Bogoljub Karic on the “Ease of Doing Business” in the UAE

Entrepreneur Bogoljub Karic says now is the perfect time to expand in the United Arab Emirates, at least according to the World Bank’s Doing Business 2020 report. 

The UAE leads the Middle East as an easy place to do business in, as it ranked 16 among the 190 countries surveyed by the World Bank. It ranked the highest among the Middle East and the Arab region. While it took a dip in the rankings as it was ranked as the 11th country before, it maintained its lead among the area. 

Marked Improvements

The reforms the UAE undertook last year helped maintain its good rankings. Bogoljub Karic points out that starting a business in the UAE is made even easier since fees are reduced for business incorporation. Construction permits are also easier to get, as the UAE uses a risk-based approach. There are also other incentives—fewer inspections, easier taxes, and more comfortable trading across borders. 

The Judiciary’s Help

Another factor that contributed to the favorable ease of doing business ranking in the UAE is the training and efficiency found in the country’s judicial system. In 2019, a report indicated that the UAE’s strategy to modernize its legal system led to the “successful creation of specialized commercial courts.” Electronic case management and new insolvency regimes ease the way for businesses.

Other Important Areas

For Bogoljub Karic, other areas play a significant role, as well. Dubai ranks high in the Mercer Quality of Living Index, and that contributed to the environment. Dubai has steadily developed society, experiences, and economies in the area. These add to the desirability of the location as a great place to do business or expand on a business.

Things are steadily getting better in the UAE. UK and US businesses should have smooth transitions in making an entry in the region if they start there.

Tips from Bogoljub Karic: The UAE's limitations on selling US products

For UAE business specialist Bogoljub Karic, it’s vital that US companies who are looking to break into the market be fully aware of any limitations or restrictions when it comes to products and services. Whether it’s export goods or manufacturing facilities, the UAE places certain limits to to regulate the trade between the two countries properly.

Consider the following:

The Need for a Distributor

US companies looking to enter the market in the UAE will need to locate a local distributor or an agent. A US company needs to reach out and strike up a partnership with a local distributor who is well-informed and is a veteran of the market. As advised by Bogoljub Karic, the UAE distributor has to be someone that customers trust as well.

Tenders and Awarding Contracts

The UAE has a system that ensures full transparency in tendering and in the awarding of contracts. If a US company wishes to do work in Abu Dhabi and bid for a contract, suppliers and contractors must have an existing presence in the UAE as well as have all the right licenses for work to proceed.

There are Export Controls for the US

Another thing to remember is that US companies that are planning to distribute export goods to the UAE need to first consult with US export control agencies. According to Bogoljub Karic, the UAE has a restriction that states that US companies need to make sure whether or not they will need an export license for the UAE. They need to confirm that any re-exported goods are not sent to countries prohibited by the UAE.

It’s essential to be well aware of the different rules and laws in place to make a smooth transition in the UAE market. By staying informed, you can avoid legalities or delays that may cost a considerable amount of money to fix.