A business plan can help you determine whether your entrepreneurial idea has potential, improve your business concept, and is typically required for accessing funding. And, if you are looking to start a new business in Dubai, a business plan is more than just a nice-to-have.
In this article, you will learn everything about how to make a perfect business plan in the UAE. Let us observe:
- What is a business plan?
- Why is a business plan required in the UAE?
- Main reasons why you need the right business plan in the UAE
- Is a business plan necessary for your UAE startup?
- Learn how to write a business plan for the UAE
- What makes the UAE an excellent place to do business?
- Why should you work with a specialized agency?
- How can Connect Group help you?
1. What is a business plan?
A business plan is a written document, typically for a startup, that includes:
- A detailed study of the market.
- And operations to ensure the business’s commercial viability.
Business plans serve as a guide for owners in setting up and running their businesses. In simple terms, it is a business roadmap that shows where your company will be in the next 3 to 5 years.
A thorough understanding of the industry you wish to work in is required. Analyze the local market, target customers, and competitors’ offerings. You should be aware of the target audience’s needs and preferences. Making a list of your competitor’s strengths and weaknesses will help you gain an advantage.
This research allows you to learn about current trends and successful themes. Business success will be heavily reliant on market analysis and research activity, with one of the most important factors being the creation of a business plan.
Depending on your target audience, you can set up your business on the Mainland or in a Free Zone. For example, if you want to focus on the international market while keeping a limited focus on the UAE retail market; a Free Zone would be a good option.
If, on the other hand, your target market is the UAE’s local market, a Mainland license is the best option. Determine the legal structure, such as sole proprietorship or LLC formation.
The UAE is ranked 21st out of 190 countries for “ease of doing business”. However, in a different metric (“ease of starting a business”), it is ranked 51st. If you want to start a business in Dubai or the UAE, the process of forming your company is a little more complicated than in others.
The advantage, of course, is that once you are set up and ready to go, doing business in Dubai will be easy.
- Funding. If you want to get money from a bank or a venture capital firm, you will need to submit a business plan in the UAE.
- Free zone or industry requirement. The UAE allows companies to form in one of the country’s many free zones; each of which has its own set of requirements. Some of them require you to have a business plan.
- Your country of origin. Certain free zones require applicants from specific countries to submit a business plan as part of their application.
The short answer to this question is “possibly”. They will require a business plan depending on your business and the free zone you wish to work in. Hence, you must keep in mind the following things:
- Some free zones require them at all times. You will need to have a comprehensive business plan if you want to launch your startup in certain free zones. For example, the Ras Al Khaimah Economic Zone (RAKEZ) requires the submission of a business plan as part of the online application process.
- Certain activities in some free zones necessitate their use. Specific business types require a business plan in other free zones. Health and education-related businesses, for example, require one in the Dubai Multi Commodities Centre (DMCC).
- Application for sensitive nationality. Entrepreneurs from certain countries will need to submit a business plan as part of their application. For example, depending on the requested license activity, the Dubai South Free Zone requires certain nationalities to provide one.
While you may have written a business plan in the past, keep in mind that the UAE has slightly different format requirements than Western countries. Hence, it must be much more thoroughly researched.
Above all, your business plan must demonstrate that the activities your company intends to carry out are:
- Consistent with your business description.
- Permissible within that free zone.
- That the free zone has the necessary space and equipment.
In the UAE, you cannot provide a “generic” business plan. Your document should be tailored to a specific audience and clearly state its purpose. No matter if it is to apply for investment, admission to a free zone, or shareholders.
As previously stated, a business plan in Dubai or the UAE must include significantly more detailed research than is required in other countries. To support your business proposition, conduct market research and collect data from credible sources.
You should provide detailed and realistic financial data for your company, as well as future projections. Do not be tempted to provide overly optimistic estimates; these will most likely be scrutinized during the application process.
The free zones in the UAE that require you to provide a business plan will usually provide you with a template. It will include all of the information they require from you. In some cases, you will be able to fill out an online form; in others, you will be able to download a Word document and edit it yourself.
