Dubai is a well known regional and global hub for trade and entrepreneurship. In 2023, the city had 411,802 active business licenses, 30 percent higher than in 2022. The businesses that call the city home are vital in helping expand its economy. With a robust economy, Dubai offers plenty of opportunities for aspiring entrepreneurs to do business in the emirate. Thinking about establishing a business through partnership in Dubai? Keep reading.
Dubai as a business hub
Dubai is a dynamic city that boasts exceptional infrastructure and a business-friendly climate. Recently, the government has introduced the Dubai International Growth Initiative in support of small- and medium-sized enterprises (SMEs) based in the city.
“Dubai has launched several initiatives aimed at empowering businesses under the guidance of His Highness Sheikh Mohammed bin Rashid Al Maktoum. Among these, the Dubai International Growth Initiative, which allocates AED500 million to support SMEs, serves as a strategic commitment to the future development of Dubai’s economy,” remarked His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance of the United Arab Emirates (UAE).
What is a business partnership in Dubai?
A business partnership in Dubai refers to a cooperative agreement between two or more parties — whether they are individuals or organizations — to engage in commercial operations.
In the city, there are different types of business partnerships. Local sponsorships are for foreign business people who want to establish a presence in mainland Dubai. It involves forging a partnership with a UAE national. The Emirati may hold a majority interest in the business.
While foreign entrepreneurs can fully own companies in the so-called free zones, business partnerships are also involved. For instance, foreigners and UAE nationals can partner and work on certain projects and services.
Joint ventures are a bigger type of partnership common in sectors like energy, infrastructure and energy, which often introduce large-scale projects. In a joint venture, two or more entities come together and pool resources for mutual benefit.
Meanwhile, professional partnerships are tailored for professionals, such as lawyers and consultants. These partnerships see these people combine their expertise in a collective offering.
How to establish a business partnership in Dubai
If you want to harness Dubai’s prowess as a trade and entrepreneurship hub, here’s how to establish a business partnership in the city.
Step 1: Know your goals and needs
The business landscape in Dubai is vast and competitive. Before looking and teaming up with any partner, the first key step is to identify your objectives. Do you need an entity with local market expertise? Are you looking for someone who can bring in financial investment? What are the goals of the partnership you’re eyeing to form?
Read: How to get a gold trading license in Dubai
Step 2: Network, network, network
There are several ways to expand your network in Dubai. Consider attending trade shows, business events and exhibitions. These are avenues to connect with potential partners and gain insights into the local market. Additionally, these platforms allow you to introduce your products and services. Showcasing what you offer will help you attract a suitable partner.
Step 3: Conduct due diligence
Have you already identified potential partners? The next key step is to conduct due diligence. Check their reputation, track record and financial health. Also, research if they are (or have been) involved in legal disputes. You can also tap a legal counsel and a third-party business expert to help you deal with these important matters. Specifically, a legal counsel can guide you on regulatory concerns and help you craft a solid partnership agreement.
Step 4: Let your relationship grow
Cultivating a strong personal relationship with your potential partner is also important. Beyond the usual business meetings, consider sharing meals or joining industry events together. These gatherings will allow you to gauge your rapport with them, learn more about their personal values and help you establish trust, which is a key ingredient for any successful business partnership in Dubai (and elsewhere).
Final thoughts
If you’re looking for a gateway to the city’s thriving economy, forging a business partnership in Dubai is a strategic move. Business partnerships unlock several networking and marketing opportunities as well as foster accelerated growth.
When establishing a business partnership in the city, make sure to establish clear goals, define roles and decision-making pprocessesin addition to creating robust financial and legal frameworks from the outset.
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