What is it really like to run a business in the UAE in comparison to UK
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What is it really like to run a business in the UAE in comparison to UK
I was spared on to make this video & blog for a number of reasons but mainly being the discrepancy of between the reality of what is being posted online in comparison to what the reality is really like when it comes to running a business in the UAE & trust me I know, I am someone who has amassed millions of views and been featured in major publications so I’m in the perfect position to tell you the truth and I can tell you it’s bloody hard.
You should never expect running a business to be easy, just because it’s easy to incorporate does not mean it’s going to be an easy place to conduct business.
Changing market & regulations
I was spared on to make this video & blog for a number of reasons but mainly being the discrepancy of between the reality of what is being posted online in comparison to what the reality is really like when it comes to running a business in the UAE & trust me I know, I am someone who has amassed millions of views and been featured in major publications so I’m in the perfect position to tell you the truth and I can tell you it’s bloody hard.
You should never expect running a business to be easy, just because it’s easy to incorporate does not mean it’s going to be an easy place to conduct business.
Changing market & regulations
The market has changed, it’s no longer a case of 100% tax free business & plush salaries and fat benefit packages for expats emigrating.
It is now a market that is incredibly competitive with higher paying wages and taxes for businesses.
I do know British businessmen who have run their companies in the UAE for many years, who are now choosing to close them due to increasing regulations and tax compliance. I think for many it’s starting to feel like a similar set up to HMRC, yes the is a tax threshold at 375,000aed, but it’s just the tax-related paperwork and bureaucracy you need to consider.
Just because the market is changing and regulations are increasing doesn’t mean to say you shouldn’t set up, because it is still an amazing place to run a business, hence why I do still choose to run a business here for reasons we will get into later on.
Easy company formation and residency
It is now a market that is incredibly competitive with higher paying wages and taxes for businesses.
I do know British businessmen who have run their companies in the UAE for many years, who are now choosing to close them due to increasing regulations and tax compliance. I think for many it’s starting to feel like a similar set up to HMRC, yes the is a tax threshold at 375,000aed, but it’s just the tax-related paperwork and bureaucracy you need to consider.
Just because the market is changing and regulations are increasing doesn’t mean to say you shouldn’t set up, because it is still an amazing place to run a business, hence why I do still choose to run a business here for reasons we will get into later on.
Easy company formation and residency
If you are coming from the western hemisphere, then it truly is an amazing process to set up your company and get your residnecny.
You simply visit a free zone or mainland company registration process ( Do not use a third party ) and you start the process with your chosen company. I can highly recommend RAKEZ. They have been truly brillant and it was one of the reasons why I chose to relocate to RAK from Dubai.
Business in the UAE is not as easy as the internet makes out
I absolutely hate these people who delibarly and make business out to be easy in the UAE because if they are living here, they very well know that business is hard here as it is in the rest of the world.
The reason why they do this is that they are making money out of your company formation and possible relocation / emigration and they don’t care if the move is right for you and your family, ultimilty they will sell you a pack of lies all so they can make a little bit of kickback referral commission. The move isisnt right for everyone and you need the right guide on your shoulder to properly inform you of what living and running a business in the UAE actually entails.
A great way to test if this person is being truthful is to see if they freely give the information that the is an annual company renewal cost or if they deliberately choose to withhold this information when discussing company formation.
What makes business in the UAE hard & how can I combat this?
It’s unbelievably competitive and you need to have a real niche for this to work. The is always someone who has lesser living expenses than you and they will always undercut you if they can and for this reason, I have actually found in many cases expats are having to charge less for the work they do in comparison to what they would charge in the UK.
There is ultimately no minimum wage in the UAE and this can effectively cause a race to the bottom.
When I first set up my business in the UAE I was offering standardized photography and videography packages for businesses and I was blown away at how little companies were expecting to pay, for the companies it was not so much about the quality; it was more how cheap can I get it and they can get it cheap! Okay the quality is much less but for most companies, they just didn’t seem to care about the quality compromise, they just wanted it cheap!
I quickly pivoted my bussiness into where I found I could charge more and that was with my personal brand that has now developed into Mr Moss. It’s here where I could charge for influencer videos for businesses.
You need to find a real reason to stand out and by having the best quailty it is simply not good enough.
You need to have a real niche and stand out bussiness to survive and then you need to hustle your business hard to thrive.
You simply visit a free zone or mainland company registration process ( Do not use a third party ) and you start the process with your chosen company. I can highly recommend RAKEZ. They have been truly brillant and it was one of the reasons why I chose to relocate to RAK from Dubai.
