With recent developments in the UAE, Dubai is regarded as the ideal hub for all small and medium-sized businesses (SMEs). The UAE has approximately 400,000 businesses, with Dubai accounting for 95 percent of them. Furthermore, these SMEs account for 47 percent of Dubai’s development. However, to get a good business formation in the UAE, you need experts by your side.
In this article, you will learn everything about business formation in the UAE. A business setup in the country may be a great opportunity for you. Let us observe:
- SMEs are the backbone of Dubai’s business industry
- Suggestions for expanding and growing your business in Dubai
- The UAE has entered the market
- Why expand into the UAE?
- How can Connect Group help you with your business formation in the UAE?
1. SMEs are the backbone of Dubai’s business industry
Because of the various facilities provided by the government and reputable business consultancies, SMEs are now regarded as the backbone of the UAE’s business industry and have consistently supported the country’s growth and foreign investors. According to reports, SMEs account for approximately 60% of the country’s GDP.
The recent collaboration between Dubai South and the Union of European Expert Chambers (UCEE), along with recent government changes to simplify company formation, will only strengthen the economic foundation for the growth of SMEs in Dubai.
At Connect Group, we believe in the growth of SMEs and strive to assist you in growing your small business into a well-developed business. We are here to help your business grow, from its inception to its expansion and longevity.
2. Suggestions for expanding and growing your business in Dubai
Adapting to changing business conditions to grow your company is not always simple. However, expansion and growth are regarded as necessary for a company to survive the changing business climate and economic changes.
On the plus side, if you are thinking about expanding your business, you have made it through the startup phase and are ready to chart your course. So, before you embark on your journey of expansion, consider the following:
- What is the next step in your company’s development?
- Is your company prepared to expand into the UAE?
- Is it necessary to expand your company in Dubai?
- How will you plan and strategize the expansion of your UAE company?
- When will you be able to expand your business to Dubai, the UAE, and the Gulf Cooperation Council?
- Do you intend to future-proof your UAE company?
There are several ways to grow your UAE business, and the best option for your company will depend on the type of business, available resources, timeframes, and funds.
Thus, we have compiled a list of suggestions to help you grow your business in Dubai, the UAE, and the Middle East. Whatever path you take to expand your business, the experts at Connect Group have compiled a list of top ideas to get you off to a good start.
2.1. Open a new office
The growth path begins with a single step. Begin by opening a new location to broaden your brand’s reach. If your current business location is not working out, it might be time to look for a new one. Think about your target demographic in the potential new location. Additionally, keep the following in mind:
- Will there be enough foot traffic?
- Is the new location easy to find?
- Is the new location in an appropriate location to reach your target demographic?
- When it comes to choosing a location, make sure to enlist the assistance of an expert who can make suggestions and shortlist potential locations.
Without a doubt, business formation in the UAE is not an easy task. However, you can count on us.
2.2. Franchise your company
If you want to open a second location but lack the time or manpower, franchising your business is an excellent way to keep the wheels of growth and expansion turning. Franchising your business allows it to expand without requiring you to run and manage the new location.
Furthermore, franchising allows you to expand while also progressing and developing your business in other ways.
2.3. License your work
Licensing your product is a valuable, low-cost growth strategy for your company, especially if you offer a service or a branded product. Licensing reduces your risk and costs when compared to the cost of establishing your business to produce and sell your brand or product.
Before licensing your products, conduct extensive research to find a suitable licensing partner who offers products or services similar to yours. Find a competent attorney who specializes in intellectual property rights before scheduling a meeting or contacting any company.
Hence, this is the most effective way to reduce the possibility of losing control of your service or product.
2.4. Create an alliance
Associating your company with a similar type of company can be a powerful way to quickly expand. Strategic alliances between two companies can be a compelling way to enter new markets. Furthermore, a well-positioned partnership can provide immediate access to new customers.
Hence, collaboration does not always have to be about bridging markets. A partnership can also provide capital, access to technology, manufacturing processes, and other benefits.
2.5. Diversify
Diversification is a great way to grow your business because it allows you to create diverse income streams that can cover seasonal voids, increasing profit and sale margins. The most common ways to diversify are as follows:
- Offering complimentary goods or services
- Importing or exporting your own or other people’s goods
2.6. Go after new markets
Your current target market is performing well, but there may be other market niches to focus on. Are there any other options? You can expand into new markets by leveraging your current brand awareness. Hence, begin looking for opportunities in other markets that could benefit from your product.
2.7. Obtain a contract with the government
Winning a government contract is an excellent way to expand your business. There are numerous opportunities in the UAE. Many businesses are supported and funded by governments. Investigate government funding assistance to determine the types of contracts available in your industry.
2.8. Acquisition and merger (M&A)
A business merger may allow your company to increase its market share. Begin by thinking about what businesses are similar to yours or have similar offerings to yours. In addition, determine the advantages of combining strengths or purchasing the prospective company.
- Evaluate your liquidity and financial capability thoroughly.
- Create your ideal finance, sales, marketing, and operations team.
- Recruit the best possible leadership team.
- Set your goals and evaluate your progress.
- Ensure that information can be shared securely and efficiently.
Additionally, the Mergers & Acquisitions consultants at our agency have the knowledge and experience to guide corporate and private equity investors through the M&A process. We provide solutions to help you achieve your growth objectives, from introducing strategic partners to preparing investor packs, forming strategies, due diligence, and integration or divestiture.
