Whether your company is already operating in some other country or you are simply looking to start an entirely new business in Dubai, both would be considered ‘start-ups’ within the new market. Dubai is quickly becoming a global hub for trade, but before rushing in to do business there, it helps to know a few things that could make or break your endeavour. The first thing any good business man or woman needs to assess is cost. Here are a few sound bits of cost management advice for start-ups in Dubai.
Government Mandated Financial Requirements
Upon registering a business in Dubai, the Ministry of Commerce requires a monetary guarantee against liabilities. This amount varies, but the norm is between £6,500 and £33,500 and is meant to prove to the government that you have a sizeable enough investment that can be used as an added measure of protection against any losses you may be held accountable for. This is one financial requirement you can’t work around, which is why it is listed first on this list. This figure must be factored into your calculation, so if you are trying to keep costs low, this is one static cost that you need to be on top of.
Working with a Local Sponsor
Here is where it may get a bit tricky. Part of government regulations requires you to be sponsored by a local. If you aren’t prudent in your choice of sponsors, it could get quite costly. Make sure to research the person who will be sponsoring you. This is especially the case if you’ve found your sponsor online. You may have found a less than reputable person of debatable character. In the end, it could cost you a small fortune if he/she absconds with any of your investment or guides you inaccurately.
Keep Operating Costs Low
Another thing you may want to consider are the ways to keep operating costs to a bare minimum. One of the easiest ways to do this is with serviced office space in Dubai. Usually you can find office spaces that come with shared internet, janitorial services, security and some even have a reception area in a central lobby to direct your clients to your office space. Rather than paying individually for all those services, shared costs amongst other businesses keeps your cost much lower. Sometimes these costs are included in the base rental agreement and sometimes they may be ‘add-ons,’ but they will certainly save you money in either case.
A Final Word of Caution
One final bit of advice is to take ample time to research the area and customs. There is a huge divergence between cultures in the UK or the US, for instance, and those in the United Arab Emirates. Not only is it essential to build up business contacts, but in doing so, you don’t want to offend any potential clients with behaviours that are perfectly normal back home but frowned upon by the locals. How does this factor into cost? If you don’t have a good working relationship with the professionals you will be dealing with, you may soon find that you have no business at all or are asked to pay exorbitant costs for their services.
Starting a business in Dubai isn’t as daunting as it may sound because the government actually welcomes new industry. They have even made it easy to do many of your legal transactions online with e-services. It is up to you to manage costs and these tips should point you in the right direction.