The United Arab Emirates has been a welcoming corporate market for many businesses ever since the early years of this century is the reason why the UAE has massively developed in the past 25 years. The investor market is potent and enthusiastic, the consumer market is always demanding for something new, and because of healthy trade relations with its neighbouring countries, there is the abundant availability of resources. In recent years, many administrative entities have emerged in the UAE that provides their expertise and services for growing businesses such as business setup in the UAE.
The Bright Future of the UAE Market
The coming years are a jam picked period for the business market of UAE ever since the government decided to get creative with a little pinch of enthusiasm to announce various long-term initiatives and strategies. These strategies would impact the corporate landscape of the crown jewel of the middle east. The government announced several policies that would require the participation of small and large businesses across the UAE, leading to a future where many public-private partnerships are eminent. These strategies are –
- Abu Dhabi Environment Vision 2030
- Smart Dubai Initiative 2021
- Dubai Blockchain Strategy 2021
- UAE Sustainability Vision 2021
- Sharjah Tourism Vision
And these are to name a few, not to mention the massive Dubai Expo 2020 scheduled to take flight in October 2020 that will set the business market in a completely new and optimistic direction benefitting sectors like hospitality, trade, tourism, food and beverage, consultancy industry and so on. But many business owners end up making a few rookie mistakes even though the clouds of flourishment surround the Emirati nation.
Common Mistakes made while Starting a Business in UAE
1. Underestimating the Diversity in the Market
The inner Emirati markets of Dubai and Abu Dhabi have always displayed aggressively competitive players competing for customers, whereas doing business in Sharjah and Ras Al Khaimah have always witnessed upward demand for trade and logistics-related businesses. Similarly, every Emirate in the UAE exhibits a distinctive characteristic that spectates how a company will perform in the respective market. The geographic location, the largescale psychology of the consumer market and the availability of resources make each Emirate different from the other in a unique and diverse perspective.
2. Neglecting the Competition in the Market
Let us be a little straightforward here, the ocean is vast, and you are not the only shark looking for a big bite to feast on. We had previously mentioned that a lot of businesses contributed to building the economy of the UAE, which goes to show that competition is real but on the counter perspective opportunities are vast as well. Many new business owners often outweigh the liabilities to those of the benefits considering the opportunities of the market and neglecting the threats. New business owners need to understand that government initiatives and provisions have impacted each industry, and many businesses have taken advantage of these provisions to set up their venture. Therefore, we would suggest approaching a professional business setup consultant for a more thorough SWOT analysis of the market.
3. Lack of Proper Financial Planning
Many entrepreneurs struggle with investing entities like angel investors and venture capital firms to pitch their unique business ideas and acquire a healthy seed investment to grow their company in the market. What new businesses owners do not understand is the necessity to use the acquired fund to plan ahead for any form of market uncertainties. Financial planning is subjected to crafting a pocket-friendly budget for business operations, finding the most suitable prices from suppliers to acquire resources and creating a reserve fund that can sustain the business when in time of crisis. Appropriate financial planning can be a gamechanger in the real-world market scenario and companies that harness the ability to save funds from the capital and cut costs when needed will survive in the market for a more extended time.
4. Understanding the need for Professional Support
We cannot sugar coat the importance of market expertise for a new player in the business sector, so we'll just put it in an evident perspective. The UAE market is vast and ever-changing, but the entities that always keep a track on the changing trends of the market are consulting firms/consultancies. New business owners can seek the support of such business professionals to simplify the process of business setup in the UAE. We at Commitbiz are a team of professionals that strive to provide tailor-made services to our clients such as business incorporation, company secretarial services, accounting and bookkeeping and nominee director services. Contact us to know more about how to start your entrepreneurial journey in the United Arab Emirates.