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Challenges of Doing Business in Dubai

by alexis rodgers - 10 May 2022, Tuesday 156 Views Like (0)
Challenges of Doing Business in Dubai

When you’ve lived and worked in Dubai for as long as I’ve got, you'd be forgiven for becoming almost desensitized to the rapid acceleration of town. Barely every week goes by without word of another new development, or murmurings of the following big startup that’s near to break through. There are multiple challenges that you will face if you are looking to doing business in Dubai.

Surpassing expectations

Despite cautious whispers about slowing growth that appear to crop up every few years, Dubai continues to surpass expectations and take its incredible evolution to the following level. There’s little question that this is often still noticeably a city that's booming. But while the upward trajectory of Dubai could seem unstoppable, that’s to not say doing business during this a part of the planet is without its challenges. rather like any major business powerhouse, there are certain pitfalls to be avoided and obstacles to beat. However, providing you move into business along with your eyes open and tuned in to the hurdles that will lie ahead, there’s no reason why the driven and dedicated entrepreneur cannot see success during this amazing city.

So, let’s take a glance at five of these common challenges to stay in mind.

Major Challenges

Obstacles and Pitfalls

In his speech at the UAE Economic Outlook Event 2017, Sheikh Ahmed Bin Saeed Al Maktoum, chairman of the Economic Development Committee in Dubai made clear that he expected town to exceed last year’s economic process of two.7%, up to 3.1% in 2017. But while the upward trajectory of Dubai could appear unstoppable, that’s to not say doing business during this a part of the globe is without its challenges. Similar to any major business powerhouse, there are certain pitfalls to be avoided and obstacles to beat. However, providing you get into business together with your eyes open and responsive to the hurdles which will lie ahead, there’s no reason why the driven and dedicated entrepreneur cannot see success during this amazing city.

Retain your sanity

Keeping the mania under control Dubai is that the quite place that you just can easily get swept up in. There’s a palpable excitement and almost manic work ethic that vibes through town and for brand new arrivals it can take a bit time to realize some perspective. The key to making sure you retain your sanity while adjusting to Dubai life is to search out that work/life balance as quickly as you can: set reasonable hours and take the time to modify off. If you don’t, you'll end up burning out before you recognize it.

Burnout is far quite tiredness or maybe exhaustion. I’ve got seen it again and again and it can have a devastating effect. Essentially burnout could be a state of chronic stress that impairs your cognitive function, blurs your thought process, and in extreme cases can result in total detachment from the planet around you. And if that wasn’t bad enough, do you have to be one in every of the unfortunate ones that reaches burnout, it'll undo all the labor that got you there. within the Handbook on Burnout and Sleep Deprivation edited by Travis Winston, one in every of the various studies cited demonstrates that the consequences of burnout on the brain not only cause poorer performance levels, but in some cases, the issues can last several years.

Managing the money

When you are in Dubai, managing your money extends way beyond your business. this can be the town of cash, after all. And why wouldn’t it be? Dubai is an out of this world place to own fun and set free and there are in fact many excellent ways to spend your money: Fine dining, fast cars, watches, art, fashion, and lots of other things that you simply actually need but, well, don’t really want.

But keep this in mind: the Association of Chartered Certified Accountants found in their study that 82% of startups fail as a result of poor cashflow management. So, unless you wish it would slow here to be incredibly short, it pays –literally– to induce your spending in restraint fast.

Creating a proper workflow

There are many people who say that whether you are an organized person or might not be. While I agree that perhaps a number of us find it easier than others, I feel that like every skill, organization are some things which will be learned. except for some reason –most likely due to how quickly things move out here– many Dubai-based businesses struggle to remain organized.

It is not uncommon to search out relatively large organizations with workflow management systems that aren’t suited purpose– if they even have a proper system in situ in any respect. On the flipside, you frequently find businesses that have information split across several systems where they need patch-worked CRMs, accountancy software, project management tools and Excel spreadsheets together over time because the business has grown. However, you select to try and do it, understand that organization is essential to any business’s success. As legendary American businessman Harold Geneen once declared: “The five essential entrepreneurial skills for success: Concentration, discrimination, organization, innovation and communication.”

People management

After all, this one isn't unique to Dubai. How you manage your people will have a large relating your success anywhere within the world. However, there are some factors that are unique to town. Perhaps the foremost notable is that the level of diversity present in most workforces across the emirate. you may be managing people from many alternative countries and backgrounds, so one among the key challenges for brand spanking new arrivals is to extend their levels of cultural sensitivity and awareness.


For most, this is often a straightforward adjustment to make– and it comes with some big benefits, and not just within the sense of broadening your horizons. A study in 2015 by McKinsey that checked out quite 350 companies found that those within the top 25% for ethnic and racial diversity in management positions were 35% more likely to own above average financial returns. Perhaps one in every of the explanations Dubai businesses tend to perform so well? Cultural dynamics aside, your job as manager are going to be first and foremost to rent the correct people. But that's abundantly just the primary step. Once they're on board, you then must take the time to urge to understand them on both a private and business level. Engage with them, learn their strengths and most significantly what makes them tick.

Conclusion

The meta-analysis of 1.4 million employees found that organizations with high engagement report 22% higher productivity together with lower absenteeism and staff turnover. And the beauty is, out here, investing in people never appears like a chore. On the entire, the Dubai workforce is devoted, passionate, bright, and hardworking. only 1 of the numerous reasons why, for me, there’s no place better place within the world to try to business.