The UAE companies are looking forward to growing their businesses and expanding into Western Europe, the Middle East, and North America this year, according to a survey by Kreston Menon. The study revealed that 62 per cent of UAE businesses are eyeing countries like the UK, Germany, and France for expansion, while 54 per cent are interested in expanding into Middle Eastern countries in 2024. Other regions that are popular among UAE companies for global expansion are Northern America, North Asia, and South Asia.
Sudhir Kumar, senior partner and head of corporate communications at Kreston Menon, highlighted the main challenges faced by UAE entrepreneurs in international expansion, including market volatility, finding the right business partner, and talent acquisition. He also mentioned that most governments have set up special teams to assist international investors, which facilitates the seamless execution of businesses’ expansion plans. UAE companies are showing a global mindset, with 44 per cent considering expanding into North America, reflecting the strong trading relations between the regions.
Government support, skills and talent availability, favourable trade agreements, tech infrastructure and digitalisation, future economic growth prospects, alignment with long-term growth strategy, favourable tax policies, and transparency in the regulatory environment are the key factors attracting businesses to invest in foreign countries, as per the survey by Kreston Menon. UAE respondents value government support as the most attractive factor when considering expansion into a country, while cultural and language similarities are considered the least important. The emphasis on future economic growth and the focus on human capital indicate a forward-thinking mindset among UAE companies.
One of the challenges UAE businesses face when expanding into international markets include managing economic volatility, adapting logistics and supply chain issues, and finding the right local partners. Despite these challenges, UAE companies are keen on expanding globally and are exploring opportunities in various regions around the world. The survey results highlight the strategic mindset of UAE businesses in looking for growth opportunities and overcoming challenges in international expansion. With the support of the government and a focus on skills and talent acquisition, UAE companies are poised to make a mark on the global stage.
