Three Major Challenges of Doing Business in Dubai
If your business goes about it correctly, expanding to Dubai can be one of the best decisions you’ll ever make. We’ve covered some of the reasons why you should probably consider the prospect in the coming years in other posts, but it’s also important to consider some of the challenges that you might face. After all, pre-emptively identifying the factors that might cause some stress is the easiest way to overcome them and find success.
So, without further ado, here are the three major challenges of doing business Dubai that you should think about prior to making your expansion a reality.
1: ESTABLISHING YOUR PRESENCE
In some ways, this can refer to the level of competition that your business is likely to face in a global market like Dubai, but when we talk about establishing your presence, we’re looking mostly at the fact that business in Dubai is all about building relationships.
Unlike many other markets, business in Dubai is very much about learning who you are as a person, what kind of values you bring to the table and what kind of relationships you can build with one another. That means your initial steps as a business are likely to be challenging ones, unless, of course, you take the time to build some of these key relationships ahead of time.
Proactively get in touch with like-minded businesses in supporting industries and build a network that you can count on to streamline your transition, and you’ll be poised to hit the ground running.
2: UNDERSTANDING THE CULTURE
With an entirely different set of attitudes and beliefs than you might be used to, Dubai can be a challenging market to effectively penetrate if you’re too rigid in your approach to doing business. The way that you present yourself, how you treat others and how you manage meetings with potential clients or investors can all sink your efforts even before you make your sales pitch.
This also extends to your employees. Understanding—and being sensitive to—different cultural factors and ideas present among the local population can help you seamlessly ingrain yourself as a core, valued member of your new market.
3: MANAGING MONEY
It’s no secret that Dubai is an expensive city, for individuals and businesses alike. For businesses that are new to the region, incurred expenses are often quite the shock. That’s why, especially when you’re new to the region and there’s still some degree of uncertainty, it’s important that you manage your money very carefully and err on the side of caution until you build up a steady rhythm and cash flow.
This rings particularly true for startups—with a vast majority of new businesses failing as a result of cash-flow problems, staying smart with how you manage your money can prove vital to ensuring that you find success in Dubai.
Dubai has a ton to offer businesses, but it’s important that you don’t become blinded by the possibilities and ignore the challenges presented. Today, we’ve looked at three major challenges of doing business in Dubai not to deter you, but to prepare you for the realities of what might await you.
With some forethought and a bit of preparedness, you’ll be well-prepared to capitalise on all of the advantages that Dubai has to offer without any of the headaches.
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