Well, the very basic question is, when you’ve survived and worked in Dubai for as extensive as I have, you would be excused for becoming virtually impervious to the quick quickening of the city. Hardly a week goes by deprived of the word of additional new development, or murmurings of the next big origination that’s about to interruption through.

Contempt watchful undertones about retardation growth that seem to pop up every few years, business Dubai endures to exceed outlooks and take its implausible fruition to the next level. There’s no distrust that this is still very much a successful city.

Dubai is counted as the business hub of the Central East. It is the eventual place to do business with such a flourishing economy and the diverse population to face the challenges of doing business in UAE. There are innumerable advantages of starting a business in Dubai, especially for foreigners but the scale of disadvantages of doing business in Dubai is also considered as the one major issue for beginners or sometimes for those who have their fulfilled trade and business. The economy is constantly growing, the cost of labor is significantly lower, there are almost zero taxes and the free zones in Dubai make it the perfect business haven for foreign investors.

Disadvantages Of Doing Business In Dubai

Now, here is a look at the limited of the most common contests that are prospective to be faced by a business tycoon or firm in the UAE and Dubai.

1. UAE Company Possession

If an individual wants to start a business in Dubai it is an aground or LLC (Limited Liability Company) in the UAE, they do compulsorily involve a local promoter. This requires a specific mode to have a challenge of doing business in UAE on a national scale as a companion who shall own 51% of the possession. While there are few manufacturers and traders who approve of this standard it can be deadly for others to develop trust and dependability.

2. Home-Grown Sponsor

This is a big challenge of doing business in Dubai is to find a home-grown sponsor who is dependable as for most of the authorized business, having a resident sponsor is a must. Thus, the outcome of a local partner in the UAE who would own the major palisade in the company and give you the freedom to pact with business on your terms could be a frightening task.

3. Taxation And Project Subsidy

Let’s take a short overview in January 2018 the UAE familiarized 5% value-added tax, compulsory throughout the Gulf Cooperation Council (GCC). This tax is functional to almost all belongings and facilities excluding basic food items, institutions, and healthcare. Recordkeeping for VAT and going further through the development can demonstrate to be inspiring. In case your business is in its inauguration phase, it can be a difficult task to attain funds from the UAE bank. Because the main necessity for any request for business credits is the delivery of at least 3 years of audited balances with positive figures and growth indicators of doing business in Dubai.

4. Cultural And Traditional Tenants

From a cultural and traditional perspective, the Islamic culture needs to speak before you set up a business in Dubai or the UAE. It plays a vital role in people’s normal lives, in the office and outside. Islamic taxes should be pragmatic and the belongings of the Islamic religion on business connections must be esteemed when doing a commercial in the UAE.

5. Statements Style

An individual setting up a business in Dubai and in the UAE must be aware of the challenges of doing business in Dubai some of the particulars in the statement they might be predictable to know. Men and women are also connected with different tones. The level of conventionalism in the UAE may also be hard to acclimate to some of the refugees.

6. Trade And Business Marketplace

Once you start a company, you have to hire staff to run a business and the UAE has convinced rules and measures for the same. This comprises the responsibility of a company to deliver passes to its personnel an operative is not acceptable to work in the company until they get their permit. Once you get the basic thoughts of the guidelines shadowed in the UAE, there might not be any astonishment.

7. Handling Profits

Even though the UAE can deliver a lot of occasions for broadening your business in Dubai, it can be correspondingly risky. It was described by the Association of Chartered Certified Accountants that 82% of the inaugurations fail as a result of poor cash stream organization. Therefore, the cost of business format and your original money necessities need to be accomplished and then act as functional.

8. Business Particulars

One has to have a piece of wide-ranging information associated with business setup in Dubai or the UAE. Since there are dissimilar districts to set up a business, each one has its convinced specifics concerning business conducts and existence. Business in Dubai, incontestably, has its particulars, and you need to be conscious of them to effortlessly keep with your company setup.


Managing people will have a huge manner in one’s success in any place in the world. Perhaps the most prominent feature is the level of assortment contemporary in most personnel across the country. As you will be occupied with people who come from different assortments, people management can take some erudition to be carried out stylishly.

Finding a home-grown sponsor, handling your finances, and receiving a clear idea about the numerous rules and guidelines can be frightening. And many a time, business requirements that you come across can be ambiguous and unfinished. 

8th Sep 2020 Sadia Naseer

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