The
United Arab Emirates is a country of a rich culture that reflects in the residents’ life and work. The seven emirates that make up the UAE, all have separate codes of conduct so doing business in the country can be pretty challenging. Despite that, the country is booming with business opportunities and ladders of success. Although, it is important to conduct research beforehand so that you know what you are getting into and that you can handle it.
Business Set-Up
It can be quite challenging to understand the rules of free trade zones and onshore jurisdiction, the differences, the kind of power you hold within your areas. Setting up an operational entity in the
free trade zone would mean you can have 100% ownership but are limited to what can be done simply in the mainland. Whereas with an onshore jurisdiction, picking a
Limited Liability Company (LLC) would mean you need to have a 51% local UAE shareholder in the
company, But you’re free to set up anywhere in the UAE.
Prevalence of Culture
The predominantly used language throughout the UAE is Arabic and while most formal
business meetings are conducted in English, The official notices and documentation have to include the text in Arabic. In case of conflicting details in the English documents, the details and information in the Arabic documents will prevail. Islam tradition is prevalent throughout the country and is considered in high regard. Foreigners are allowed to practice their own religion of course, but that kind of acceptance and respect is also expected towards the Islam tradition.
Timekeeping/Working Days
Punctuality in the UAE is a bit flexible. Meetings might start and finish late, and there is a possibility that the people you’re having the meeting with, cancel it without any warning at the last minute! Weekend days that are off are also different here. People have workdays that begin on a Sunday and end on Thursday so as to respect Friday as the day of congregational prayer. Some
businesses run on a Saturday as well, but Friday is always an off.
Money Matters
A constant revenue stream is important for the
business to be operational. You might be approached by various financial institutions but to identify the one that benefits your
business is important. It is best to have a local partner who understands the nitty-gritty of the finance UAE. It is also important to mandatorily have a VAT registration for your business or you can be heavily fined. Paying your employees can also be a challenge because of the constantly changing laws and the Wage Protection System.
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