How to Prepare for Scaling into New Markets in 2024?
Expanding into new global markets is an exciting move for any company, but also requires thoughtful preparation and strategic planning. As we move into 2024, many firms will be setting their sights on growth opportunities in the United Arab Emirates (UAE)—but successfully entering this complex market takes time and understanding. In this post, we’ll explore key ways companies should prepare if they hope to scale their operations into the UAE next year.
Conduct Thorough Market Research
Before determining if a move into the UAE is financially viable, invest significant time into studying the target market. Gather quantitative data around market size, growth projections, competitor analysis, and potential customer demographics. Speak with industry contacts or hire an expert consultant to better understand nuanced cultural preferences, buying behaviors, advertising effectiveness, legal considerations, etc. Moving quickly without fully educating oneself on the UAE landscape rarely ends well. Be sure to research how genres within one’s industry—be it fintech, real estate, retail, etc.— operate locally.
Find the Right Local Partners
Even with immense preparation, companies should not plan to penetrate this complex market alone. Seeking strategic partnerships with businesses that originate in the Emirates is hugely important when entering the UAE. Local players better understand finicky distribution channels, cultural nuances, localized marketing, reliable vendors, necessary governmental relationships, HR policies and more. Whether it be a supplier, sales team, marketing agency or joint venture partner, connect with UAE-based collaborators early in the planning process.
Get Required Licensing & Approvals
The UAE maintains exacting standards around business establishment and operational compliance. Significant time should be allotted to obtain proper licensing, paperwork and approvals before offering one’s products or services there. Working closely with a reputable local legal consultant or liaison service can smooth this demanding process. From trade licenses to municipal approvals to visa quota
considerations and more, failing to cross one’s Ts in advance can completely derail an UAE launch.
Review Capital Requirements
Expanding into any new geography necessitates access to ample capital. Have realistic cash flow projections, credit resources and a financial cushion ready to carry operations through unpredictable early days. However, the UAE poses particularly demanding financial requirements—from licensing fees to local partnership terms to office space leases in premium Dubai or Abu Dhabi buildings. Include sizable legal and consultant retainers too. Ensure one has the scale, loans, investors and financial runway secured well beforehand.
Craft Customized Brand Messaging
The UAE houses consumers from virtually every corner of the globe alongside native Emiratis, making it an exceptionally diverse market. Thus, global brands should not rely on broad international messaging there. Invest time into fine-tuning both Arabic and English advertising, social content and positioning that resonates in this unique melting pot. Recall that the UAE also adheres to more conservative standards than many nations. Adapt tone, concepts and images accordingly.
Allow for Localization Capacity
Product and service offerings working abroad sometimes need regional adaptation too. Tech
platforms may need Arabic language interfaces. Inventory may require formulation tweaks to suit local climate conditions. Service-based companies might need to accommodate Islamic business hours or dining preferences. Enable teams to make necessary iterations, rather than stubbornly forcing universal standardization.
Patience Is Key
Finally, prepare executives and stakeholders for an extended ramp-up period upon regional expansion. Recouping an initial UAE launch investment can easily take 2-3 years. Tapping this strategic market is a long-term play, not a quick win. Adjust expectations, budgets and outlooks accordingly. With proper diligence and commitment, planting roots in the UAE can reap considerable returns over time.
