Question

UAE considered an attractive market to start up your business, discuss how to break through the UAE market, and why sometimes you may fail?

Answer 1

UAE is considered an attractive market to start up the business because the economy is growing exponentially due to trade. Plus it is considered as a global destination because of its strategic location midway between Europe and Asia. Companies can enter the market with 100% foreign ownership and setup business. There are long term visas for business owners, which reduces the hassle of constantly applying for visas which is the case in different regions of the world.

The budgetary spend has been fueled by oil based income which leaves greater room for the government to spend on stimulus packages to increase the expenditure on healthcare, wellbeing and education. This increases the quality of life drastically and improves company specific productivity.

More number of long term residency visas imply that the market will be constantly flooded with new talent and there would be constant demand for products which will bring about long term growth and create a stable environment for startups.

With the Expo which is an exhibition of talent, there will be a huge influx of visitors and tourists which would create exponential demand for local entrepreneurs and increased flow of funds provides greater stimulus for one to enter the market.

One might fail however if there is decline in demand conditions such as when there is a worldwide pandemic, which would lead to decline in oil prices, leading to less stimulus being provided by the government and less flow of funds, wherein one might fail if the government and the local economy depends too much on oil revenue.