Commercial experts in the UAE tend to expedite the closing of business transactions. Certainly, not seeking the guidance of commercial experts when doing business in a foreign market like the UAE can lead to various challenges and even horror stories. Here are a few examples:
- Cultural Misunderstandings: Ignoring cultural nuances and business etiquette in the UAE can strain relationships with local partners or customers. For example, not understanding the importance of personal relationships (Wasta) in business dealings might lead to missed opportunities or damaged partnerships. We have over the years observed, for example, that clients are unable to read the region’s inability to say ‘no’ and often waste significant resources in commercial businesses and dealings that for a UAE commercial expert would have been long closed.
- Contractual Disputes: Without experienced negotiators or legal advisors, businesses may enter into contracts with unfavorable terms or unclear provisions. This can lead to disputes over payment terms, delivery schedules, or quality standards, resulting in financial losses or damaged reputations.
- Market Misjudgment: Lack of market research and analysis can lead to misjudging market demand or consumer preferences. For example, launching a product or service without understanding local preferences or cultural sensitivities can result in poor sales performance or even backlash from customers. We often see clients that chose the wrong location for their business and sacrifice business revenue in their bad unexperienced choices.
- Supply Chain Issues: Failing to conduct proper due diligence on suppliers or logistics partners can result in supply chain disruptions or quality control issues. For instance, relying on unreliable suppliers may lead to delays in product delivery or inferior product quality, damaging customer satisfaction and brand reputation. We have observed former terrible business partners continue to use brands or conduct other brand misusage.
- Financial Pitfalls: Inadequate financial planning or budgeting can lead to cash flow problems or unexpected expenses. Without commercial experts to advise on financial matters such as currency exchange risks or tax liabilities, businesses may find themselves in financial distress or unable to meet financial obligations. In the UAE is advisable to organise and to budge for a slow start. The system expects businesses to invest and compromise with the jurisdiction before seriously do business with them.
We have witnessed all of the above and assisted clients to remedy the cost of their unexperienced actions. The need for expert advice is significant in the following aspects:
- Market Research and Analysis: Commercial experts can conduct thorough market research and analysis to help you understand the competitive landscape, identify opportunities, and assess market demand for your products or services.
- Business Planning and Strategy Development: Commercial experts can assist you in developing comprehensive business plans and strategies tailored to your specific goals and objectives. This includes market entry strategies, product positioning, pricing strategies, and expansion plans.
- Partner Identification and Due Diligence: Commercial experts can help you identify potential partners, suppliers, distributors, and customers in the UAE market. They can also conduct due diligence to assess the credibility and reliability of these partners and mitigate any associated risks.
- Negotiation and Deal Structuring: Commercial experts can assist in negotiating business deals, contracts, and agreements with local partners, suppliers, and customers. They can help you navigate cultural differences, achieve favorable terms, and ensure that agreements are mutually beneficial. This of course beyond or 15+ years of legal experience in the region yet knowledge of the pure commercial aspects is a plus when negotiating contracts. We have often come in too late to exclusive contracts without our clients having requested any sort of compromise on the part of the UAE business to whom they are giving exclusivity.
- Business Development and Networking: Commercial experts can help you establish and expand your network of contacts and connections in the UAE. They can facilitate introductions to key stakeholders, government officials, industry associations, and other relevant parties to help you build relationships and grow your business.
We have observed months and years wasted trying to build a network that is familiar to business experts. It is very surprising because the time and cost that building a reasonable knowledge and network significantly surpass the cost of commercial expert assistance.
- Risk Management and Crisis Response: Commercial experts can identify potential risks and challenges facing your business in the UAE market and develop strategies to mitigate these risks. They can also provide support in crisis management and response in the event of unexpected challenges or disruptions.
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We hope this publication will help you understand the suitability of commercial experts in the UAE and remain available for any questions regarding this post of general application.
For more information published in English you can visit all our publications at this link as well as the videos in English of our Partner Maria Rubert.
*The information on this page is not intended to be legal advice. This article is intended to provide an initial introduction to the suitability of engaging commercial experts in the UAE.