Stick to the format and only provide the necessary information.
6. What makes the UAE an excellent place to do business?
The United Arab Emirates is one of the wealthiest regions in the world, so economic activity is always brisk. As an entrepreneur, it is wise to locate your business in areas where you can make the most money. And, of course, the UAE can certainly provide you with that opportunity.
Go over the following points to get a better understanding the reasons why doing business in Dubai is one of the best decisions to make for an investor:
With a nominal GDP of $424.635 billion in 2018, the UAE has one of the world’s strongest and most diverse economies. The oil and natural gas industry is the main industry here, and the country’s economy is heavily reliant on it. In 2009, oil exports accounted for more than 85 percent of the country’s GDP.
However, the economy has significantly diversified in recent years, with the country experiencing sustained growth in sectors such as tourism, science, and technology.
The UAE has a sizable workforce that includes both locals and expatriates. Currently, the country’s labor force totals 5.344 million people, with 85 percent of them being expatriates. Because the UAE has a high standard of living and a thriving economy, many skilled workers flock to the country in search of excellent job opportunities.
This means that businesses in the region do not have to worry about a lack of manpower to run their operations.
As part of its strategy to attract more businesses to the region, the UAE government has provided numerous tax breaks. There are currently no personal or corporate taxes, trade barriers, or foreign exchange controls.
In other words, dealing with UAE tax laws will not be a hassle. You must pay no tax to the government if you register your company under the free zone umbrella. This can alleviate a significant burden on your company’s operations.
Everybody knows that the UAE has always been a hub of modern innovation. Thus, it is no surprise that the country has some of the world’s best infrastructure. For example, Dubai announced in 2016 that it would build the world’s largest wholesale city for a whopping AED 30 billion.
The goal of establishing the city is to assist the UAE in gaining a large share of the global economic sector.
If you want to start a business in Dubai, you will not have much trouble. According to a Doing Business 2019 report, the UAE is ranked 11th in the world for ease of doing business. It is ranked first in the region. The UAE performed exceptionally well in all of the indices. For example, it ranked:
- First in terms of obtaining electricity.
- Second in terms of paying taxes.
- Fifth in terms of dealing with construction permits.
- Seventh in terms of registering property.
7. Why should you work with a specialized agency?
To successfully launch your business in Dubai, you will require the services of professional and experienced business plan writers. They will create a business plan for the United Arab Emirates. The business plan must be realistic, scalable, and measurable, and we ensure that our business plans meet these three criteria at Connect Group.
We are a team dedicated to providing excellence to all of our clients, regardless of their needs or goals. We are here to assist you in developing high-quality business plans in which you can put your trust. Here are some of the benefits of working with Connect Group:
At our agency, believe that our experiences have shaped us into who we are today. Also, we have over twenty years of experience working with various types of businesses in various industries. Hence, we understand exactly what it takes for a business plan to be successful.
Every year, our team of professional business plan writers creates over 300 business plans.
Connect Group never takes a standard approach because we believe your company deserves more. We believe that a business plan should reflect the fact that each client is unique and has something special to offer through their business. As a result, we create a customized business plan just for you, tailored to your specific needs and goals.
Our clients are always prioritized. We make every effort to listen to your concerns, ideas, and feedback, and to dispel any doubts you may have. Also, our clients appreciate the open communication we exhibit, as well as the transparency we maintain in our relationships.
A solid business plan will instill confidence not only in the owners but also in the lenders. They are unavoidable if the startup intends to raise funds from banks, venture capitalists, or angel investors. A business plan also demonstrates your dedication and knowledge to your new venture of doing business in Dubai.
Though you create a business plan at the start of a company, you should review it and modify it regularly, as the company grows or once a year. At Connect Group, we have assisted clients in preparing business plans for submission to government agencies or their own professional use.
Would you like to contact us to obtain more information about how to make a perfect business plan in the UAE? If you have any questions, call us on + 97143316688. You can email us at email@example.com. Following, you will talk to one of our representatives who will answer your questions.