  constant distrust with respect to public authorities. Here your business will not be subject to endless inspections of regulatory authorities. Responsibilities of local state officials are clearly defined and limited, they may not perform any actions beyond their powers. It is worth noting that any fraudulent action such as giving bribe to a public officer to  speed up a standard procedure may entail really negative consequences and complicate negotiations.

In general, the United Arab Emirates may be characterized as having the laws of civilized and competitive market. Provided that your business complies with applicable laws and obligations under signed contracts, it may be assumed that such business in the UAE will achieve success and prosperity.