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Abu Dhabi
Form of government:
Federal Monarchy
83 600 км2
4 million
Dirham UAE(AED)

Features of doing business in the United Arab Emirates

The eastern fairy tale attracts travelers and businessmen since time immemorial. The burning sun, golden sands, azure waves and the sweetness of the Turkish delight make foreigners come to the United Arab Emirates since time immemorial. And if you cast aside the tales of a thousand and one nights, it is logical to say that the UAE attract not only by the eastern exotics, but also by profitable factors for business, which we will discuss below.

Positive factors for the enterprise

Let’s consider why it is profitable to start a business in this hot country. So:

  • As is known, most of the production facilities are located in China. Cash flows come from Japan and Singapore, while the UAE plays the role of some kind of oil core of this cycle.
  • The UAE can easily be called a brilliantly developed country. Abu Dhabi and Dubai are among the most developed cities in terms of infrastructure.
  • The richest people on the planet live in the Emirates. In this case, it’s not just about the cream of the society - the sheikhs and politicians, but also about the average inhabitants whose living standards can be called higher and more comfortable than European ones.
  • The success of the country in 80% is hidden in oil deposits. However, no oil treasure is forever and it is important to plan the business correctly and be able to negotiate, in which the Arab people have greatly succeeded.
  • In the UAE, investments are constantly coming from China.
  • From an administrative point of view, the Emirate’s system is very multifunctional and flexible. It has combined a federation and monarchy in itself. The territory is divided into emirates for ease of management, which resemble districts or states. Each emirate has the right to dispose of its own resources at its discretion, which gives complete freedom to the business.
  • There are strict laws in the country, due to which the Emirates is often called the safest country 24 hours a day. Robberies, attacks and racket are more a rarity than a regularity.
  • The UAE is working on an interesting, different from our system, namely: from Sunday to Thursday. Friday and Saturday are rest days. Consider these factors when organizing your business, cafe or atelier.

Features of laws in the UAE

If you have business in the UAE, you should carefully consider the legislative framework or consult a specialist. Tax system is not complicated in the country, but rather insidious. The fact is that there are no corporate taxes in the UAE, everything is regulated by legislative acts, while the content of these acts differs in different emirates. There is no VAT in the state, however there is a tax on rent of a premise - percent from a payment for rent.

You can register as a legal entity online in a few clicks if you have prepared documents in advance.

Drunkenness is suppressed in the Emirates in every possible way, so if your business is connected with the sale of alcoholic beverages, it is not the most profitable state for such specialization.

The UAE is a clean country. Keep an eye that there should be an urn near your shop, cafe or salon, there must be no rubbish. According to the Emirate laws, you can receive an administrative fine for non-observance of cleanliness, a piece of paper past the urn.

Business dress code in the UAE

Small and medium business is influenced by the culture of Islam, which must be taken into account when doing business. There is a kind of business cultural etiquette that you must support when dealing with local businessmen. For example, it is impolite, when a non-Muslim appears in Muslim traditional clothes or imposes his traditions to a Muslim.

Dress code of a businessman from the UAE is close to the European one in many ways. A businessman can wear a light suit in the office. He can wear trousers and an ironed short-sleeved shirt and a thin jacket at the meeting.

Arab businesswomen can appear in conservative monochrome dresses below the knees or light trouser suits. Mandatory moment: the sleeves of the dress or blouse should cover the upper part of the arm and shoulders. Decollete and cutouts on the back are taboo.

Despite the progressive views and high rates of economic development, the Emirates are not very modern in issues of emancipation, a woman is still considered as a homemaker, and not a business oriented person.

Business style of communication in the Emirates

If you registered a business in the United Arab Emirates, in order to develop contacts, prepare business cards printed in English and Arabic.

In case of negotiations, arrange a meeting personally by phone, without using an assistant. At the same time, you can duplicate the agreement in an e-mail, but the correspondence in the Emirates is not equated to documentary confirmation.

The Arabs tend to be punctual, it is believed that it is not worth spending time on business with the person who does not value his own. If you made an appointment, come to it 10-15 minutes earlier before the appointed time.

Note: when greeting, a man can hug an opponent and kiss on both cheeks. If your interlocutor is a woman, you have the right to shake her hand only if she reached out.

According to old traditions, when you shake hands, offer to help or take an item, the right hand is stretched out. The left one is considered “dirty”. The right hand symbolizes the openness to negotiations and good intentions of the business partner.

Muslims are wonderful speakers, they are taught to speak from the moment they cross the school threshold. Therefore, the better and more eloquent you express your thoughts, the more success you will achieve in business. Before the meeting, practice in front of the mirror to cover the basic points of your proposal. Inhale, take logical pauses and clearly pronounce the endings.

Simple business in the UAE

If you came to conquer the country, get ready for much investment. Since the level of the economy of Ukraine and the UAE is very different, opening even a small coffee shop in the Emirates will be a big challenge for the purse. Start with simple types of business: shops, green cafes, kiosks with sweets, tiny coffee shops and small salons.

Open a small grocery store. In order to do this, register an enterprise, rent a small area and, most importantly, find a good supplier of products.

Take a closer look at the green cafes. Healthy food is getting more popular, opening a cafe with large portions of salads from different types of greens under a delicious sauce is an excellent option for your business. It is optimal to open a cafe near beaches and entertainment zones.

As an alternative, open a coffee shop with small tables, air conditioning, cups of coffee and oriental sweets. Not only local residents, but also tourists will like such a format as there are numerous in Abu Dhabi and other cities .

If the funds permit, you can open a family restaurant, divided into 4 zones: storage and kitchen facilities, tables and a children’s playground. The only thing: be careful about selling alcohol. Before the opening, receive all the permits from the authorities.

If your hobby is to make the world more beautiful, a beauty salon or a hairdresser is a great option. In the UAE, you can rent the most modern equipment and turn a small salon for 10 places into a whole complex for 50-100 people over the years.

Have a hot and sunny business under the palm trees of the Emirates!

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