2.9. Expand to include the internet
Many customers find a business via an online search engine. 76 percent of consumers research a company’s online presence before visiting or making a purchase. So, if you want to reach as many potential customers as possible, you must have a strong online presence.
Expanding your internet presence, from an engaging website to a social media presence, will allow you to target a diverse range of customers both locally and globally. If you already have an online presence, hiring a digital marketing firm to help you identify search terms for your product or service and launch a small Google ad campaign can help you improve your results.
So, once you begin to see results, you will be able to expand your customer base to include people you had no idea existed.
2.10. Explore new markets
You need to expand your business and enter a new market. Expanding your business into new markets can be overwhelming, whether you are an individual or a company looking to establish a commercial presence in Dubai, Abu Dhabi, the wider GCC, Mainland, free zones, or offshore.
Moreover, Connect Group’s experts are here to help you navigate the complexities of expanding into new markets. We provide a flexible, streamlined, and cost-effective approach to company formation and local partnerships, from initial application to commercial registration.
3. The UAE has entered the market
The seven states of the country are: Abu Dhabi, Dubai, Sharjah, Ajman, Umm al-Quwain, Ras al-Khaimah, and Fujairah. As an Islamic state, the emirates successfully balance traditional values and western economic culture.
With Dubai’s world-renowned transformation from a barren desert landscape to a playground for tourists and investors, typifying the emirates’ enormous ambition and productivity; it is difficult to avoid the region’s flamboyant and exotic profile.
3.1. Dubai
Firstly, we have Dubai. Perhaps the most well-known of the emirates, Dubai’s rapid expansion and reputation for entrepreneurial innovation have elevated the state to one of the world’s most sought-after destinations; with an open market and attractive tax breaks cementing its status as an economic powerhouse.
Dubai’s reputation speaks for itself, with 88 percent of UK investors choosing the emirates. So, if you are thinking about a business formation in the UAE, consider this emirate. In addition, we can help you with your company setup in Dubai Mainland or the free zones.
3.2. Abu Dhabi
Secondly, Abu Dhabi; the emirates’ capital and second-largest city, has rapidly industrialized and is a hub of political, industrial, and commercial activity. Abu Dhabi is known as one of the more westernized Arab cities, accounting for 15% of the Emirates GDP.
Although less accessible than Dubai, the market offers lucrative rewards for those who have the time, patience, and knowledge to enter it.
3.3. Sharjah
Thirdly, Sharjah; the UAE’s third-largest state, offers low taxation and trade duties as an incentive for investment. It also boasts quick licensing procedures for economic activity.
3.4. Ajman
With foreign investment up 100 percent over the previous year and the state cementing its reputation as a sound real estate investment prospect due to its strong protection laws; Ajman’s profile continues to rise.
3.5. Umm al-Quwain
Then, Umm al-Quwain; the federation’s least populous state, provides similar tax and trade incentives to Dubai for foreign investors.
3.6. Ras al-Khaimah
Ras al-Khaimah, which means “top of the tent” and covers only 656 square miles, has focused on developing its industry and is now the UAE’s largest cement producer.
3.7. Fujairah
Lastly, Fujairah. With a thriving free trade zone that mirrors the success of the Dubai Free Zone Authority, Fujairah is eager to attract foreign investors. Tourism is another expanding industry in the state.
4. Why expand into the UAE?
With the high regard for goods and services, there are numerous reasons to expand a business in the UAE. Dubai is a popular tourist destination, and despite the economic downturn, there are still infrastructure opportunities available. The UK’s reputation is a valuable asset throughout the Emirates, as expertise in areas such as desalination and healthcare is required.
In addition to industrial expansion, the Emirates are eager to develop their populations, with UK training, education, and consulting is a respected and valued commodities. With no corporate or personal income taxes, no foreign exchange controls, and complete repatriation of capital and profits, the United Arab Emirates is a promising market.
Hence, licensing or a company formation in the UAE are also viable options. In addition, check out our business licensing services.
4.1. Possibilities for business
The following are the key industries where businesses are interested in expanding their operations in the UAE will find investment opportunities:
- Business services and information technology. As with education, business consultancy and information technology services are well received in the emirates, though the ease of access for foreigners varies across the region.
- Financial services. The emirates value financial services as they continue to diversify their economies away from reliance on oil revenues.
- Education and healthcare. With emirate states eager to invest in their populations, a global expertise in healthcare and education is well-known. Dubai currently spends 22% of its budget on social spending.
- Publishing and media play a role in the creative industries, particularly in Dubai, and there is a demand for skills and investment in the region.
- Transport and infrastructure (water, power, etc.). Despite the global recession, construction and infrastructure are still being improved throughout the emirates.
5. How can Connect Group help you with your business formation in the UAE?
Whether you need help starting a new business or expanding into a new market, Connect Group’s team of professional business consultants has the knowledge, expertise, and experience to help your company grow. Additionally, we offer the best company formation services.
Do you have any doubts about business formation in the UAE? If you do, please contact Connect Group today to get help. We will be available to answer your call at +971 43 316 688 or at contact@connectgroup.co. Then, we will answer all the questions that you may be having.
Would you be interested in a better job experience? Take a look at our website thetalentpoint.com. There, you will explore all our open positions. In addition, you can send us your resume at contact@thetalentpoint.com.
