08 Jan Top 10 Challenges Faced by New Entrepreneurs in Dubai
Dubai’s robust economy and business-friendly atmosphere are well-known worldwide. With advantages including excellent infrastructure, a prime location, and tax reductions, it makes sense that business owners aspire to operate in the “City of Gold.”
The legal procedures to start a company for New Entrepreneurs in Dubai is a straightforward process, needs little documentation, and is easy to register. Although it is simpler to launch a business in this city than in some others, there are still obstacles to overcome when embarking on a new venture.
You will be more prepared for what it takes to launch your business in the United Arab Emirates if you are aware of the laws and ordinances that are related to company setup in Dubai.
What are the rewards of establishing a company in Dubai?
1. Business Hub
When it comes to location, Dubai is the most desirable city for conducting business. It is among the Middle East’s most lucrative commercial capitals and corporate centers. This trading zone involves trade between the various markets of Africa, Europe, the East Coast of America, and Asia.
These continents have some of the busiest seaports and airports in the world since they are quite easy to access and contain developed economies. Therefore, you have a great chance to establish your company and engage in international trade because such large marketplaces are so easily accessible.
2. A Thriving Economy
We are constantly in awe of Dubai’s constantly expanding economy. With one of the strongest economies in the Middle East, The Emirates has an exceptional yearly trade surplus and per capita income. Financial circumstances that are both highly steady and advantageous are offered to companies.
Furthermore, in recent years, investments in Dubai have grown significantly. The remarkable infusion of foreign wealth has reinforced Dubai’s economy even further. To develop globally, several billion-dollar conglomerates, affluent businesses, and flourishing startups have relocated to Dubai due to the city’s robust economy and business-friendly environment. Therefore, you can confidently invest in Dubai if you want to start a new business.
3. Superior Facilities and Infrastructure
Dubai offers top-notch facilities and faultless infrastructure. You will find everything you need to start your business, from standard requirements to fully furnished offices. Everything demonstrates how excellent the city’s infrastructure is, including an abundance of power sources, first-rate warehousing, excellent public transportation, state-of-the-art telecom networks, extensive road networks, luxurious residential buildings, and much more.
4. Facilitation of business dealings
To start a company, new entrepreneurs in Dubai can seek assistance from professionals at Shuraa Business Setup. Operating a new firm is made easy by helpful government agencies and state-of-the-art technologies. In Dubai, there are a gazillion different financial options available to support the quick expansion of your company.
With the support of numerous financial organizations, your unconventional business idea can become a reality. The assistance is given in the form of technical support, mentorship, financial support, and professional advice. Furthermore, small enterprises are given at least 10% of government contracts annually, per a law passed by the UAE government.
5. The policy of minimum Taxation
Dubai is an ideal place for hassle-free business prospects due to reduced taxes, including personal, income, customs, and corporation tax. In other words, you are spared the need to become knowledgeable about Dubai’s tax rules. Furthermore, you will save the hassle of modifying the cash flows and financial strategies of your company to lower taxes. Your business can grow more quickly with the support of complete export and import tax exemptions, complete capital and profit repatriation, and no currency limits.
What are the Challenges faced by new entrepreneurs in Dubai?
To start a company, new entrepreneurs in Dubai can face a lot of difficulties. The following is a list of typical obstacles an entrepreneur in Dubai will encounter when starting a business:
1. VAT application
Dubai, United Arab Emirates, was tax-free until 2018. Many entrepreneurs from around the world took advantage of the tax incentives to launch their businesses in the region because of the low tax burden. However, the nation has now adopted the VAT system of the Gulf Cooperation Council. One of the most difficult aspects of opening a business in Dubai is adjusting to the new VAT regulations.
2. Hiring the right workforce:
Specific skills are necessary for your firm to grow as well as for it to survive. Understanding the precise skills, you need and how to bring those important people on board may be the difference between how well your start-up succeeds and how poorly it does. It costs money to take longer to find the best employees.
A small group may find that the hiring process takes up valuable time that could be used for other commercial endeavors, but on the other hand, a lack of qualified candidates can result in severe delays and postpone the introduction of new goods or services. No start-up, especially in the early stages, can afford to deal with this issue. Hiring the ideal employees for your business is therefore a crucial step.
3. Restricted Funding Availability
The largest obstacle to launching a new company in Dubai is a lack of capital. The two biggest obstacles are getting access to capital and not having enough bank funding. The startup company model and the necessity of long-term investment are often misunderstood by banks and investors.
For entrepreneur’s needs, a variety of financial sources—including crowdfunding platforms, angel investment networks, business accelerators, and venture capitalists—are sometimes insufficient.
4. Locating the ideal Space for an Office
Choosing the ideal location for your business in Dubai is an important choice that will have a significant impact on the development and success of your enterprise. Depending on the area you decide to operate in, the space you receive may also have a size limitation. Before the business opens, all necessary papers must also be filed and submitted.
5. Managing Your Money
It should come as no surprise that new business owners must manage their finances carefully, but in Dubai, this is particularly crucial. Why? Due to Dubai’s reputation for luxury, you run the risk of getting carried away with your purchases if you do not keep a careful eye on your money. According to a recent survey, inadequate money management is the reason 81% of businesses in Dubai fail. So, watch how much money you spend!
6. Language Barrier:
Since Arabic is the primary language in Dubai, foreign business owners who are not fluent in the language find it difficult to set up their companies on their own.
7. Strong Rivalry:
To ensure greater business efficiency and to stay ahead of the competition, entrepreneurs must maintain a consistent focus on quality and ongoing innovation.
8. Strict Governmental and Legal Regulations:
Understanding legal frameworks, ownership arrangements, and government requirements can be challenging for many businesses. Licensing and business registration come with hefty expenses and Dubai’s business and tax rules are prone to impromptu changes.
9. Accepting Cultural Values
Dubai is renowned for its multicultural workforce. The city is committed to modernity and forward-thinking, yet it nevertheless retains a strong Islamic tradition. This might not be what you are used to in your home country. It will be necessary for you to be aware of these Islamic principles when conducting business in Dubai.
10. Human Resource Management
Being able to manage people well is a big advantage for running a business, not only in Dubai but globally as well. But since you will be working with people from a variety of backgrounds in Dubai, people management is a skill that must be acquired and used effectively.
Overcome the obstacles with Shuraa Business Setup!
As you can see, even in Dubai, where business setup is supposed to be simple, there are obstacles involved in starting a company. For this reason, hassle-free business establishment services are provided by Shuraa Business Setup. Not only will we help you set up your firm, but we will also provide you with guidance and consultation along the route to ensure you fully comprehend how to navigate the business world here in Dubai.
To Start a company, new entrepreneurs in Dubai can now contact Shuraa Business Setup for a seamless business establishment. With more than 20 years of experience, the experts at Shuraa Business Setup will make sure you have all the paperwork and meet all the deadlines required to successfully establish a profitable business in Dubai.