Business in the UAE is not as easy as the internet makes out
I absolutely hate these people who delibarly and make business out to be easy in the UAE because if they are living here, they very well know that business is hard here as it is in the rest of the world.
The reason why they do this is that they are making money out of your company formation and possible relocation / emigration and they don’t care if the move is right for you and your family, ultimilty they will sell you a pack of lies all so they can make a little bit of kickback referral commission. The move isisnt right for everyone and you need the right guide on your shoulder to properly inform you of what living and running a business in the UAE actually entails.
A great way to test if this person is being truthful is to see if they freely give the information that the is an annual company renewal cost or if they deliberately choose to withhold this information when discussing company formation.
What makes business in the UAE hard & how can I combat this?
It’s unbelievably competitive and you need to have a real niche for this to work. The is always someone who has lesser living expenses than you and they will always undercut you if they can and for this reason, I have actually found in many cases expats are having to charge less for the work they do in comparison to what they would charge in the UK.
There is ultimately no minimum wage in the UAE and this can effectively cause a race to the bottom.
When I first set up my business in the UAE I was offering standardized photography and videography packages for businesses and I was blown away at how little companies were expecting to pay, for the companies it was not so much about the quality; it was more how cheap can I get it and they can get it cheap! Okay the quality is much less but for most companies, they just didn’t seem to care about the quality compromise, they just wanted it cheap!
I quickly pivoted my bussiness into where I found I could charge more and that was with my personal brand that has now developed into Mr Moss. It’s here where I could charge for influencer videos for businesses.
You need to find a real reason to stand out and by having the best quailty it is simply not good enough.
You need to have a real niche and stand out bussiness to survive and then you need to hustle your business hard to thrive.
Ultimaley you can find success but you have to find that niche and like anywhere in the world, you need to work your ass off!
What are the benefits of doing business in the UAE?
There are lots of benefits to running a business in the UAE. Waking upto dry weather everyday in the winter is one of them and that’s a big big bonus knowing what the weather is going to do everyday. The steady weather leads to less canceled meetings. It’s amazing how much the rain can affect a business.
The UAE does act as a global trade hub, it always has and it always will, thanks to it’s geo location on the world map. Because of this you have access to pretty much all materials in every market at a great price, meaning you can set up shop here as a master global distrobutor and exsport to markets around the world. The location of the UAE gives businessmen plenty of advantages!
What I mention next is somthing that’s not to be taken advantage of and to be treated with moral respect.
The are lots of options for manufacturing in the UAE because the is no minimum wage, and that combined with the ready supply of matrails creates the perfect nation for manufacturing. This is something that many people overlook in the UAE but it is a real opportunity.
You do how to inspect these factories personally or send someone out on your behalf who can give you an accurate report. In business, we should always consider our moral and ethical practices and just because you can dose not mean you should. There is a balance at play in business when it comes to morals and ethics and it’s not worth compromising your integrity for a little more profit. A great example of this is when overseas property investors ask me for a recommended I refer them to a developer I am close with because I have been on site and seen the staff are well look after.
I am sure I will find many more benefits as the years go on.
The summer is hot, very HOT!
This is a seasonal market. Depending on your business, if you can leave in the summer, you should. In the summer, things really do slow down a lot and it’s simply because you can not walk 200m outside without being drenched in humidity by the end of the short walk. Many entrepreneurs will leave in the summer. The ones who don’t are typically the ones who can not.
What does the future hold?
It’s hard to say. When I was working directly in Dubai, real estate clients used to ask me what could change the market and impact my investment. I used to tell them regulation change, regulation change is quick in a kingdom, it does not go through multiple hearings as it does in a democracy, it can just happen in a few weeks & this definitely has it’s advantages but it could also have a disadvantage because one wrong regulation change could have a huge dominio effect onto individual markets or the entire market.
I do think though, the UAE has a number of years of experience under it’s belt now and I am sure that they are aware to how easily markets can be affected by new regulations and they have always tried to keep this market as open and friendly as possible to entrupunes and I am sure this will continue.
I could continue to write and write but I must get back to work and selling. I personally do feel like I am forever battling to keep up with my own life and business-related costs but I keep the hope and keep up the hard work.
To sum this is up, this is not a walk in the park by any means and you should be prepared to see this out no matter the cost and that cost could be a high price to pay, but you a an entrepreneur, hope, pray, and work hard to reach the good times that I do believe are ahead!
God bless, Benjamin Mossman.