UAE Global Expansion Playbook

Introduction

The United Arab Emirates (UAE) is a rapidly growing hub for companies looking to expand globally. With its strategic location, business-friendly policies, and robust infrastructure, the UAE is an attractive destination for companies looking to establish a foothold in the Middle East and North Africa (MENA) region. To ensure successful execution and growth, companies looking to expand to the UAE should establish a comprehensive global expansion playbook.

Research & Budget

The initial phase of any global expansion should involve researching and assessing the reasons for choosing a particular country over others. This can be accomplished by analyzing macroeconomic factors, the target customer base, regulatory requirements, the cost of expansion, and the go-to-market strategy. Once the reason has been established, companies should turn their attention to technical steps, such as the incorporation requirements, tax regimes, and government agencies. For example, in the UAE, foreign companies must establish a local presence through a registered entity, corporate tax is minimal, and there are various free zones that offer tax incentives and exemptions. Once the initial research has been completed, the finance team will create a budget, which includes revenue targets, human resource costs, professional vendor fees, office space, and marketing expenses.

Legal Operations

The UAE has a well-established business ecosystem with a diverse talent pool, making it an attractive destination for companies. However, identifying a trusted local partner is crucial due to the volume of options presented. Companies must also navigate government bureaucracy and the corporate establishment process before a local team can be formed and sales can begin. To mitigate these challenges, companies can opt to set up a local entity or leverage an International Employer of Record (EOR) solution.

Go To Market

When creating a go-to-market global expansion strategy, companies must determine whether they will use a single country, regional, or global approach from day one. Companies that expand to the UAE often treat it as a single country strategy due to the inherent size and complexity of succeeding in the MENA region. However, there are many potential high-growth markets in the region that companies can leverage. Startups, scale-ups, and even enterprise companies can benefit from leveraging lean principles when planning a go-to-market strategy. By launching a minimum viable product (MVP), often in the form of the product/service in the original home market, the local team can begin to gain insights from the reception of local customers.

Hire A Team

The UAE has a strong talent pool with diverse backgrounds and experiences, making it an ideal location to ramp up sales and operations. Hiring a team with as many local nationals as feasible is recommended to navigate local laws and regulations, cultural nuances, and to gain insights into local market preferences. During the budget phase, companies planning their UAE global expansion playbook should map out the first ten hires. Common mistakes that globally expanding businesses make include insufficient planning for employer social contribution levels, termination protections, intellectual property protection, and common vs. mandatory benefit programs. These can be mitigated through research and working with local partners.

Build, Measure, Learn

Once a team has been hired, and the go-to-market strategy is established, operators should begin the lean cycle of Build, Measure, Learn. A common mistake company leaders make when expanding globally is not treating the local operation as a startup within the company. This requires re-establishing product-market fit through MVP launches, data gathering, and iterations. Companies that attempt to use their current product or service in the UAE without considering the local customer expectations will likely struggle to succeed. The problems faced by local UAE customers may differ from more advanced economies, so ground research from first principles is a highly recommended approach to learning and establishing which problem you are solving for. By building a global expansion playbook that is tailored to the UAE, companies can ensure successful commercial growth.